The QSR industry is more competitive than ever, and tasty food alone won’t cut it. To stand out in a booming market, QSRs need creative, effective promotions to capture customer interest and drive action.
To put things into perspective, when the National Restaurant Association started tracking industry sales in 1970, they were around $40 billion. Fast forward to 2030, and the industry is projected to hit an astounding $1.2 trillion. With more people looking for quick, affordable dining options, it’s no longer just about the food – enticing promotions are key to grabbing attention and keeping customers coming back.
Amid the cost of living crisis, price-conscious customers are drawn to promotions like discounts, BOGO deals, and combo offers in the fast food industry, where affordability is key. Unlike in high-end retail, promotions in QSRs enhance brand appeal by aligning with the value-focused nature of the industry, offering customers great deals without harming brand perception.
In fact, 45% of foodservice operators expect competition to be fiercer this year, according to the National Restaurant Association. This makes it more critical than ever for fast food restaurants to implement well-thought-out marketing strategies that capture customer attention.
Despite this, a surprising gap remains: only 18% of restaurant marketers feel confident that they understand their customers’ behavior after they leave the restaurant, according to Epsilon. This is where promotions can shine – not only by grabbing diners’ attention but also by collecting valuable data. This insight allows you to personalize future offers, improving engagement and driving repeat business.
Limited-time offers, app-exclusive discounts, and seasonal promotions help bring in new customers and keep loyal ones engaged. In today’s economy, offering the right deal at the right time can make all the difference.
As we look to 2025, fast food restaurants are navigating a more complex and competitive environment than ever before:
Promotions in the QSR space need to be quick, effective, and tailored to their fast-paced, value-driven customers. Only in the first half of 2024, the number of promotions increased by 25% in Quick Service Restaurants (QSRs), according to QSR Media UK, highlighting the growing importance of well-executed promotional strategies.
Here are some key types of promotions that consistently deliver results:
LTOs are one of the most powerful tools to create urgency. Offering discounts or exclusive items for a short period encourages customers to act fast. McDonald's McRib or Starbucks’ Pumpkin Spice Latte are classic examples of LTOs that leverage FOMO (fear of missing out). According to Datassential, LTOs can boost sales by up to 20% when executed well.
Encouraging customers to spend more by offering meal bundles (like a burger, fries, and drink at a discounted rate) is a tried-and-tested strategy for increasing AOV. Combo deals are a major draw for cost-conscious consumers, especially when paired with digital offers. Bundling items also helps QSRs upsell without customers feeling like they’re spending too much.
Subway, for instance, successfully taps into this with its sandwich, drink, and chips combos, which not only increase sales but also give customers a sense of saving.
Offering customers the chance to upsize their meals for a minimal cost is another simple but effective tactic to increase order value. By offering a larger drink or extra fries for a small add-on price, QSRs can upsell without making the customer feel like they’re overspending. Burger King has used this tactic with great success, encouraging customers to upgrade their meals to “King Size” for just a bit more, driving higher ticket sales.
BOGO deals are an effective way to boost both sales volume and customer satisfaction. They encourage larger purchases by giving customers the feeling that they’re getting extra value for their money. BOGO offers work especially well for QSRs, where lower-cost items make it easier for customers to justify buying more.
For example, Dunkin' has successfully used BOGO deals on their beverages, offering a free drink with the purchase of another during specific days or events like National Coffee Day. Whether customers share the second item or save it for later, they leave feeling like they’ve gotten a great deal.
With more consumers ordering online or through mobile apps, digital coupons are an essential tool for driving both in-store and online traffic. These can be personalized based on customer behavior, offering specific discounts tailored to their preferences.
According to a Valassis study, 92% of consumers actively look for coupons before making a purchase, and digital coupons make it easy for QSRs to engage with customers across different platforms. App-exclusive deals, such as offering free delivery or a discount on a first app order, can increase app downloads and customer loyalty.
With the rise of online food delivery, offering free delivery or discounted delivery fees has become an effective strategy to increase orders, especially for customers who prefer convenience. Chipotle, for example, frequently runs free delivery promotions during peak times like weekends or holidays, boosting online orders while encouraging customers to try delivery services.
Tying promotions to holidays or special events (e.g., offering a discount during the Super Bowl or a free dessert on Valentine’s Day) allows QSRs to tap into customer excitement and align their offers with the broader cultural moment.
Krispy Kreme often runs seasonal promotions such as offering themed doughnuts for Halloween or special deals on National Doughnut Day, where customers receive a free doughnut with no purchase required, drawing in crowds and creating brand buzz.
McDonald’s has consistently leveraged its Super Value Meals to offer customers the perception of savings while increasing AOV. These combo meals bundle a burger, fries, and a drink at a discounted price, creating convenience and encouraging larger purchases. Sometimes, they also have promotions which also include an add-on product.
The brand’s app-based promotions, like daily deals and app-exclusive offers, have also significantly boosted app downloads and sales.
Taco Bell’s "Steal a Base, Steal a Taco" campaign has been a standout success for years. Linked to the MLB World Series, Taco Bell offers customers a free taco if a base is stolen during the series. This clever promotion capitalizes on a major national event, generating excitement and reinforcing Taco Bell’s brand in the minds of millions.
Wendy’s 4 for $4 promotion has been a game-changer in value-driven fast food marketing. Customers receive a burger, fries, chicken nuggets, and a drink for just $4. The deal is frequently shared and discussed across social media platforms, generating buzz for the brand and driving sales during slow periods.
Starbucks’ Happy Hour BOGO (Buy One Get One) promotion is another example of how strategic timing can enhance a promotion’s success. Starbucks offers a buy-one-get-one-free deal on select beverages during specific hours of the day, which helps to drive traffic during the slower afternoon period. By using in-app notifications and emails to alert loyal customers, Starbucks ensures high participation in the promotion while keeping customers engaged with the app.
Chick-fil-A ran a successful free breakfast entrée campaign to encourage morning visits. By offering a free breakfast item to customers who downloaded their app, Chick-fil-A not only increased app downloads but also boosted breakfast sales during a time slot where fast food restaurants often struggle. This promotion was successful in generating increased morning traffic and expanding the use of the Chick-fil-A app.
Timing is crucial when planning promotions. Running offers during high-demand periods like lunch hours, weekends, or holidays can significantly boost foot traffic and sales. For example, lunchtime promotions appeal to busy professionals, while holiday specials tap into seasonal buying patterns. Limited-time offers (LTOs) during these key moments create urgency, encouraging customers to act quickly.
The QSR market demands efficient data synchronization across multiple channels. Using a unified platform to manage coupons, promotions, referrals, and loyalty programs is more effective than relying on multiple disconnected systems. A bloated tech stack can lead to inefficiencies, higher costs, and complexity. Consolidating operations into one platform simplifies processes, ensures consistency, and improves customer engagement. With tools like APIs and webhooks, composable platforms enhance data flow and agility.
Everyone loves a bit of fun, and gamification can be a great way to engage customers while offering promotions. Incorporating games or challenges into your promotions creates excitement and encourages repeat visits. For example, you could run a digital scratch-off contest where customers win discounts or free items, or create spin-the-wheel challenges where customers instantly earn rewards.
Burger King’s “Burn That Ad” campaign used augmented reality to let customers “burn” competitors' ads within the Burger King app. When users scanned a rival brand’s billboard or print ad, the app displayed the ad burning away, revealing a free Whopper coupon underneath.
To assess the effectiveness of your promotions, it's crucial to track key metrics like redemption rates, foot traffic, and average order value. Redemption rates tell you how many customers are taking advantage of the offer, while foot traffic and order values reveal the promotion’s impact on overall sales.
But beyond just tracking sales, it’s equally important to see your campaigns as a treasure trove of data. By gathering customer feedback and analyzing behavior, you can uncover valuable insights into your consumers’ preferences, enabling you to further personalize future promotions. In today's competitive QSR market, where restaurants are fighting for every customer, understanding your audience’s needs and tailoring your offers accordingly is key to standing out and fostering loyalty.
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