How three foodie franchise systems are answering the call of franchisees—and their guests—for affordable menu options that are easy on the wallet
By Rachel Debling
It doesn’t take a psychic to understand the latest “craze” on quick service restaurant (QSR) menus, one that has nothing to do with taste-based trends. Since the end of the pandemic, there’s been a major issue on the minds of consumers that’s been affecting their mealtime decisions: the pocketbook pinch and how to combat it.
Look at the marketing and social media of most QSRs, and they are likely pushing their latest value meal deal, or add-on items that won’t break the bank—and these brands are betting on them to lure back customers who may have decided that with inflation on the rise, soft luxuries like takeout and delivery are the first things to go.
Canada’s Food Price Report, an annual analysis produced by a group of researchers from Canadian universities, estimated that over the course of 2024 shoppers will experience a five- to seven-per-cent increase in the price of baked goods, meats, and vegetables at the grocery store. Other personal costs are also on the rise: in July, the average cost of gas in Toronto was 166.8 cents per litre (not to mention that the federal carbon tax came into effect on April 1, 2024, pushing prices up by 3.3 cents per litre), and across the country, rent has seen a sharp 30.8 per cent increase over the past three years.
In response, many QSR brands have been pushing out more affordable bundles and have introduced (or re-introduced) the value menus that were once a staple of the sector. Franchise Canada spoke with three quick service restaurant brands that have hopped aboard the affordability trend and expanded their menu to include items meant to appeal to those looking for affordable, high-quality meal options. How did they decide what items to include, and have their franchisees embraced the change? Read on to find out.
Fat Bastard Burrito
To offer its guests premium food at attractive price points, MBI Brand’s Fat Bastard Burrito, the company’s Mexican-inspired quick service restaurant, has been brainstorming innovative ways to satisfy franchisees and customers alike.
One of Fat Bastard Burrito’s top priorities when deciding how to introduce enticing yet affordable options to its menu is ensuring that the effort and cost to implement won’t be a barrier for its franchisees. The brand recently accomplished this by developing creative, craveable items priced at less than seven dollars that leverage the fresh ingredients all franchise locations already have—meaning they won’t have to invest in any additional supplies to fulfil the options.
“By finding a new way of taking ingredients we had—chips, salsa, and sour cream—for our new nachos, we didn’t add a single new [ingredient] to our stores,” explains Soha Dezfouli, vice president of operations. “We found you can bring in new products and add lots of items with what [franchisees] need to carry every single day.” This also allows the brand to stay true to its authentic Mexican vibe, which it proudly promotes in its branding.
Since the nachos launched in July, the feedback from guests has been overwhelmingly positive. “The results were significant—it’s beyond our expectations,” enthuses Dezfouli, pointing to the fact that its easy assembly—taught to location staff through head office-issued training materials—and fast turnaround make it a win-win for franchisees. For guests, the biggest draw is the price: a cool and economical $6.99.
Fat Bastard has also released beef empanadas, which are again made with items already in its locations to reduce the impact on day-to-day operations. After realizing that they weren’t giving this launch enough love, the brand began heavily promoting the snack over the course of the summer, and sales have begun to increase. Now, Dezfouli reports, the product is a “big success” as well.
Initially, the brand was bewildered that its franchisees were asking for these cost-effective items—but once head office dove into the “why” of it all, the reasoning became clear.
“I was really surprised to see that our franchisees were asking for something that is more affordable,” she shares. “[The nachos] aren’t a side, and it’s not a full menu item. It’s something in-between—you can have them for lunch and be full, and you can have it on the side and enjoy it, too.” This is an important distinction because Fat Bastard considers itself a mid-priced quick service restaurant: not the cheapest burrito in the game, but certainly not the most expensive.
Having lower-priced items available to hungry guests provides a balance to their menu that some customers may have felt was lacking. Plus, by promoting these affordable items through its app, third-party delivery services, and other standard marketing channels, the lower price points can attract an all-new audience.
Potential menu additions are discussed at regular meetings, and feedback from Fat Bastard’s council of franchisees, comprised of long-term and multi-unit franchisees, is taken into consideration. In fact, Dezfouli noted that the group is in talks regarding another affordable menu item, which will hopefully be released later this year.
Encouraging open communication has long been an approach that the brand has used on the franchise side of the business, which benefits the whole system, overall.
“It’s a partnership,” Dezfouli says of the franchisor-franchisee relationship. “I try to tell our team that we are the support system. We’re not the head office: we’re the support system that makes sure their business is growing.”
Wendy’s Canada
Ask Lisa Deletroz, Wendy’s senior director of marketing for Canada and Europe, what spurs changes to the burger brand’s menu and she’ll point to the people who both the franchisor and its franchisees recognize as the company’s true tastemakers: its devoted diners.
“Wendy’s is clear in the way it has committed to freshness on all fronts, including providing customers with fresh deals,” she says, noting that the re-addition of familiar menu items with lower price points, such as its 99-cent Frosty and $3.49 nuggets, were in response to customer feedback. Another recent addition, the brand’s two for $4 mix-and-match breakfast promotion that launched in spring of this year, helped introduce dedicated fans of Wendy’s lunch and dinner options to its latest foray into breakfast. With this offer, customers could select two items—either an English muffin sandwich, breakfast wrap, biscuit sandwich, seasoned potatoes, or a hot coffee—for less than five bucks, a deal that’s a welcome relief for the many Canadians who are feeling the financial pinch.
But value offerings are nothing new to Wendy’s. Fans of the restaurant are more than familiar with its Quality Choices menu which has for years set the brand apart from others in the sector, says Deletroz. Items currently on the list include classics like a Jr. Bacon Cheeseburger and six-piece crispy chicken nuggets, providing customers with ample accessible options, whenever cravings strike. “We understand that sometimes our customers just need a filling and affordable snack, or to make a more filling meal,” explains Deletroz.
Other ways they provide added value throughout the year is by aligning promotions with recognized commemorative days, such as National French Fry Day—that’s the second Friday in July, for those who want to mark their calendars. And a new rewards program, launched in 2022, encourages Wendy’s most avid customers to rack up points by ordering from the burger giant.
A healthy relationship between the franchisor and its franchisees is what Deletroz credits with Wendy’s collective success, especially when speaking to its value-added items. “We work in close partnership with our franchisees to create value offerings our customers crave, ensuring they are available at a national level across the country,” she says. But the focus isn’t just on national campaigns. “We also provide localized direct mail coupon drops regionally across markets in partnership with franchisees.”
In the end, it’s Wendy’s commitment to delivering quality at a decent price that has allowed the brand to flourish in the face of an economy that many Canadians are feeling is an uphill battle.
“We know the customer value equation extends beyond just a price point and includes Wendy’s Canada’s commitment [to] fresh-made, quality food,” says Deletroz. “We’ve heard positive feedback from consumers on how we serve up the best value and will continue to work with our franchises to ensure we are meeting customers where and how they want to enjoy their favourite Wendy’s menu items.”
Taco Bell Canada
The words “Taco Bell” are often synonymous with good, affordable food. But even this giant of craveable eats has felt the call from its customer base to deliver even more inexpensive options.
“Canadians are always looking for value offerings from their favourite restaurants,” Devon Lawrence, marketing director at Taco Bell Canada, tells Franchise Canada. “At Taco Bell, we seek opportunities to bring new and beloved items to our menu at an affordable price point.”
In 2024, this meant rising to the occasion via a series of budget-friendly offers. First up was its Build Your Own Box (BYOB) value meal, available for a limited time, which allows diners to customize their own deal by selecting a specialty item (such as a Crunchwrap Supreme), a classic item (like a crunchy or soft taco), a side, and a medium drink. For those who are looking for a simple snack rather than a hearty meal, Taco Bell’s Cravings Value Menu, a permanent fixture that is available in-store only and with a selection of items at $3.50 or less, may hit the spot. The brand hinted that it will be bringing two fan favourites back to its value menu lineup a little later this year—keep your eyes and ears peeled to find out what. And looking ahead to the fall, Taco Bell also has plans to reveal a new $4.99 meal deal featuring a brand-new main item, plus a drink and side.
“We don’t think customers should have to sacrifice fun for value and are really excited to be able to bring excellent value and new and exciting products together for our fans,” explains Lawrence.
As popular as the new additions are with customers, Taco Bell franchisees have also thrown their full support behind the launches. In fact, the brand works hand in hand with its location owners to determine what offerings would resonate most with its audience.
“Before introducing a new item like BYOB, we align with our franchisee partners to make sure we’re offering relevant promotions and respecting the business model,” says Lawrence. “We also connect with our U.S. team to see what’s resonating with customers south of the border and keep an eye on local trends to stay relevant in our offering.” This approach ensures that all parties are invested in the releases and further establishes that its franchisees are as dedicated to new developments as head office.
In fact, franchisees spurred on the recent menu changes after sharing customer feedback with the Taco Bell team. “Franchisees came to us earlier this year with a desire to incorporate more value-based offerings into their menus to keep up with the offers we’re seeing in market,” says Lawrence. “We’ve been focused on delivering more options and are excited to continue the momentum with upcoming fall launches.”
When it comes to new-item pricing, while there is typically a set price, franchisees will sometimes have the flexibility to adjust prices to align with market nuances. “When we do have a set price, we ensure our franchisees are aligned to that price point,” notes Lawrence.
Going forward, standard offerings like those showcased on Taco Bell’s Cravings Value Menu will continue to satisfy customers’ tastebuds as well as their desire to save money. Since its launch in 2023, the menu has expanded from four to seven offerings, and fans of the brand can look forward to enjoying more new or new-to-them fan favourites over the coming months. As Lawrence says, “Offering consumers a unique experience at a great price is the foundation we’re built on, and we are thrilled to continue to deliver on great prices and new products for years to come.”
