Price Hikes Fuel Intense Competition Between Fast Food Chains and Sit-Down Restaurants

As fast food chains increase their prices, sit-down restaurants such as Applebee’s and Chili’s are offering promotions and deals to attract cost-conscious customers. This competition has become more intense due to the high level of price hikes in recent years, resulting in declining traffic for all involved. While Chili’s and Applebee’s both struggle with lower-income customers, Chili’s has responded by running ads comparing its value and quality to fast food chains. However, experts warn that these restaurants are not solely competing on price, as people typically visit sit-down restaurants for different reasons than fast food chains. Regardless, campaigns like Chili’s can help communicate to customers that these restaurants offer good value, especially as fast food prices continue to climb. Ultimately, this battle for “share of wallet and market share” is expected to be a significant challenge throughout the year.