Nearly Two-thirds of Quick Service Restaurants Report Increased Traffic in 2024, Despite Raising Prices Across the Board

TransUnion and Restaurant Dive report finds room for even greater profitability for nearly half of restaurants via loyalty programs

CHICAGO, Nov. 14, 2024 (GLOBE NEWSWIRE) -- Nearly two-thirds (64%) of Quick Service Restaurants (QSRs) reported increased traffic across all dayparts—times when they serve breakfast, lunch, and dinner— in 2024. Another 17% reported rising traffic in some dayparts, according to a new report from TransUnion (NYSE: TRU) and Restaurant Dive.

Most QSR executives attribute this success to a focus on both communicating and capturing value with customers, an important step after 93% indicated they raised prices across the board in 2024.

“Consumers may have become accustomed to inflation over the past couple years,” said Mark Rose, Senior Director of market strategy for TransUnion’s travel and hospitality business. “However, feeling like they are getting value for their increased spending is still an important and compelling part of their decision on where to go for a meal.”

These and other key findings are part of a research study conducted by Restaurant Dive’s studioID on behalf of TransUnion. The survey was completed June 8, 2024 to June 10, 2024, by 100 QSR executives from companies generating at least $250 million in annual revenues. The full results are available in TransUnion’s QSR Industry Report: Bridging the Affordability and Profitability Gap.

While most QSRs raised prices, those that also increased value-driven messaging—content that highlighted savings for consumers—saw a positive effect. More than two-thirds (67%) that “significantly increased” value-driven messaging saw an extremely positive effect on customer traffic. Comparatively, only 53% of those who raised prices but only “somewhat increased” emphasis on value-driven messaging saw the same result.

As part of the value messaging, QSRs also stepped up value deals and combo offerings to give customers cost-effective menu options. While the vast majority of QSRs ran programs, only half saw a positive impact, which were then most likely to continue.

QSR Menu and Pricing Offers

Optimizing loyalty programs
The secret ingredient to successful promotional campaigns may be the use of demographic data in QSR loyalty programs. The report found QSRs using demographic data in their loyalty programs were nearly twice as likely to continue running targeted promotions and limited-time offers, compared to those that did not use demographic data in their loyalty programs.

The finding suggests that in-depth customer insights lead to more successful promotional campaigns that are then extended. However, despite the value that appears to come from having deeper knowledge of loyalty program members, only about half (52%) of QSRs leverage third-party demographic data in their loyalty programs—suggesting a need for greater awareness on best practices.

“When brands tie demographic data to their loyalty programs, they can be more precise in creating the right offer for the right customer and communicating its value in a way that best resonates with the customer’s desires,” said Rose. “Doing so makes the program more efficient and profitable than it would be making the same offers to all members, regardless of their household structure and lifestyle.”

The report notes that QSR brands can leverage identity solutions from partners like TransUnion to augment their first-party data from loyalty programs. Doing so can create new insights about existing customers and enhance their ad targeting to acquire new loyalty members.

TransUnion’s TruAudience® identity products help QSR brands create a single view of their loyal consumers and households with rich demographic insights. TransUnion’s cloud-native applications allow privacy-first access to identity with minimized data movement. Learn more here. 

Click here for full research findings in TransUnion’s QSR Industry Report: Bridging the Affordability and Profitability Gap.

About TransUnion (NYSE: TRU)

TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good^® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business