The parent company of Burger King said Thursday that rising prices due to inflation are driving more customers to use things like coupons or loyalty program rewards to offset the costs. File Photo by Mark Van Scyoc/Shutterstock
Aug. 4 (UPI) — The parent company of Burger King said Thursday, rising prices due to inflation are driving more customers to use things like coupons and loyalty program rewards.
The same holds true for the other major brands owned by Restaurant Brands International, which released its second quarter financial results Thursday.
The Toronto-based multinational fast food holding company also owns Popeyes Louisiana Kitchen and the Tim Hortons coffee and donut chain, as well as sandwich franchise chain Firehouse Subs.
The company’s thousands of franchises are seeing more customers redeeming coupons and loyalty program rewards to offset a more-expensive menu, according to its executives.
“It suggests people are looking for good value for money,” Restaurant Brands CEO José Cil said during a conference call to discuss earnings.
He said the company is attempting to usher those customers away from coupons and onto its brands’ mobile apps, where it still offers promotions and also gains digital information.
The company’s digital sales saw double-digit growth year-over-year, climbing to over $3 billion. Digital sales represented 33% of RBI’s system-wide sales.
Cil told investors a larger sector-wide trend is seeing lower-income customers spend less at fast food restaurants, while a different segment is frequenting the restaurants more often, moving away from pricier casual dining spots.
Fast food chains McDonald’s and Chipotle Mexican Grill said in July they have both experienced the same trend of customers trading down.
“We continue to see steady improvements in our Burger King U.S. business and will be sharing the details of our plan to accelerate home market growth with all of our franchisees in early September,” said Cil, referencing the company’s broader plan to revive the burger chain this fall.
Shares of Restaurant Brands International gained 7.4% on the Nasdaq by market close Thursday, trading at $59.09