ATLANTA — Tough times call for creative measures so this summer several quick service restaurants are offering more specials and value deals.
According to Annika Stensson of the National Restaurant Association, it's about accommodating consumers' wallets.
 KIMBERLY SMITH/Cox Newspapers Exterior view of an Arby's restaurant in Sandy Springs, Ga. For a larger, high resolution image, click HERE |
"The restaurant industry is, and always has been, driven by consumer demand, and what consumers want right now is value," she said. "Value deals are offered to draw more customers into the restaurant, but the only way to do so is to give consumers what they want or they would simply go somewhere else."
The industry has taken notice.
In May, Arby's began a weekly promotion called Wednesday FREEbies. Each week, one menu item is available to customers at no charge, as long as they make the necessary drink or side purchase.
While on occasion McDonald's has held "giveaways" on some consumer favorites — Free Fry Days in February, for example — their promotions are more focused on new product launches. This summer McDonald's will offer free samples of the new McCafe, specialty coffees. The company is also putting on the McDonald's McCafe Urban Soul Lounge, a series of free summer concerts at select stores.
Popeye's summer promotions are focused on value. Promotions like eight pieces for $4.99 and two pieces for $1.99 are considered payday promotions. Because of their success in the past, customers should expect to see these promotions again
Consumers based their choices off of their wallets, said Stensson.
"They still have a desire to dine out, but may alter their location and menu choices to fit it into their budgets," she said.
Lucy Jennings and her daughter, Belle, made use of the Arby's promotion recently. It was her mother, Billie, who saw the promotion in the paper.
"It got us in here," said Jennings, sitting with her parents at an Arby's in Atlanta. "I have not eaten here in awhile. I will probably be coming back."
Quick service restaurants have an advantage. According to Stensson, they tend to do a little better than table service restaurants in a down economy, said Stensson.
"They are at a lower price-point. Our 2009 Restaurant Industry Forecast projects quick service sales to advance by 4 percent this year, compared to 1.0 percent for table service," she said. "When adjusted for inflation, quick service is at 0.4 percent real growth while table service is at negative 2.5 percent."
Jason Abelkop, senior vice president of Marketing & National Media for Arby's, said they know it is tough for their customers.
"A lot of them are walking around with less money in their pockets than they had before," he said. "The only thing that's not hitting our consumers hard right now is gas prices."
Value is a pretty hot button in the quick service industry, said Dick Lynch, chief marketing officer for Popeye's Chicken.
"In these tough economic times, what's most important to us are our customers," he said. "Therefore we are looking for promotions that make Popeye's more accessible to our customers and at the same time is profitable for our restaurants."
Mashaun D. Simon writes for The Atlanta Journal-Constitution.
