Inflation might be moderating, but the fast food value marketing battle is still going strong, with brands including Subway, McDonald’s, KFC and Taco Bell continuing to plow advertising into cheap meals.
Dunkin’ is the latest brand to get on the value meal bandwagon with a $6 breakfast meal deal—a bacon, egg and cheese sandwich, hash browns and a medium hot or iced coffee. The brand’s latest creative features the U.S. cast of “Love Island.”
Food inflation began soaring in 2022, with restaurant prices increasing 7.7%, according to the USDA. But for fast food brands, the situation did not reach a tipping point until earlier this year, when consumers seemed to have had enough, causing chains from Applebee’s to McDonald’s to report dips in traffic and same-store sales. Companies responded quickly with value meals, which are still being rolled out, accompanied by a lot of marketing. Food prices are expected to continue to decelerate in 2024, the U.S. Department of Agriculture noted in its August report, noting that food-away-from-home prices (restaurants) are predicted to increase by 3.1% in 2025.