Limited Time Promotions Help Some QSRs Weather Storms

Quick-service restaurants have faced headwinds this year ranging from higher costs to higher competition, but some brands have adapted particularly well, according to a Placer.ai report. The study examined data from Restaurant Brands International (RBI), owner of Burger King, and Yum! Brands, owner of Taco Bell, to see how they performed during the third quarter.Rightsizing and modernization efforts Burger King has implemented are paying off, as average visits per location increased slightly (0.4%) year-over-year. The company’s “Royal Reset” modernization effort includes restaurant remodels and upgrades to equipment and technology.Closing underperforming stores under the company’s rightsizing program resulted in a 1.7% decrease in overall visits. But foot traffic data in large regional markets including Texas, Illinois, Washington and Connecticut, show Burger King’s year-over-year visits per-location outperforming its chain-wide average. Placer.ai said this per-location uptick might have been fueled in part by Burger King’s summer “$5 Your Way” value meal special, which drove elevated visits through July.Taco Bell also enjoyed a boost in visits, with monthly year-over-year increases ranging from 1.2% to 2.2% during the summer. A minor dip in September visits may be due to the month having one fewer Friday compared with the same period last year, Placer.ai said. Even accounting for this dip, visits to Taco Bell were up 0.6% year-over-year overall during the third quarter.The company benefited from successful promotions, including its National Taco Day push on Oct. 1 – which provided 10 hours of $1 tacos. That drove an 18.4% increase in visits compared to an average year-to-date Tuesday. In July, Taco Bell attracted big crowds with a limited-time offer commemorating the 20th anniversary of the chain’s popular Baja Blast beverage.Taco Bell is Yum! Brands’ largest chain, accounting for more than 70% of its visits in the third quarter.