Value on the Menu: How Applebee’s, Outback, Papa Murphy’s & McDonald’s Are Regaining Traction Through Pricing Promotions

 

Amid stubborn inflation and heightened consumer price sensitivity, four major restaurant brands—Applebee’s, Outback Steakhouse, Papa Murphy’s, and McDonald’s—are proving that price-focused promotions can do more than temporarily boost traffic. When deployed strategically, these offers are becoming engines of sustained sales growth and competitive brand migration.

 

Sales Rebound by the Numbers

·       Applebee’s (Dine Brands) reported a 4.9% increase in domestic same‑restaurant sales in Q2 FY 2025, propelled by the “Really Big Meal Deal” and the “Everyday Two‑for‑$25” platform, which together generated nearly 20% of transactions. The chain also integrated digital exclusives—like app-only add‑on desserts for $2—which lifted average check sizes without eroding value perception.

·       Outback Steakhouse—while part of the same corporate family—saw momentum building from cross-promotional value advertising, even as traffic remained uneven. Dine Brands projects Applebee’s comps to finish the year +1% to +3%, signaling a halo effect that could lift Outback’s value positioning. Outback’s under‑$15 steak‑and‑sides limited‑time bundles have drawn younger diners seeking affordable indulgence.

·       Papa Murphy’s has aggressively leveraged $8.99 Large Summer Select pizzas and $6.99 Mix ’n’ Match offers to defend its position as the take‑and‑bake value leader. February’s buy‑one‑get‑one‑free large pizza promotion drove double-digit traffic lifts in key markets, with a notable 18% increase in loyalty app activations.

·       McDonald’s delivered a 3.8% U.S. same‑store sales increase in Q2 2025, with global comps also up 3.8% and revenue climbing 5% to $6.8 billion. Net income rose 11% year-over-year. The brand credits its $5 Meal Deal, $2.99 Snack Wraps, regional $1 add‑on offers, and a global Minecraft-themed promotion for bringing back lapsed customers and increasing weekday lunch visits.

 

4 Consumer-Driven Reasons Price Reductions Move the Dial

1.       Defensive Budgeting in High-Inflation Times – As grocery and utility prices remain elevated, restaurant spend must feel justified. A $5 or bundled meal is an easy “yes.”

2.       The Emotional ‘Win’ – Promotions deliver the psychological reward of “beating the system” and outsmarting inflation.

3.       Low-Risk Trial & Re‑Engagement – Value offers eliminate the fear of wasting money on a disappointing meal, encouraging trial of new items or return visits.

4.       Restoring Social Dining – Group dining becomes financially attainable again, bringing back multi‑person ticket sizes that had eroded.

 

Inside the Consumer Mind: Price as Trial Catalyst & Loyalty Rebuilder

Price is not just a number—it’s a trust signal.
When brands raise prices too far, too fast, they signal to consumers that loyalty is less important than margin, prompting brand migration. Conversely, a well‑timed rollback or bundled value offer says: “We understand your budget concerns, and we want you back.”

That shift reopens the emotional door for both trial and re‑loyalty. It’s why a former McDonald’s customer might bypass a cheaper grocery lunch—because the $5 Meal Deal now feels like both a safe spend and a small indulgence.

 

Grocerant Guru® Perspective: Strategic Value Resurgence

Steven Johnson, the Grocerant Guru® at Tacoma, WA based Foodservice Solutions®, frames today’s price strategies as more than short-term discounting:

·       Multi‑Channel Positioning – Price‑driven offers position restaurants as direct competitors to grocery and convenience for at‑home meal solutions.

·       Perceived Abundance Without Guilt – Bundles give the sense of “more food for the money” without tipping into overindulgence.

·       Value as Brand Equity – Promotions tied to app exclusives or loyalty programs create a repeat‑purchase loop, building habits beyond the promotional window.

·       Convenience Amplifier – Value deals sell more than food—they sell time, ease, and the relief of not having to plan dinner.

Johnson’s takeaway: when value is framed as part of the brand promise rather than an occasional gimmick, it drives sustained comp growth and defends market share—a true value resurgence, not a price war.

Success Leaves Clues—Are You Ready to Find Yours?

One key insight that continues to drive success is this: "The consumer is dynamic, not static." This principle is the foundation of our work at Foodservice Solutions®, where Steven Johnson, the Grocerant Guru®, has been helping brands stay relevant in an ever-evolving market.

Want to strengthen your brand’s connection with today’s consumers? Let’s talk. Call 253-759-7869 for more information.

Stay Ahead of the Competition with Fresh Ideas

Is your food marketing keeping up with tomorrow’s trends—or stuck in yesterday’s playbook? If you're ready for fresh ideations that set your brand apart, we’re here to help.

At Foodservice Solutions®, we specialize in consumer-driven retail food strategies that enhance convenience, differentiation, and individualization—key factors in driving growth.

👉 Email us at Steve@FoodserviceSolutions.us
👉 Connect with us on social media: Facebook, LinkedIn, Twitter