Checkers & Rally’s CEO Chris Tebben says the fast-food industry’s value war is far from over, telling FOX Business that consumer demand for affordability has only grown more intense over the past two years as everyday costs continue to squeeze household budgets.
Tebben’s comments came as the chain pushes its $4 Unbeatable Meal Deal — priced at $5 in select markets — which bundles a Loaded Tender Wrap, Spicy Chicken Sandwich, or Classic Burger with Value Fries, eight Chicken Bites, and a 16-ounce drink. The promotion, first launched in May 2025, delivered a measurable boost to transactions, according to the CEO.
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“I think it was around the May timeframe in ’25 and certainly saw the consumer respond, and the trend in our transaction was much improved,” Tebben said.
Why value has become the industry’s defining battleground
The intensified focus on affordability reflects broader pressures on American consumers. Government data shows prices for food away from home have continued climbing over the past year, including at limited-service restaurants like fast-food chains. That puts operators in a difficult position: they face their own rising costs for ingredients, labor, and utilities, yet must keep menu prices attractive enough to convince diners that eating out is still worth the expense.
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“I think we’ve seen over the last couple of years the need for value continues to intensify and, let’s face it, consumers are continuing to feel the pressures of a lot of everyday necessities,” Tebben said. “That’s why affordability plays such an important role when they choose to spend some of that money for an away from home occasion.”
The response from Checkers & Rally’s is part of a wider industry trend. McDonald’s has leaned into its McValue platform and bundled meal deals, while Wendy’s has promoted its Biggie Deals lineup. The competition for budget-conscious diners has become particularly fierce in the quick-service restaurant segment, where even small price differences can shift customer traffic.
Balancing value with profitability
Tebben acknowledged that making the economics work is harder now than in previous years, given inflationary pressures on food costs. But he said Checkers & Rally’s has focused on improving its core food costs, giving the company more room to invest in value offerings without squeezing franchisee margins.
“Certainly what we’re trying to do with value… it’s certainly more difficult in today’s economic environment in terms of inflation and food costs to make that equation work,” he said. “We’re certainly trying to drive more than our fair share of consumer occasions with the value offering. And then we’re always mindful of that balance to have to make sure that it works economically for both us and the terrific group of franchisees that we have.”
For Checkers & Rally’s, the strategy does not mean permanently adding the discounted meal to its core menu. Instead, Tebben sees value in offering the promotion at strategic moments, responding to shifts in consumer routines and broader economic conditions.
“I’m not looking to necessarily have the meal deal be part of our core menu, but I certainly think we’re building equity and consumers have responded to it,” he said. “I would expect that you’ll see some version of this that will pulse in at different times for us as the macro environment demands.”
The latest iteration of the deal, which returned later in 2025 than the previous year, coincides with the back-to-school and Labor Day period — a time when many families are resetting budgets after summer spending.
Beyond price: quality and experience matter
Tebben stressed that value extends beyond the price tag. Checkers & Rally’s has been working to improve food quality, speed of service, and the overall customer experience as part of a broader turnaround effort for the two brands.
“I think we’ve made a lot of improvements there. We still have a lot of work left to do to fully turn the brands around,” he said. “But it can’t just be value and affordability. And then the guest comes in and doesn’t get a delightful experience. So it has to be the magic of the end.”
For Tebben, affordability remains a core part of the brand’s identity, but the goal is to ensure price never becomes the reason a customer chooses a competitor.
“When it comes to the price component of your value offering, the way I like to think about it is that I never want affordability to ever be a barrier for someone choosing us,” he said. “But if someone goes somewhere else because they don’t think that we’re affordable, then I’ve done something wrong in my job. We’ve done wrong as a brand.”
As inflation continues to shape consumer behavior, the fast-food industry’s value battle shows no signs of cooling. For chains like Checkers & Rally’s, the challenge will be maintaining that delicate balance between attracting price-sensitive customers and protecting the bottom line.
This article is for informational purposes only and does not constitute financial advice. The restaurant industry and consumer spending environment are subject to volatility and changing economic conditions.
