Meal deals have emerged as a significant offering in the foodservice sector, particularly at quick-service restaurant (QSR) establishments, where they are characterized by a combination of a main item such as a burger or a sandwich, a snack, and a beverage, sold in combination at a lower price than the sum of the individual items. This pricing strategy makes meal deals attractive to consumers seeking affordable lunch options, especially during challenging economic times marked by rising inflation. Originally invented to entice consumers during high inflation, meal deals have become mainstays on restaurant menus in the Asia-Pacific (APAC) region, says GlobalData, a leading data and analytics company.
Bokkala Parthasaradhi Reddy, Lead Consumer Analyst at GlobalData, comments: “Despite the economic pressures from inflation, the meal deal market has shown resilience. The hybrid working patterns post-pandemic have made it difficult for retailers and foodservice operators to predict demand for weekday lunches. However, meal deals remain a popular choice among workers and students, indicating that they fulfill a need for convenience and value. The prevalence of meal deals is also notable at QSR outlets, where they now rank among the most popular menu items, appearing in over half of restaurant menus”
Deepak Nautiyal, Consumer and Retail Commercial Director, APAC and ME, GlobalData, notes: “The appeal of meal deals extends beyond mere affordability. Consumers, particularly those with financial concerns, are increasingly looking for options that deliver on taste, quality, and variety. This shift has led some operators to innovate by offering high-quality meal kits or unique dining experiences that enhance the meal deal proposition. The combination of value, convenience, and quality is crucial in attracting a diverse consumer base, including those who may visit restaurants less frequently but seek indulgent experiences when they do.
“Younger consumers, particularly Gen Z, are more likely to seek out affordable alternatives when dining out. They are influenced by promotions and meal deals that not only offer financial savings but also align with their personal preferences and lifestyle choices. This demographic’s inclination towards meal deals emphasizes the necessity for foodservice brands to innovate and adapt their offerings to meet these demands. This is reinforced by the 27% of 18–24 demographic claiming that how well the product/service aligns with “their time and money constraints” always influences their decision, while an additional 33% stated that it often influences their decision^.”
Reddy concludes: “Meal deals represent a vital segment of the foodservice industry, and significantly impact consumer spending behavior by providing a sense of value and affordability that is increasingly necessary in today’s economic climate. Foodservice operators must continue to innovate and tailor their offerings to meet the evolving needs of consumers, particularly those who are more price sensitive. effectively balancing consumer demand for affordability with the need for quality and convenience. As economic conditions evolve, the adaptability of meal deals will likely continue to play a crucial role in consumer dining choices.”
^ GlobalData 2024 Q3 Consumer Survey – Asia & Australasia, published in October 2024, with 6,471 respondents
