A new limited-time offer or permanent menu item may seem like an ephemeral delight in an industry where products come and go from season to season and year to year — but menu innovation is a key point of competition. Ambiance, branding and packaging all are secondary to the taste and quality of a dish or a drink.
Changing the menu alters the strategy of a restaurant. As brands back off of pure value plays after years of margin-compressing discounts, LTOs and new menu launches are more indicative than ever of the competitive trends in the restaurant industry.
The last two months have seen an intensification of several trends in menu development. Brands are prioritizing quality, foremost, at least in their marketing, and are investing in new versions of core classics. Bloomin’ is making steak quality a key element of Outback Steakhouse’s turnaround.
IHOP brought back its Stuffed French Toast, this time with more vanilla sweet cream, in an effort to meet consumer nostalgia with a premium product. Burger King is remaking its chicken nuggets, shifting to a juicier and crispier formulation; the changes are similar philosophically to the improvements to the Whopper announced last winter.
On another strategic front, both Popeyes and KFC are testing new dayparts and occasions.KFC’s snack buckets are a clear play for afternoon convenience occasions, and while Popeyes isn’t generally open for breakfast, its new biscuit sandwich sure looks like a breakfast menu item.
Other brands are leveraging flavor trends and successful LTOs to develop new menu platforms. Noodles & Company, for example, made ramen a permanent menu category after its ramen LTO drew hundreds of thousands of customers. Taco Bell is looking for a beverage win with an horchata test.
Catch up on nine of the biggest menu moves from the last nine weeks — each one signals a unique evolution in corporate strategy.