Sponsored by Snapchat
As inflation strains household budgets, more Americans are cutting back on eating out. A 2024 LendingTree survey reveals 62 percent of Americans are eating less fast food due to rising prices, and 58 percent of Gen Z consider quick service restaurants a “luxury item.” As the cost of living increases and consumer budgets tighten, restaurants face declining same-store sales and visitation rates.
“Rising prices across the board, from inflation to higher wages, are squeezing franchisees margins,” says Joseph Tuckman, senior manager of restaurant vertical at Snapchat. “With food costs up and consumer spending down, dining out has become less frequent as prices have reached prohibitive levels.”
Offering value meals isn’t just smart, it’s necessary to win back customers. Value meals have long been a staple in quick-service restaurants, bundling popular menu items at a discounted price to attract budget-conscious guests.
Value meals alone aren’t enough to build lasting loyalty. Operators must capture the attention of customers where it matters most—and Snapchat provides a powerful platform to do so. 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 younger audiences, specifically Gen Z and millennials, who are known for frequent fast food consumption. According to Snapchat, its platform sees users open the app an average of 40 times a day, allowing quick-service restaurant brands to influence mealtime decisions from breakfast through late night. “Snapchatters are coming in and out of the app throughout the day,” says Tuckman. “Unlike other platforms where engagement is more focused on specific times, our community is always active, whether during the morning rush or late-night cravings.”
The constant engagement gives quick-service restaurant brands an edge in driving awareness, promoting value meals, and encouraging repeat visits. Brands have successfully introduced value meals using Snapchat’s core ad products like Snap Ads and Story Ads. Snapchat’s high-impact takeover products and immersive augmented reality experiences allow brands to deliver value messaging in a creative and engaging way, reaching customers when they’re actively deciding what and where to eat. “Quick-service restaurants that invest in augmented reality lenses alongside traditional ad products see increased reach, higher engagement, and more organic sharing,” Tuckman says. “It provides additional value and organically boosts campaigns.”
Additionally, Snapchat research found that Snapchatters are more likely to respond to value-driven promotions. Nearly 26 percent of Snapchatters say they’re most likely to purchase from a restaurant with a BOGO offer, while 24 percent are driven by rewards programs and 18 percent by discounts. Once engaged, these customers are also more likely to become brand advocates, with 33 percent of Snapchatters promoting brands online that offer rewards and discounts.
Quick-service restaurants need more than just discounts to stand out. There is a need for platforms that connect with the target audience on a deeper level. By leveraging Snapchat’s broad reach, immersive AR features, and strategic ad placements, restaurants can build stronger relationships. “Value might get this generation in the door, but Snapchat can turn them into customers who keep coming back.”
Visit Snapchat.com to discover how Snapchat can help reach more customers and boost loyalty.
By Olivia Schuster
