CNBC·
Restaurant chains refocus on food quality to bring back diners
Summary
- Restaurant chains are prioritizing food quality and taste to regain diners after consumers dined out less frequently and became more selective over the last two years.
- Industry executives define value as encompassing more than just menu pricing, focusing on long-term growth and franchisee profitability through product improvements rather than temporary discounts.
- Chipotle CEO Scott Boatwright stated that the burrito chain's product has improved, citing the return of brisket to the menu.
- Wendy's included quality food at real value as a pillar of its five-part turnaround strategy, testing improvements such as thicker bacon, creamier Frostys, whole leaf lettuce, and better salads.
- Wendy's reported its seventh consecutive quarter of same-store sales declines and rejected a $1.4 billion takeover bid from Trian Partners.
- Domino's Pizza achieved a 9.9% U.S. same-store sales growth increase in 2010 after changing its recipe to include garlic in the crust & shredded mozzarella with provolone.
- The team behind the Domino's turnaround is now applying similar strategies at Burger King, which revamped the Whopper bun & mayonnaise & overhauled nuggets to use 100% white meat with crispier breading.
- Burger King reported double-digit Whopper sales growth & over 35% nugget sales growth in the third quarter, contributing to an 8.4% jump in U.S. same-store sales.
- Chili's is improving existing menu options by dry-aging beef in-house to increase tenderness & taste, following enhancements to ribs, burgers, & nachos.
- Applebee's launched juicier chicken tenders & plans to overhaul more protein options in 2027, citing proteins as a major focus for consumer eating habits.
- McDonald's is testing hand-breaded chicken wings, strips, & sandwiches in Chicago-area locations with plans to expand trials to the U.S. & Ireland in early 2027.
- McDonald's is upgrading coffee with fresher beans & better equipment to capitalize on the growth of chicken & coffee categories.
- McDonald's U.S. same-store sales fell 0.2% in the third quarter after its value strategy failed to gain expected traction.
- McDonald's launched the "Make It Golden" multiyear training program in October to improve the quality & consistency of core menu items for employees & franchisees.
Wendy's, Burger King, Chipotle and other chains are upgrading menu staples as restaurants look beyond discounts to win back diners.
- Keywords
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