Sponsor: Snapchat
As inflation strains household budgets, more Americans are cutting back on dining out. A 2024 LendingTree survey found that 62% of Americans are eating less fast food due to rising prices, and 58% of Gen Z consider quick-service restaurants a “luxury item.” As the cost of living rises and consumer budgets tighten, restaurants are facing declining sales and same-store traffic.
“Rising prices, from inflation to rising wages, are squeezing franchisees’ margins,” said Joseph Tuckman, senior director of food and beverage at Snapchat. “With food prices rising and consumer spending declining, dining out has become less frequent as prices have reached prohibitive levels.”
Offering value meals isn’t just smart, it’s also a necessity to win back customers. Value meals have long been a staple of quick-service restaurants, bundling popular dishes at a discounted price to attract budget-conscious customers.
Discounted meals aren’t enough to build lasting customer loyalty. Operators need to capture customers’ attention where it matters most, and Snapchat offers a powerful platform to do just that. With over 850 million monthly active users, Snapchat offers access to a highly engaged audience that can’t be reached as easily on other platforms.
Snapchat’s strength lies in its ability to connect with a younger audience, particularly Gen Z and millennials, who are known for their frequent fast-food consumption. According to Snapchat, users on its platform open the app an average of 40 times per day, giving fast-food brands the ability to influence meal decisions from breakfast to late night. “Snapchat users are in and out of the app throughout the day,” Tuckman says. “Unlike other platforms where engagement is more focused on specific moments, our community is always active, whether it’s during the morning rush or late night.”
Consistent engagement gives quick service brands an edge in driving awareness, promoting value meals, and encouraging repeat visits. Brands have successfully introduced value meals using Snapchat’s leading ad products, like Snap Ads and Story Ads. Snapchat’s high-impact takeover products and immersive AR experiences allow brands to deliver valuable messages in creative and engaging ways, reaching customers as they actively decide what and where to eat. “Quick service restaurants that invest in AR lenses in addition to traditional ad products are seeing increased reach, increased engagement, and higher organic shares,” Tuckman says. “This adds value and drives campaigns organically.”
Additionally, a study by Snapchat found that Snapchat users are more likely to respond to value-driven promotions. Nearly 26% of Snapchat users say they are more likely to purchase from a restaurant offering a BOGO deal, while 24% are motivated by rewards programs and 18% by discounts. Once engaged, these customers are also more likely to become brand advocates, with 33% of Snapchat users promoting brands that offer rewards and discounts online.
Quick-service restaurants need more than just discounts to stand out. They need platforms that connect with a target audience on a deeper level. By leveraging Snapchat’s broad reach, immersive augmented reality features, and strategic ad placements, restaurants can build stronger relationships. “Added value may attract this generation, but Snapchat can turn them into repeat customers.”
Visit Snapchat.com to learn how Snapchat can help you reach more customers and build loyalty.
By Olivia Schuster
