McDonald’s and other major U.S. fast-food chains are discovering that cheap meal deals are no longer enough to persuade price-conscious consumers to spend more.

Reuters reports that several restaurant companies struggled during the second quarter despite offering discounts, as customers increasingly considered food quality, menu variety and overall experience alongside price.

McDonald’s recorded only a 1.3 percent increase in global comparable sales during the quarter, while its U.S. business faced weaker customer traffic.

Chief Executive Chris Kempczinski attributed some of the weakness to poor execution, showing that simply lowering prices does not necessarily guarantee stronger sales.

Other chains have taken different approaches. Taco Bell, for example, combined value offers with new menu products and different meal options, helping the brand achieve a 7 percent increase in same-store sales.

Burger King and Domino’s Pizza have also used promotions and loyalty programmes to encourage customers to return.

The results highlight changing consumer behaviour in the fast-food industry.

Inflation and higher household expenses have made customers more careful about spending, but businesses are learning that consumers still want value rather than simply the cheapest possible meal.

For McDonald’s, the challenge will be finding the right balance between affordability, menu innovation and profitability.

Analysts say the company and its competitors may need to move beyond discounting and focus more on improving the overall customer proposition if they want to sustain sales growth.

Source: Reuters