Dive Brief:
- P.F. Chang’s launched a new nationwide menu on Wednesday featuring a collection of $8.99 cocktails, the full-service Asian chain said in a press release.
- The revamped menu includes new hand-rolled sushi, the return of Garlic Noodles, half-sized appetizers, and a choice between medium or traditional entree sizes, the chain said.
- P.F. Chang’s is the latest casual chain expanding its menu with lower-priced menu items and small portions. Olive Garden said last week that it’s testing various entrees in smaller portions at reduced prices. IHOP made its $6 value menu available daily. Chili’s value proposition, including menu items like 3 for Me, has helped drive record-breaking sales and traffic numbers the past few quarters.
Dive Insight:
The latest menu options are part of the chain’s ongoing strategy to offer lower-priced items across its dayparts. Earlier this year, it debuted P.F. Chang’s Lunch and Dinner Specials with lunch specials starting at $13.99, including a soup or salad, appetizer, base and personalized entree portion, according to the press release. The chain’s dinner specials start at $16.99 and allow guests to mix and match starters, bases and entrees, choosing from 12 options.
Half-sized appetizers and different entree portions also enhance the chain’s value proposition. A half portion of Chang’s Chicken Lettuce wraps cost $9.29 versus a full-size portion at $16.59 at a P.F. Chang’s in Fairfax, Virginia. A medium portion of the Mongolian Beef entree costs $20.99, versus $27.29 for a traditional portion.
Offering less expensive options could help boost traffic at the chain, especially since traffic related to value menus rose 1% during the quarter ending in June, according to Circana. Comparatively, overall foodservice traffic dropped 1% during the same period. P.F. Chang’s has experienced a decline in traffic this year, with traffic down 5% in May compared to August 2024, according to Placer.ai data.
This value push is one of the first major initiatives under Brad Hill, who was promoted from P.F. Chang’s COO to CEO in April. In his previous position, he helped then-CEO Eduardo Luz boost the brand’s positioning in the casual dining sector and better prepared the chain for long-term growth.
