As food prices continue to rise, restaurants and supermarkets are offering deals to give consumers more value for their food dollars, reports The Wall Street Journal.
On average, a typical restaurant meal costs 3.4 times more than a meal made with groceries, according to NPD Group. Inflation, however, has affected grocery shelves at a faster rate than restaurants. Grocery prices were up 12.4 percent annually in October, while restaurant prices rose 8.6 percent, according to data from the Labor Department. As a result, operators like Wendy’s argue that they can provide consumers more value.
Todd Penegor, chief executive at Wendy’s, said he is trying to get customers in the door with a $5 “Biggie Bag” food bundle.
“It really gets down to who has their back, who earns their loyalty today to drive that frequency tomorrow,” he said. “That’s the game we’re trying to play today.”
To compete with restaurant deals, New York-based Tops Market is leaning into digital coupons, continuing to offer rewards to help shoppers save.
Grocers also told The Wall Street Journal that they are promoting prepared food as a budget-friendly alternative to eating out, while also trying to keep prices low on staples like bread and cereal. Full Story (Subscription Required)
Related: Meijer's Simply Give Spurred Millions of Store Brand Purchases; Mercato Launches Community Program