Key Takeaways
- Restaurant chains are betting that better-tasting food will win back increasingly selective diners.
- Chains like Chipotle and Wendy’s are making upgrades to their menu as part of their turnaround plans.
- At Burger King, menu changes drove chicken nugget sales up by more than 35%.
Restaurant chains are putting their menus front and center as they work to bring back customers.
The push comes as Americans eat out less often and become more selective about what they spend their money on, according to Black Box Intelligence data cited in a new CNBC report. On quarterly earnings calls in recent weeks, executives at Wendy’s, Chipotle Mexican Grill and other chains highlighted changes already reaching customers or headed to menus.
Discounts and limited-time deals can draw a crowd, but chains are counting on taste and quality to turn those visits into repeat business. Additionally, corporate chefs are taking a bigger role in the fight for diners as companies look for an edge beyond promotions.
At Chipotle, that includes another run for its limited-time brisket, which returned to menus last week.
“We think the product’s improved and even better,” CEO Scott Boatwright told analysts on the company’s late-October earnings call.
Better food can contribute to higher sales
At Wendy’s, a menu overhaul is part of a broader effort to boost sales. The chain unveiled a five-part turnaround plan last week, which includes a pledge to deliver “quality food at real value.”
CEO Bob Wright told analysts that Wendy’s is testing changes to some of its staples, including thicker, crispier bacon, a richer and creamier Frosty, whole-leaf lettuce for sandwiches and revamped salads.
“We’re also rebuilding our food offerings and have begun testing improvements to quality and craveability of our core items,” he said.
The chain is intent on winning back customers as it contends with lackluster sales. Last week, Wendy’s reported a seventh consecutive quarter of declining same-store sales.
Using the same playbook
A recipe overhaul can help revive a restaurant business. For example, Domino’s rebuilt its pizza offering in 2009 with a new sauce, garlic-seasoned crust and improved cheese combination. The company then aired candid ads acknowledging complaints that its old crust tasted like cardboard and its sauce resembled ketchup. The recipe changes and marketing push helped drive a 9.9% increase in Domino’s U.S. same-store sales in 2010, per CNBC.
Now, some of the people behind the Domino’s comeback are using the same playbook at Burger King’s U.S. locations.
At Burger King, improvements to menu staples are a central piece of its multiyear turnaround effort. The chain began with the Whopper earlier this year, introducing an upgraded bun and new mayonnaise. In September, it turned to chicken nuggets, rolling out a version made with 100% white meat, crunchier breading and a more flavorful marinade, alongside reformulated sauces.
“We’ve tried to look at our biggest categories first,” Josh Kobza, CEO of Burger King parent Restaurant Brands International, told CNBC.
The effort is paying off. Burger King reported an 8.4% increase in U.S. same-store sales for the third quarter. Sales of the Whopper rose by a double-digit percentage, while chicken nugget sales surged more than 35%, Kobza told analysts on the company’s late-October earnings call.
Key Takeaways
- Restaurant chains are betting that better-tasting food will win back increasingly selective diners.
- Chains like Chipotle and Wendy’s are making upgrades to their menu as part of their turnaround plans.
- At Burger King, menu changes drove chicken nugget sales up by more than 35%.
Restaurant chains are putting their menus front and center as they work to bring back customers.
The push comes as Americans eat out less often and become more selective about what they spend their money on, according to Black Box Intelligence data cited in a new CNBC report. On quarterly earnings calls in recent weeks, executives at Wendy’s, Chipotle Mexican Grill and other chains highlighted changes already reaching customers or headed to menus.
Discounts and limited-time deals can draw a crowd, but chains are counting on taste and quality to turn those visits into repeat business. Additionally, corporate chefs are taking a bigger role in the fight for diners as companies look for an edge beyond promotions.
This story originally appeared on Entrepreneur
