IHOP is doubling down on value as the battle for price-conscious consumers heats up.
The pancake chain on Monday launched its first everyday value menu, called simply the IHOP Value Menu. It features four breakfast combos priced at $6 in most markets, and will be available every day from 7 a.m. to 10 p.m.
The offering is not entirely new. It is a rebranding and extension of IHOP’s House Faves menu, which launched last October. House Faves featured the same menu items and price as the new value menu, but was only available Monday through Friday.
During his frequent “listening tours” at IHOPs across the country, IHOP President Lawrence Kim said he heard from customers that they were looking for even more value from the chain.
“There’s a common thread that I’ve been seeing, and that is, in these uncertain times, there is want and need for greater value,” Kim said in an interview.
So the brand decided to make its value menu available every day, while also changing the name to make the purpose of the menu even more clear.
“You don’t even have to think about it,” Kim said of the new name. “It’s just straightforward, and that’s what our guests want.”
The move comes amid an intensifying focus on value across the restaurant industry. Earlier this month, McDonald’s brought back its Extra Value Meals program with lower prices, sparking a flood of discount offers from other chains.
Value has been an effective strategy for IHOP, where House Faves had been driving traffic during the week. Weekend tests also showed improvements in sales, traffic and profitability, which gave the chain confidence that it could expand the offering without cannibalizing sales, Kim said.
The Glendale, California-based chain has been working to reverse traffic declines. Same-store sales fell 2.3% in IHOP’s most recent quarter, though the chain had seen traffic increase each month of the year.
The four options on the IHOP Value Menu are:
•Breakfast Faves Combo: Two buttermilk pancakes, two eggs and two bacon strips or two pork sausage links.
•Ham & Cheese Omelette: Ham, jack and cheddar, and white cheese sauce, served with two buttermilk pancakes.
•French Toast Faves Combo: One slice of French toast, two bacon strips or two pork sausage links, and two eggs.
•House Scramble: Eggs scrambled with chopped bacon and jack and cheddar cheese, served with hash browns.
IHOP will support the new menu with a media campaign called “Happy Plates,” including a new TV ad directed by music video director Drew Kirsch.
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