In 2023, the fast-food industry faced a significant challenge with rising prices.

Fast-food chains had to think—well FAST.

Consumers perceived McDonalds and Burger King to be very similar with ‘Convenient,’ ‘Affordable’ and ‘Offering options friends and family enjoy.’

BurgerKing always trails in their head-to-head competition with McDonalds on these dimensions.

Rising prices are challenging the price/convenience positioning and surpassing consumer acceptance thresholds.

Value perceptions in QSR have been hit harder than other food service formats, and this has led to an increase in promotions.

McDonald’s is reported to be doubling its value mix. These promotions build revenue but detract from the brands core relationships.

Menu innovations by both are attempts to move somewhat toward a position that emphasizes a greater connection with customers.

Both Sonic and Wendy’s connect with guests on an emotional level.

Sonic is ‘Different’ as it has ‘Has trendy menu options’ and ‘Cares about its customers,’ and Wendy’s is ‘For someone like me’ and ‘Tastes good.’

In our next video, we will talk about the implications for reaching the brand’s potential. 📲