A Burger King Whopper is shown on April 05, 2022 in San Anselmo, California.
Justin Sullivan | Getty Images
More customers of Burger King and its subsidiary brands are redeeming coupons and rewards from the loyalty program as inflation raises menu prices.
Restaurant Brands International CEO Jose Sil told CNBC that the company hasn’t seen a significant change in what diners are buying from its restaurants. Its chains, which include Popeyes Louisiana Kitchen and Tim Hortons, raised menu prices this year to mitigate rising costs for key ingredients like chicken and coffee.
But Cil noted that in the broader fast-food sector, lower-income consumers are spending less of their money on burgers and fries, while higher-income diners appear to be forgoing brick-and-mortar or fast-food restaurants. KFC owner Yum Brands, McDonald’s and Chipotle Mexican Grill recently told investors they see the trend emerging.
Instead of selling fewer combo meals, Restaurant Brands eateries are seeing an increase in customers redeeming paper coupons and loyalty program rewards to lower the cost of their meals.
“It suggests that people are looking for good value for money,” Sill said.
Burger King has ditched paper coupons in recent months in an effort to get those consumers to download its mobile app and join its loyalty program. In exchange for redeeming their points for free menu items, the burger chain learns more about its customers and how to target them more effectively with promotions and deals.
The strategy is part of a broader turnaround for Burger King’s US business, which has struggled to keep up with rival burger chains in recent quarters. Restaurant Brands plans to unveil a plan to revive the business in September.
Shares of Restaurant Brands rose more than 6% in afternoon trade after the company reported improved demand for Tim Hortons coffee and growth in international sales at Burger King.
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