Evolving meal deals from a lunchtime staple to an all-day strategy

Deal-searching is an ingrained habit for consumers when eating out. 53% say they are always on the lookout for a deal when they consider going out to eat and drink, with this number rising to 57% for food to go specifically. This value seeking behaviour is driven by the meal deal – a staple of UK food to go.

Retailers have long used lunchtime meal deals to win on value and convenience, typically offering a main, side and drink for a set price point.  More recently, foodservice food to go operators (specialists including coffee, fast food, bakery, sandwich, etc.) have been adopting a similar tactic to compete.

The fixed price of meal deals helps consumers plan their spending. With economic uncertainty affecting household budgets and potentially reducing visits and spending in the food to go market, meal deals represent value and may help maintain customer frequency and spend.

With the UK as a source of inspiration and a benchmark for meal deal success, other markets are following the trend, particularly in the US.

Tiered systems to meet different budget needs

Tiered deals were first introduced to UK meal deals in late 2022, with Sainsbury’s, Morrisons and Amazon Fresh being first to introduce a premium deal. Tiered deals allow retailers and operators to include more premium products in deals while still delivering value to the consumer. This keeps deals inclusive for consumers on any budget, while also encouraging increased spend to benefit the operator.

In the US, Taco Bell and Wendy’s have recently adopted the tiered mechanic. Taco Bell’s Luxe Value menu features three “Luxe Cravings Boxes”, priced at $5, $7 and $9, with more and higher-quality items at each tier. Wendy’s Biggie Deals are a similar concept, priced at $4, $6 and $8. Wendy’s has since brought the Biggie Deals to the UK, with similar price points.

Tiered systems help food to go remain affordable and accessible, and can encourage upgrades that still often fit within budgets. Within one retailer or operator, tiering is clear and easy to understand. When applied across the whole market, however, the meal deal landscape can appear confusing to the consumer. Looking at just retailer meal deals, our research last year showed how complex this environment has become with the addition of tiers and loyalty pricing. Layer in operators too, and this can be an overcrowded space for consumers to navigate.

More competition from casual dining

While set menus are not uncommon for full service restaurants, casual dining chains are becoming more competitive with their value deals and learning from the food to go sector with the mechanics of deals.

Chili’s has adopted a meal deal-type mechanic with its 3 For Me deal; a full meal starting at $10.99 for a choice of main, bottomless chips and a drink. Consumers can upgrade to more premium mains with deals at $12.99, $14.99 or $16.99. This deal forms part of Chili’s barbell strategy, which elevates the extreme value and premium ends of their menu. This allows Chili’s to attract both value-driven, budget-conscious consumers, and quality-seeking consumers who are able to pay more, at the same time.

Habit Burger & Grill’s Gotta Habit meal deal offers a generous half portion of one of three of its signature sandwiches, with a choice of one of three sides and a drink. Similarly to the Chili’s deal, it also fits into tiering, costing $6, $8 or $10 depending on the sandwich chosen. This deal directly targets lunch, creating more competition for foodservice operators and retailers.

Daypart expansion to deliver value across all occasions

While lunch remains the busiest daypart for meal deal pricing, set price point deals are becoming more common in others too.

In the US, EG launched its $3 breakfast sandwich and coffee deal at the beginning of this year. For those only planning to buy breakfast or a coffee, the deal makes buying both an affordable, yet great value, upgrade. A hashbrown can be added for $1 extra, encouraging further trade ups.

Truck stop chain Love’s combined its changing meal deal promotion with a viral food trend, to offer a $5 drink deal with two drinks and a large cup of ice, inspired by the dirty soda trend on social media. The timely marketing helped customers join in on the trend at an affordable price point, delivering not only on value but also experience and connecting with consumers on a more emotional level.

Considerations for adopting meal deals:

• Marketing and comms need to be clear and cut through the noise of competitor deals – and other deals operators may be running themselves – to help consumers avoid bill shock and prevent them losing trust in the value an operator or retailer can deliver.

• As casual dining operators raise the bar on lunchtime value, food to go operators and retailers will need to continue to compete on pricing, while leveraging their convenience proposition from pre-prepared products or quick service formats. 

• Lunch is the main time for meal deals, but value is always important for on-the-go consumers, especially those on tighter budgets. Operators should keep promotions straightforward with consistent pricing and deals throughout the day to maintain clarity and value perception.