Breakfast may be the most important meal of the day, but rising food prices are making it harder for many Americans to afford.
Higher grocery bills and restaurant costs are prompting more people to skip meals to save money, with 27% admitting to doing so, according to a Credit Karma survey.
The Bureau of Economic Analysis reports that food prices climbed nearly 25% from March 2020 to June 2024, while dining out became 26% more expensive.
Circana data shows that value menu traffic rose 1% in the quarter ending June 2025, a 2% increase from the prior year, marking positive growth for the first time in the last three years.
Still, overall traffic in the food service industry declined 1%. With fewer people eating out, restaurants now have to compete with fast-food chains’ prices by offering value deals to survive.
“Value buyers are 33% more likely than non-value buyers to purchase value menu items when visiting other restaurant chains, indicating they actively seek out deals across various brands,” Circana reported.
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IHOP introduces its first-ever permanent value menu
In response to the decline in breakfast traffic and same-restaurant sales falling 2.3% in the second quarter of fiscal 2025, Dine Brands Global’s (DIN) IHOP is introducing its first-ever permanent value menu with four classic breakfast options for $6 or $7 each, depending on the location.
The IHOP Value Menu is now available at participating restaurants nationwide from 7 a.m. to 10 p.m. seven days a week.
IHOP Value Menu options
- Breakfast Faves Combo: Two buttermilk pancakes, two eggs, and two bacon strips or pork sausage links.
- Ham & Cheese Omelette: Ham, jack & cheddar, and white cheese sauce, served with two buttermilk pancakes.
- French Toast Faves Combo: One slice of Classic Thick ‘N Fluffy French Toast, two eggs, and two bacon strips or pork sausage links.
- House Scramble: Eggs scrambled with chopped hickory-smoked bacon and jack & cheddar cheese, served with hash browns.
This launch follows a pilot of the Everyday Value Menu in March. It was available for a limited time in four U.S. cities before expanding nationwide in May due to its strong customer demand.
“At IHOP, we believe great food should be accessible to everyone, every day,” said IHOP President Lawrence Kim in a press release. “We know our guests are more value conscious than ever, so the launch of IHOP’s Value Menu is a direct response to what they want — delicious food, variety, abundance, and affordability without compromise.”
Restaurant chain rivals lean on breakfast value deals to win over customers
IHOP isn’t the only chain leaning on value deals to attract customers. Rival Denny’s just made a similar move by relaunching a limited-time “5 Slams Starting at $5” promotion nationwide, available through October 28.
The return of this offering comes as Denny’s faces ongoing challenges, including plans to permanently close around 150 locations and a 1.3% decline in same-restaurant sales during the second quarter of fiscal 2025.
Related: Fast-growing, cult-favorite chain cuts expansion, ends breakfast
Even fast-food giant McDonald’s (MCD) has struggled with a slowdown in its U.S. market over the last few years, particularly with foot traffic during morning hours.
“Morning now is a place that you’re seeing people are choosing either to skip breakfast or they’re choosing to eat at home for breakfast,” said McDonald’s CEO Chris Kempczinski during an earnings call.
To counter this concerning trend, McDonald’s relaunched its Extra Value Meals, offering six combo breakfast options, alongside other deals like the McValue menu and $5 Meal Deals.
The strategy appears to be working. McDonald’s U.S. same-store sales grew by 2.5% during the second quarter of fiscal 2025, proving fast-food chains still have the upper hand in providing value.
Related: Aldi CEO sounds alarm over major concerning price changes
