Competition Moves Beyond Discounts
Restaurant chains are putting food quality at the center of their efforts to win customers, upgrading everything from chicken and sauces to burgers and frozen desserts. According to Black Box Intelligence data cited by CNBC, consumers have eaten out less frequently over the past two years and become more selective about where they spend.
Executives have repeatedly argued that value involves more than price. Their latest menu initiatives put that argument into practice: promotions may generate short-term visits, but the food itself remains important to sustained sales and franchisee profitability. Recent earnings calls featured a series of improvements intended to give customers reasons to return beyond a discount.
Chipotle Mexican Grill is among the companies emphasizing taste. On its late-October earnings call, CEO Scott Boatwright said the chain had improved its brisket, which returned for a limited run on Thursday. The broader industry shift encompasses both struggling operators and chains already recording strong growth.
Wendy’s Makes Menu Changes Part of Its Recovery
Wendy’s outlined a five-part turnaround strategy on Thursday that includes better food at accessible value. CEO Bob Wright told analysts the company had begun testing changes to key products, including thicker, crispier bacon, a creamier Frosty, whole-leaf lettuce for sandwiches and upgraded salads.
The effort comes as Wendy’s faces prolonged sales pressure. The company reported its seventh consecutive quarter of declining same-store sales on Thursday. It also publicly rejected a $1.4 billion takeover offer led by Nelson Peltz’s Trian Partners, arguing that the proposal failed to reflect the potential value of its recovery strategy.
The menu tests are therefore part of a broader attempt to restore the business, rather than evidence that a recovery has already arrived. The report provides no sales results for those changes, leaving their customer appeal and contribution to the turnaround unproven.
Burger King Draws on Domino’s Recipe Reset
Burger King’s U.S. recovery effort has focused partly on its largest menu categories and changes that are relatively straightforward for restaurants to implement. Restaurant Brands International CEO Josh Kobza told CNBC that the chain considered both category size and operational complexity when choosing improvements. Earlier this year, it introduced a better Whopper bun and new mayonnaise; in September, it revamped nuggets with all-white meat, crispier breading and a more flavorful marinade, alongside revised sauces.
Kobza said on the company’s late-October earnings call that third-quarter Whopper sales rose by a double-digit percentage and nugget sales increased more than 35%. Burger King’s U.S. same-store sales grew 8.4% in the quarter. Those gains followed the product changes, although the figures do not establish how much of the growth came from recipe improvements alone.
Some leaders involved in Burger King’s effort previously helped turn around Domino’s. The pizza chain replaced its sauce, added garlic to the crust and changed its cheese blend in 2009, helping drive 9.9% U.S. same-store sales growth the following year. Burger King has also adopted advertising that acknowledges past customer complaints, featuring U.S. president and former Domino’s executive Tom Curtis.
Casual-Dining Chains Target Proteins and Preparation
Chili’s is continuing to upgrade existing dishes despite a 52% increase in same-store sales over the past three years. After working on ribs, burgers and nachos, the chain plans to focus on salads and steaks, Brinker International CEO Kevin Hochman told CNBC. He said additional dry aging of beef would cost somewhat more but was expected to improve tenderness and taste.
Applebee’s introduced a juicier chicken tender during its latest quarter and plans further changes to protein offerings in 2027, according to Dine Brands CEO John Peyton. He described proteins as the chain’s biggest opportunity and said customers were increasingly emphasizing protein over carbohydrates. These initiatives show that food upgrades are being used both to support growth and to address weaker performance.
McDonald’s Tests Products and Strengthens Training
McDonald’s is testing hand-breaded chicken wings, strips and a sandwich at a small number of Chicago-area restaurants. It plans to broaden the trial to additional U.S. locations and Ireland in early 2027. At its September investor day, executives also outlined coffee improvements involving fresher beans and better equipment. CNBC identified chicken and coffee as faster-growing categories offering more sales opportunities than the company’s core beef burgers.
The initiatives follow disappointing results from McDonald’s U.S. value strategy. Domestic same-store sales declined 0.2% in the third quarter, although the company is not undertaking a full turnaround comparable to Wendy’s or Burger King. In October, it launched “Make It Golden,” a multiyear training program covering corporate staff, restaurant employees and franchisees.
Execution remains a central test across the industry: better ingredients and revised recipes must translate into consistently better meals. Burger King’s gains offer an encouraging example, but upcoming trials, additional costs and day-to-day restaurant preparation will help determine whether the wider quality push produces durable sales improvements.
Source: CNBC