Limited-Service Restaurants NAICS 722513

Nov 14, 2025 - Value Deals Pay Off

• McDonald’s' focus on value is paying off at a time when consumers are cutting back on spending, The Wall Street Journal reports. The burger giant reported a 2.4% increase in US same-store sales in the latest quarter after boosting spending on value meals, new products, and marketing, according to WSJ. McDonald’s aggressive value push is a stark turnaround from recent years when the company hiked menu prices, a policy that eventually drove price-sensitive and younger diners away. Now, according to the company, Extra Value Meals account for around 30% of US transactions. And while the investments are a drag on profits in the short term, the chain is betting they will get consumers to believe McDonald’s is a good deal again. McDonald’s success comes as rivals, notably Wendy’s, are struggling. Fast-food foot traffic is down 2.3% this year, according to research firm Black Box Intelligence.
• International restaurant chains are coming to America, infusing the restaurant sector with fresh tastes, Nation’s Restaurant News reports. While it may seem like an unlikely time to test a US market beset with rising labor and food costs and shrinking consumer spending, foreign chains view the move as a kind of stress test and validation for their brands, according to NRN. The sector is seeing especially strong momentum from Asian brands, Chinese and Korean in particular, importing bold formats that feel fresh in the US but are mature at home. For example, Lotteria, one of the most famous South Korean quick-service chains, brought its shrimp burgers and shaker fries to California for the first time this year. Another newcomer is Canada’s Big Way Hot Pot, which opened its first four US locations in Los Angeles this summer and is planning to add at least 10 more nationally, per NRN.

• Younger consumers are cutting back on spending, with restaurants among the first to feel the impact, two new studies show. According to the semi-annual Taking Stock with Teens survey, teens’ annual spending has declined by 6% year-over-year and is 1% below the average spending levels from the past 10 years. Also, research from investment bank TD Cowen finds that consumers ages 18-34 are under more pressure than the average consumer. The pullback among younger consumers, who make up about 40% of all restaurant guests, has major implications for the industry, especially the fast-casual segment, which relies heavily on younger guests. Restaurants are attempting to “future proof” their positioning by rebranding or launching youth-focused loyalty, digital, or campus initiatives to maintain engagement with younger audiences. Operators may need to rethink marketing, menu pricing/value tiers, loyalty incentives, and targeting to shore up revenue during lean times.
• McDonald’s has split with the National Restaurant Association over its support for the no-tax-on-tips policy, Nation’s Restaurant News reported in September. The CEO of the fast food giant Chris Kempczinski said in a recent interview “The issue with no tax on tips is it only benefits those restaurants that have tips.” Instead, he suggested a blanket minimum wage for both tipped and non-tipped employees. Central to the dispute is the tipped minimum wage — just $2.13 an hour under federal law — which allows full-service restaurants like Chili’s and IHOP to rely on gratuities to fill the gap to $7.25. McDonald’s has seen its market share shrink in the face of stiff competition from full-service casual chains that rely on tipped wait staff. That uneven playing field has helped those chains offer cheap burger deals that are eroding McDonald’s sales.