Restaurant chains improve food to win back diners

Juicier chicken fillets. Sauces revisited. Richer, creamier frosties.

Across the restaurant industry, chains are returning their focus to their food in hopes that better quality will win back diners.

Over the past two years, consumers have dined out less often and become more picky about where they choose to eat, according to data from Black Box Intelligence. At that time, “value” was the buzzword for restaurant executives, who explained to analysts and investors that the word encompassed much more than just menu prices.

Today, industry CEOs are looking to their business leaders to try to beat their competitors on quality and taste, while seeking to expand their definition of value. Discounts and one-time promotions may increase traffic for a while, but the product itself remains important to the long-term growth of restaurants, as well as the profitability of franchisees.

From Wendy’s has Chipotle Mexican GrillExecutives have touted new or upcoming improvements to menu items during their quarterly earnings conference calls in recent weeks.

“We think the product has gotten better and better,” Chipotle CEO Scott Boatwright told analysts on a company call in late October, referring to the burrito chain’s brisket, which returned to menus for a limited time on Thursday.

For some chains, better nutrition is a key step in ambitious recovery plans.

For example, “quality food at real value” is one of the pillars of Wendy’s five-part turnaround strategy that the chain unveiled Thursday.

“We are also rebuilding our food offerings and have begun testing improvements to the quality and appeal of our core products, including thicker, crispier bacon, richer, creamier Frosty lettuce, whole leaves on sandwiches and enhanced salads,” Wendy’s CEO Bob Wright told analysts on the call Thursday.

The same day, the company reported its seventh straight quarter of declining same-store sales and publicly rejected a $1.4 billion takeover bid led by Nelson Peltz’s Trian Partners. Wendy’s said the proposal did not take into account the potential value its turnaround plan could unlock.

There is precedent to suggest that tastier foods can contribute to higher sales.

In 2009, Domino’s Pizza changed its recipe, replacing its sauce, adding garlic to its crust and switching to shredded mozzarella with a dash of provolone. Along with heavy-handed ads comparing old crust to cardboard and old sauce to ketchup, the changes helped spur U.S. same-store sales growth of 9.9% the following year.

Now, some members of the team that led Domino’s turnaround are copying the model at Burger King’s U.S. restaurants.

Part of the burger chain’s multi-year comeback plan has focused on revamping its core menu items. It started earlier this year with its flagship offering, the Whopper, which received a better bun and new mayonnaise. And in September, it overhauled its nuggets, switching to 100% white meat, crispier breading and a tastier marinade. She also reformulated her sauces.

“We tried to look at our biggest categories first,” Josh Kobza, CEO of parent company Burger King. International restaurant brandstold CNBC. “We also thought about those where the fixes are simpler and less operationally involved.”

As a result of these changes, Whopper’s sales increased by a double-digit percentage in the third quarter, Kobza said during the company’s earnings conference call in late October. And nugget sales increased by more than 35%. Burger King said its U.S. same-store sales jumped 8.4% in the quarter.

Like Domino’s, Burger King plays up diners’ past grievances with its Whoppers and nuggets in its ads, featuring Burger King U.S. president and former Domino’s executive Tom Curtis.

Tastier foods aren’t just for struggling chains.

Even Chili’s, which has seen its same-store sales climb 52% over the past three years, is further improving its existing menu options. After tackling his baby back ribs, burgers and nachos, he will then turn to salads and steaks, Brinker International CEO Kevin Hochman told CNBC.

“We’re going to dry-age our beef more to make it more tender, rather than doing it in a factory,” he said. “It’s a little more expensive, but we think it will taste much better.”

Chili’s rival Applebee’s launched juicier chicken in its latest quarter, according to John Peyton, CEO of the chain’s parent company. Restaurant brands. In 2027, Applebee’s plans to further revise its protein options.

“We think protein is, first and foremost, our biggest opportunity,” Peyton told CNBC. “Number two, they’re at the heart of how people are thinking about eating right now, relying on protein and a little less on carbs.”

Chicken is also a featured dish McDonald’swhich is testing hand-breaded wings, strips and a sandwich at a handful of Chicago-area restaurants. It plans to expand the trial to more sites in the United States and Ireland in early 2027.

Additionally, McDonald’s is trying to improve its coffee, with fresher beans and improved equipment, executives said at the company’s investor day in September. Chicken and coffee are fast-growing categories, offering more opportunities to increase sales than McDonald’s iconic beef burgers.

Although the burger giant isn’t in full recovery like rivals Wendy’s and Burger King, its U.S. business has struggled in recent quarters after its value strategy failed to achieve the traction the company hoped for. In the third quarter, its U.S. same-store sales fell 0.2%.

In addition to menu testing, McDonald’s also relies on training to improve the quality and consistency of its core menu items. Starting in October, the company launched “Make It Golden,” a multi-year training program for corporate employees, restaurant owners and franchisees.

Ultimately, improved menu items don’t mean much if the recipe changes aren’t executed well.