How QSRs Can Stay Proactive Amid Economic Uncertainty in 2025

published July 23, 2025

Tariffs, supply chain volatility, and cautious consumer spending continue to impact sales and profitability across the QSR (Quick Service Restaurant) industry. In this post, I’ll break down how small-scale QSR operators can draw inspiration from leading brands by re-strategizing in four key areas to navigate rising costs, shrinking margins, and profitability challenges.

Let’s dive in.

1. Restructure Operations to Stay Nimble

Local Sourcing.

For QSRs relying on imports, local sourcing is no longer optional—it’s essential. Shake Shack, for example, began shifting to local farms and regional ranchers across the Midwest between 2023–2024. This move helped them hedge against rising tariffs, particularly since beef alone accounted for up to 30% of their food costs. Small-scale operators can adopt by forging new partnerships with regional producers to reduce dependency on imports and stabilize costs.

Lease Re-Negotiations.

While often unpublicized, many operators have renegotiated their commercial leases in response to declining foot traffic. Concessions have included reduced rent, fee waivers, or lease terms tied to sales performance. Exploring this option could unlock significant financial breathing room.

Tech & AI Adoption.

Large QSRs are rapidly adopting automation to offset labor and food cost pressures. Domino’s uses AI voice assistants for phone orders. Wendy’s launched FreshAI via a partnership with Google Cloud. Wingstop cut order times in half with its SmartKitchen platform. While small businesses may not have access to high-end robotics, they can still embrace scalable solutions—such as digitizing operational data, experimenting with low-cost kitchen tech, or integrating AI chat or ordering features on their websites.

2. Re-Engineer Pricing & Value Perception

Customer Segmentation.

Using data to understand and serve distinct customer segments is a proven strategy. Chipotle, for instance, targets value-conscious families, Gen Z, and health-conscious millennials through tailored campaigns like lifestyle bowls, family bundles, and influencer collaborations with creators like Alex Warren. While you may not have Chipotle’s budget, you can create simple segmentation strategies—like rewards tailored to lunch customers versus families or regulars.

Value Ladders.

Taco Bell’s “Cravings Value Menu” ranges from $1.49 to $3.49, while their combos span $6.99 to $13.79 with over 20 options. This layered approach appeals to both budget-conscious and higher-spending customers. Small QSRs can apply this concept by offering tiered value bundles or à la carte upgrades.

Downsizing Strategically.

Rather than raising prices outright, some QSRs are subtly reducing portion sizes while maintaining or lowering prices—a tactic that minimizes customer resistance. For example, El Pollo Loco’s “Creamy Chipotle Chicken Quesadilla” is noticeably lighter than the now-retired “Chicken Avocado Quesadilla.” At $7.49 (à la carte) or $9.99 (combo), it hits a fair price point while keeping margins in check.

3. Market with Positional Intent

Competitive Benchmarking.

Identify where your competitors fall short—and position your brand to win in that space.

One of my clients, for example, produces small-batch popsicle bars to preserve flavor integrity. In contrast, competitors rely on mass production, resulting in diluted taste—a point confirmed by former employees and customer feedback. 

Positioned as “Rich in flavor. Always small-batch. Never diluted.” creates a winning space where competitors simply cannot compete with. Positional intent.

Narrative Testing.

Don’t settle for one value message. Test a few positioning statements across platforms to see what resonates. Use digital ads, in-store signage, and email campaigns to evaluate which narratives drive engagement and sales.

4. Prioritize Repeat Purchases

Personalized Rewards Programs.

Many built-in POS loyalty tools are quick to implement but offer little control or brand distinction. A personalized program allows you to customize rewards, optimize offers based on behavior, and retain full control over branding and data insights. This is essential for driving repeat purchases—something generic programs fail to do effectively.

Value-Driven Offers.

Major chains in 2025 are leaning heavily into strategic bundling. Carl’s Jr. launched a “Build Your Own Bag” offer at $5.99. Wienerschnitzel offers “2 Chili Dogs + Medium Fries” for the same price. These bundles work across all business sizes and help boost ticket size without overextending costs. Small QSRs often overlook this tactic due to the creative and operational effort involved—but it’s a high-leverage opportunity when executed well.

Final words.

Despite economic uncertainty, small-scale QSRs can adapt the same strategies used by larger QSR brands at a more feasible pace by:  

1. Operational restructuring
   
2. Pricing and value re-engineering
   
3. Marketing with a positional intent
   
4. Prioritizing repeat purchases through loyalty and value offers
   

Markets are tightening, and those who stay proactive will be better positioned to capture market share when opportunities arise. It’s easier said than done—but the truth is, business is a competitive sport, built for those with the ambition and drive to succeed.