How Restaurants Can Win on Value

Quality, service, and execution shape purchase intent across restaurant formats

When traffic declines, restaurants often lower prices to drive demand. But competitors risk losing customers to brands offering more than a good deal. Understanding the non-price factors that drive consumer value perceptions could be key to unlocking preference and performance.

Restaurants are caught between two competing forces. Costs for food, labor, and operations are rising, tightening margins.¹ At the same time, prolonged inflation is prompting a subset of consumers to adopt more cost-conscious behaviors. Restaurants are challenged to drive traffic and protect margins as consumers increasingly focus on value when making purchase decisions.

As some restaurants struggle, brands that consistently provide more value than expected for the price are thriving. While pricing strategy is important, “more-value-for-the-price” (MVP) brands seem to understand the full value equation, where quality and consistent execution shape value perceptions. The basics matter, and MVP brands excel at leveraging non-price drivers to build value and drive future purchase intent.

To read more, please visit Deloitte.