Sonic jumps into the ring with his latest Value Meal

McDonald’s was the first to launch the $5 menu, which was quickly adopted by Burger King and Taco Bell. Sonic has now entered the segment, offering meals for $1.99 to attract new customers with a unique selection and boost sales of more profitable menu items.

The main focus of these quick service restaurants (QSRs) is to increase customer traffic. Recent data from Placer.ai shows that customer traffic at QSRs has remained stagnant, with only a slight increase seen in the last month.

Experts are skeptical about the long-term impact of these deals on customer loyalty and profitability.

Ira Prevalova, Marketing Director at Adverity, emphasized the importance of consistent quality and service for customer loyalty, even beyond special offers.

Andrew Dickow of Greenwich Capital Group warned that short-term spikes in customer traffic due to inexpensive meals would not necessarily lead to lasting customer loyalty or financial gains for franchisees.

According to the Food Institute, Applebee’s recently introduced a new promotion offering mozzarella sticks for 50 cents through July 28, increasing competition in the inexpensive meal market.

Sonic’s Fun.99 menu, which includes a variety of dishes like cheeseburgers and shakes for $1.99 each, aims to stand out from the crowd by focusing on variety and fun.

Although fast food prices are rising faster than general inflation, competition in the industry remains fierce.

Izzy Kharasch, president of Hospitality Works, predicts that fast-food chains will primarily attract customers who have migrated to other restaurant categories due to price pressure – even if this leads to short-term profit losses.

The trend towards cheap meals in the fast food industry is leading to innovative advertising measures and increased competition, with the focus on attracting and retaining customers in a difficult economic environment.