Dive Brief:
- Moe’s Southwest Grill added a $9.95 value meal to its menu, according to a Monday press release. The brand confirmed in an email to Restaurant Dive that the value meal is a permanent addition.
- The Moe Value Meal consists of a Junior Burrito, a two-ounce queso side and a drink. The Junior burrito has the same amount of protein as a regular burrito, according to a social media post from the brand promoting the deal.
- The value competition is spreading from fast food brands like McDonald’s into the fast casual sector, as price sensitivity weighs on restaurant traffic across segments.
Dive Insight:
Moe’s value meal could help the chain insulate itself from competitors in both the QSR and casual dining, which have leaned on value as a way to drive traffic. Moe’s framed the value meal as a throwback to an era of lower restaurant prices.
“In today's world, it feels like $10 doesn't go very far,” Mike Smith, Moe’s chief brand officer, said in the press release. “We're proud to offer our guests a full, delicious meal that doesn't break the bank.”
To promote the meal deal, Moe’s is running a digital promotion, styled after a game show, that invites consumers to guess how much $10 could purchase in the year 2000. According to the Bureau of Labor Statistics inflation calculator, $10 in August 2000 had roughly the same purchasing power as $18.75 today. The digital game runs through Oct. 5, with one grand prize winner securing a year of free Moe Value Meals, 1,000 runners up winning one free meal, and all participating players winning a 20% off discount on one value meal.
The Mexican fast casual sub-sector is seeing an increased emphasis on value, as discount actions by casual dining brands like Chili’s, and QSR giants like Taco Bell, put pressure on the segment from both directions. Chipotle, for instance, has started running ads that emphasize its entree pricing, which is often price competitive with QSR combos and cheaper than entrees at fast casual competitors outside the Mexican sub-sector.
