IHOP, Denny’s join value menu wars to win back price-conscious consumers

Erika Tulfo, CNN

(CNN) — It’s a summertime for single-digit dollar deals arsenic IHOP and Denny’s subordinate different big-name nutrient chains successful offering worth paper options. The 2 companies are nan latest restaurants trying to entreaty to consumers being much selective pinch their dollars successful nan aftermath of value increases.

IHOP announced this week that it is bringing backmost its $5 all-you-can-eat pancake deal. The promotion, which runs until September 15, is meant to align pinch back-to-school play erstwhile “wallets are pinched from shopping,” nan institution said successful a statement. IHOP announced nan aforesaid promotion pinch overmuch fanfare astir nan aforesaid clip past summertime arsenic portion of its 65-year anniversary.

And family eating concatenation Denny’s is basking connected its heels, announcing Tuesday that it would connection repast options for arsenic debased arsenic $2 arsenic portion of its returning $2-$4-$6-$8 worth menu. Denny’s past held nan promotion successful 2020 for its 10th anniversary, and it was touted by its executives arsenic a “consumer-friendly traffic-driving platform” successful a June net call.

The move makes IHOP and Denny’s nan latest nutrient joints, aft McDonald’s, Taco Bell, KFC, Wendy’s and others, to rotation retired single-digit worth meals arsenic portion of an effort lure successful price-weary customers.

With ostentation still moving higher than normal, consumers person been warier of spending their dollars connected progressively pricey speedy food. Starbucks, for example, reported a second-straight 4th of income declines.

And earlier this year, disgruntled customers pushed backmost against McDonalds’ prices hikes, taking to societal media to definitive outrage complete a azygous hash brownish costing $3. Weaker-than-expected income yet forced nan accelerated nutrient concatenation to bring successful worth repast promotions and attraction connected affordability.

“The manufacture is really successful a authorities correct now wherever consumers person pulled backmost beautiful importantly because prices person conscionable gone up truthful far, truthful fast,” said David Henkes, a elder main astatine Technomic, a nutrient manufacture investigation and consulting firm, successful an question and reply pinch CNN. “This is conscionable portion and parcel of what nan edifice manufacture is trying to do to triumph backmost consumers and to heighten their worth perception.”

Restaurants person been faced pinch quickly decelerating ft traffic, Henkes said. He says that IHOP’s dine-in only woody is meant to spur customers into returning to stores.

“The first measurement is to get group successful nan restaurant, and that’s what a batch of these worth meals are meant to do,” he said. “As a restaurateur, you dream that they’re not conscionable taking advantage of nan deal, they’re buying extras, they’re adding connected sausages aliases immoderate different meal meat.”