As inflation persists, big food companies and restaurants are working to cater to consumers’ tighter budgets, reports The Wall Street Journal.
As consumers shift where they buy groceries, companies like Yum Brands and Kraft Heinz are showcasing their value offerings, according to executives. Kraft Heinz, for example, is ensuring dollar stores and discount retailers are stocking its products. Fast-food and sit-down chains are also pushing low-cost deals to keep consumers coming in.
American consumers are becoming more discerning about the value they expect,” said John Peyton, chief executive of Applebee’s owner Dine Brands.
Overall inflation remains high, although it is slowing. According to the Consumer Price Index, it rose five percent in March, compared to the same month last year. This value is down from a six percent increase in February. Food inflation has also relaxed slightly.
Executives at Kraft Heinz shared that, likely as a result, some lower-income consumers have been moving to budget-friendly retailers from traditional supermarkets, and higher-income shoppers have shifted to traditional supermarkets and club stores instead of specialty markets. Kraft Heinz indicated its flexibility to shift to club-sized packaging for items like Mac & Cheese and Jello, and its readiness to add items to dollar stores. It also seeks to implement higher-impact sales promotions. Full Story (Subscription Required)
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