Last year was the year of value wars, with QSRs competing to win shares of customers’ wallets. According to Placer.ai, McDonald’s and Chipotle were the winners, with year-over-year traffic showing growth compared to 2023.
“Visits to McDonald’s were mixed throughout 2024, with most months seeing minor visitation lags relative to 2023. Still, YoY traffic trends outpaced those of the overall QSR segment in all but one month (October 2024), highlighting the chain’s power relative to the rest of the market,” reported research firm Placer.ai.
According to Placer.ai, some of the visitation dips at both McDonald's and the overall QSR segment are likely due to inflation impacting prices across the dining industry. This led to an increase in the number of value-seeking consumers, which McDonald’s capitalized on with the implementation of its meal deal.
Special releases also drove visits to the burger chain, Placer.ai reported: “The introduction of the Chicken Big Mac on October 10, 2024, proved to be a major success, driving a 7.2% increase in visits during the week of the launch (October 7-13) and an even larger 8.7% increase in the first full week following the release (October 14-20). The chain also enjoyed a jump in foot traffic from its limited-edition collector’s meal, launched on August 12th, 2024, further highlighting the effectiveness of these strategic, nostalgia-driven releases.”
Chipotle saw visits growing in all 2024 months analyzed, wrote Placer.ai. This included a “21.1% year-over-year increase in April 2024, followed by sustained growth throughout the remainder of the year, culminating in an 8.8% increase in December 2024 compared to 2023. In contrast, the broader fast-casual category saw much more muted visitation patterns.”
Some of Chipotle’s visit growth can be attributed to “the aggressive growth strategy the company has undertaken, opening approximately 300 stores in 2024 with plans to add another 300 locations in 2025,” reported Placer.ai. The chain also opened its 1,000th drive-thru location in 2024.
NACS Daily reported in December that Chipotle was raising its prices despite having positive sales. “The chain has been trying to balance higher costs for its avocados, queso and sour cream while maintaining its appeal to inflation-weary consumers looking for deals and discounts. In the end, the possible ‘modest’ price lift that the company was considering won out,” reported the Wall Street Journal.