Fast food is expensive. Applebee's and Chili's are moving in

As fast food prices rise, sit-down chains like Applebee's and Chili's are seizing the opportunity to attract cost-conscious consumers by offering comparable or better deals. Applebee's CEO John Peyton highlights their $9.99 burger as a competitive alternative to pricier fast food options. Chili's is also actively promoting its value, emphasizing the quality and size of its meals in comparison to fast food through targeted advertising and social media campaigns.

This strategic pivot comes as both fast food and dine-in restaurants face a shrinking customer base due to economic pressures and rising prices. Fast food chains have seen significant price hikes, with a 5% increase over the past year, making them less appealing to lower-income consumers. In response, chains like McDonald's are exploring new value menus to retain customers. Meanwhile, Applebee's and Chili's are focusing on showcasing their value and dining experience to capture a larger market share.