The current value environment started in earnest during the summer of 2024, when McDonald’s launched its $5 Meal Deal after admitting low-income consumers had pulled back their visits.

Most chains (particularly in quick-service, but no segment was spared) quickly followed suit, adding their own interpretations of value menus or meal deals, and pouring millions of dollars to establish top of mind awareness about those offers.

Yet here we are one year later, and traffic remains negative. According to new data from Revenue Management Solutions, traffic is down 0.9% year-over-year. More concerning is that companies have started to report erosion not just among low-income consumers, but also middle-income consumers.

McDonald’s extended its platform in January with the launch of the McValue Menu, but the chain’s first full quarter following that introduction yielded more traffic losses and an even bigger decline (-3.6%) in same-store sales than the previous quarter, which was its first negative quarter since the pandemic.

Despite such results, many brands trudge on, throwing out more deals in a desperate attempt to gain traction amid a stubborn consumer set. Just last week, for instance, Habit Burger & Grill launched a $6, $8, $10 Gotta Habit menu, while Baskin-Robbins introduced a Parent Pass promotion offering $1.99 scoops, Subway began serving up $1 Footlong sandwiches whenever guests order a signature sandwich at full price, and Krystal introduced a “Snacky Hour,” with $1 and $2 offerings. On the casual dining side, Red Lobster is putting a spotlight on the menu items it offers under $20, while Applebee’s recently brought back its All You Can Eat menu for $15.99.

That said, are these introductions actually desperate? Sure, traffic remains muted and first quarter sales at most public chains were lackluster, but one of the biggest directives for restaurant operators across segments is to give consumers what they want, and right now they’re clearly seeking such value.

According to new data from Yelp analyzing consumer searches from January to March 2025 versus the same period in 2024, inquiries for “cheap eats” increased by 21%. Further, searches for “value meal” were up by 22%, and searches for “meal deal” rose by a whopping 117%.

Technomic research finds that 56% of diners choose restaurants with lower price points, which is the highest number historically reported by consumers.

It’s worth noting that these value deals might feel like a small concession for consumers as menu prices have reached the highest levels ever seen and as the gap between menu prices and general inflation continues to grow. On average, menu prices are up 4.3% year-over-year, while overall inflation is up 2.4%. And despite the barrage of recent news about deals, the number of value meals has actually decreased since last year — down 5.1%. According to Technomic, some value meals that still exist have taken larger price hikes to keep pace with higher input costs, including taco value meals, prices of which are up 11.2% year-over-year, and snack value meals, which are up 10.1%.

In other words, the value environment is a bit of a confusing mess right now. There are less deals despite consumer demand for more deals, and the deals that do exist are costlier than last year’s deals.

It’s no wonder, then, that the definition of value has evolved significantly throughout the past year, with more operators talking about experience, atmosphere, food quality, accuracy, and convenience as part of their proposition.

“When I first started, it was all about price. Now, it’s about consumers’ willingness to pay more, but you’ve got to give them more,” Technomic managing principal Joe Pawlak said during a recent interview. “Consumers have shown they’re willing to pay a higher price — at fine dining or steakhouses and such — but you’ve got to prove to (them) that it’s worth it, whether through craveability, high quality, atmosphere, or environment. People will pay more if they feel like it’s worth it.”

Pawlak noted, however, that it remains critical to have entry-level price points to gain back lower-income consumers and move the needle on traffic. One such solution is to offer barbell pricing, with both entry-level and premium options.

“Menu prices are accelerating again,” he said. “One of the consumers we’re losing is the lower-end consumer and we have to look at two menu options — one that appeals to customers from the premium level, but we also have to have more value to entice people looking for lower pricing. Barbell is becoming more important, and by doing barbell pricing, someone who comes in for a $9.99 meal could be enticed to say the $19.99 meal actually looks good. Barbell pricing could mitigate some of the issues we’re having.”

Technomic notes that operators should also experiment with unique new menu items to get people in the door, and 2024 was a historically high year for limited-time launches accordingly. Further, the company recommends that operators prioritize consumers’ dine-in experiences as the pendulum swings back toward such occasions.

“Off-premises remains an important business channel, but it should not compromise dine-in staffing and overall experience,” Technomic writes. “With younger diners leading the recent uptick in on-premises occasions, operators have tremendous opportunity to deliver on the value inherent in the dine-in experience.”