Creating Lasting Value in QSR

Hot on the heels of Domino’s Q1 earnings report, it’s impossible not to contemplate the challenging economic headwinds ahead for the QSR sector. Supply chain woes triggered by larger concerns surrounding tariffs back in Q2 2025 ignited a fresh discount war across legacy brands and emerging concepts alike.

While many focus on the brand-level economics and Domino’s stock price, my mind immediately jumps to the unit-level pressure created by their  $9.99 “Best Deal Ever” promotion. While a killer deal might drive immediate traffic increases, it puts tremendous pressure on day to day operations and risks significantly reducing the long-term value proposition of your product.

Per the National Restaurant Association 2026 State of the Industry Report, food costs have risen 34% compared to pre-pandemic levels six years ago, requiring precision and care to balance the bottom line without turning customers away. With that data in mind, let’s look at how QSR Operators are responding to these issues besides discounting:

In 2025, to combat increased operating costs:

  • Pricing: A Double-Edged Sword: 85% of limited-service restaurants increased menu prices. Delivery prices rose nearly 80% higher compared to pickup orders, further driving friction for a specific customer who may not be as engaged with your restaurant’s four walls and has a plethora of options at their fingertips. Consumers are increasingly focusing on deals and overall value when making their dinner choices. 

When looking at price as a lever, ask yourself: are you providing the value your customers need to drive increased frequency? Are you masking a larger menu issue by using pricing to cover the entire cost spread? If you’re offering a discount, is it sustainable or merely a gimmick? Is your delivery pricing competitive, or is it inflated higher than necessary to combat additional fees?

  • Portion Size: A Cautionary Tale: 24% of limited-service restaurants adjusted portion sizes. In a vacuum, menu revisions are a totally normal part of running your business. When the economy shifts and customers feel the weight of every purchase, customers notice every ounce of protein in their entree. While upward pressure may make these changes unavoidable, tread carefully, especially if changes to portion sizes are accompanied by menu price increases. Is this an absolute necessity or are you simply hoping customers won’t notice this quick change? Customers can be quick to forget their daily lunch spot and slow to return once they feel priced out.

  • Consistency As A Differentiator: 46% of limited-service restaurants cut costs in “other areas of operation”. Aside from price and portioning, one of the most immediate shifts in cost a restaurant can make is to focus on cutting total labor spend. Without strategy, fixating on driving down labor as a primary means to improve the bottom line is one of the quickest ways to erode the guest experience and deteriorate employee morale. Engaged front line employees are the key to protecting your brand: whether you’re focused on delivering a stellar first experience at the POS, a perfectly portioned entree or an immaculate dining room during peak periods, these are the things customers will remember you by. 

    At Ready Aim Consulting, we’ve helped numerous Operators address these challenges and more. Starting with a menu contribution margin audit and a labor assessment, we will help you get your costs under control without compromising your product quality or guest experience.

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