By Charles Passy
The connection between inflation and free offers at popular chains like McDonald’s, Wendy’s, and Domino’s is intriguing. While these companies are giving away free items, they are still finding ways to profit from consumers through other means.
The latest example is Krispy Kreme’s giveaway of a dozen original glazed doughnuts to the first 500 customers at each store on World Kindness Day. This generosity is part of a larger trend in which restaurant chains are offering various freebies, although many of these deals come with conditions.
For instance, Wendy’s has gone viral with its offer of free six-piece chicken nuggets every Wednesday with the purchase of any other item. Meanwhile, McDonald’s is bringing back its “Free Fries Friday” promotion, giving customers a free medium-sized French fries order with any $1 purchase on the restaurant’s app. Domino’s has also announced a free “emergency” pizza offer, requiring a qualifying online order.
Altogether, these freebies add up to millions of dollars in value, on top of the regular discounts and deals offered by these chains.
The growing trend of free promotions is being driven by inflation, with consumers actively seeking value in response to rising prices. As Mark Kalinowski, a veteran fast-food analyst, explains, customers are now more focused on finding value than in previous years.
Chains are utilizing these promotions to encourage customers to engage with their digital platforms, such as mobile apps, which can lead to larger orders. The goal is not just to offer something for free, but also to build ongoing customer relationships by leveraging these digital channels.
According to Dave Skena, Krispy Kreme’s chief global brand officer, the company is banking on the positive response to their free offerings translating into future paying visits. While Krispy Kreme’s approach stands out for not requiring customers to use their app, most other chains tie their freebies to digital or online orders.
However, there are risks involved in offering freebies, as seen in McDonald’s past experience with Olympic promotions resulting in a significant financial hit. It’s a reminder that customers should always carefully read the terms and conditions of any offer.
In conclusion, while these promotions may seem like a win for consumers, they also serve as a strategic marketing tool for these chains in navigating the challenges of today’s economic environment.
-Charles Passy
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
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11-13-23 1024ET
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