QSRs redefine value as consumers grow more selective

Consumers are staying cautious post-inflation.

The quick-service restaurant (QSR) industry is entering a new phase where value, not just price, will define competitiveness, according to Mitchell Taylor, Partner and Managing Director Australia at Simon-Kucher. Speaking on the sidelines of the QSR Media Conference & Awards 2025, Taylor said the sector is transitioning from a post-pandemic price surge toward a period of consumer recalibration.

“It’s been an interesting year. I feel we’re kind of in the plateau between two periods with consumers,” Taylor said. “We’ve come out of a very high price increase, cost inflation period post-COVID.”

Although inflation pressures have eased, consumer behaviour remains cautious. “Consumers are still getting used to changes to household budgets,” he noted. “People still aren’t coming out in droves, back to restaurants like they were before.”

Taylor said this shift is forcing QSRs to compete not only on price but on perceived value. “It’s been a really strong game of price, value and service offer in 2025,” he explained. “The value equation is more than just price—it’s how they can offer different service levels, menu items or experiences to drive traffic back to the store.”

Looking ahead, he warned that traditional promotions no longer guarantee results. “Consumers have become a lot smarter,” Taylor said. “They’ll compare promotions across the board… and you don’t get any kind of long-term results from that.”

As the industry moves toward 2026, Taylor sees technology as a key driver of efficiency. “There’s lots of AI solutions going on from customer service to back-of-house operations management,” he said. “As costs continue to increase through 2026, there will be pressure to take price with consumers, but smart restaurants will focus on improving that value perception.”