The cost of living crisis has led to an increase in fast food options

Fast food giants are in an increasingly fierce race to offer you the best deal.

Whether it’s cheap breakfasts at McDonald’s or bakery chain Greggs, or lunch deals at KFC and Domino’s, promotions are growing in popularity.

So why this sudden wave of special offers?

Simply put, customers are more frugal, and chains want to keep them coming back, even as critics worry about the health impacts of this buffet of fast-food offerings.

The number of promotions offered in fast food restaurants, bakeries and cafes between April and June this year increased by a third compared to the same period last year.

This is according to data from Meaningful Vision, which tracks the sector.

“The use of promotions is developing as a key tool for generating additional traffic, which has not increased so far,” says CEO Maria Vanifatova.

Attendance declined over the year through May, and is up only 1% from last year, she said.

Fast food operators, like other businesses, have raised their prices sharply during the cost of living crisis.

But fast-food prices have risen on average slightly more than those at grocery chains, said Siobhan Gehin, a retail expert at consulting firm Roland Berger who was previously an executive at KFC.

“This unprecedented speed of change has not really given businesses or consumers time to get used to the new price levels,” she says.

This encourages customers to choose cheaper meals or eat at home, Gehin adds.

So, fast food companies “use the lever of promotion to try to stimulate demand.”

Let’s not forget that companies have to take into account their financial results.

McDonald’s saw its first sales decline since the pandemic in the second quarter of this year, forcing the company to “A complete overhaul” of pricing.

“It used to be good value for money but is now considered quite expensive,” says Clare Bailey, an independent retail expert whose first job was working in a McDonald’s.

She says you can get a sit-down meal in a pub for barely more than a meal at a fast food chain.

But there are reasons that have forced the industry to raise its prices, she said.

High energy costs, packaging costs, rising minimum wages for staff and, in McDonald’s case, a commitment to sourcing beef locally, have all played a role.

Alistair Macrow, managing director of McDonald’s UK and Ireland, says people are facing tough decisions about where and when they spend their money and value is “more important than ever”.

He says the company listens to customer feedback when considering what to offer.

“Our 3 for £3 offer was first launched at the end of the month, when our customers tell us they need help most, and during the school holidays, allowing more families to come together for a meal out.

“We heard it worked, so we reintroduced it to coincide with the school summer holidays.”

He adds that McDonald’s launched a breakfast offering in the spring – which put it in direct competition with Greggs – because “customers told us they needed to prioritise value at breakfast”.

This agreement has also been reinstated for a limited period.

Maria Vanifatova says lunches have become particularly competitive.

For example, KFC launched a £5.49 lunch deal in March, which includes a fried chicken wrap, a side and a drink.

A month later, Domino’s unveiled its £4 Cheeky Little Pizza at lunchtime, and Pizza Hut and TGI Friday’s have also recently joined the mix.

However, while these chains claim to want to offer good value for money to their customers, Katherine Jenner, director of the Obesity Health Alliance, is cynical and concerned about the impact on health.

“Multi-buy deals aren’t designed to save people money. Companies don’t offer them to be nice,” she says.

“It’s a marketing tactic designed to get people to buy things they wouldn’t otherwise buy.”

Jenner says fast food portions are much larger than those you prepare at home. They also contain more sugar, salt and fat, she adds.

“You can’t even make informed decisions about what you buy because the information is not readily available.”

So how long can we expect this proliferation of promotions to last?

“Once consumers expect discounts, coupons, etc., it’s hard to remove them because many shoppers will eventually come to rely on them,” Bailey says.

“They might never have gone there at full price.”

However, Siobhan Gehin is not so sure.

“I expect discounts to continue at least through the end of the year, but to gradually taper as consumer sentiment continues to improve and interest rates decline.”

But one trend that seems here to stay is offering deals through apps.

McDonald’s Monday and Burger King Wednesday promotions are two examples of app-based promotions. KFC and Subway also offer new deals every two to three weeks for their app customers.

“More and more companies are approaching their loyal customers and offering them deals to retain their loyalty,” says Maria Vanifatova of Meaningful Vision.

They hope that their loyal customers will reward them in kind.