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Fast Food Chains Turn to Collectibles to Drive Sales
Lifestyle

Fast Food Chains Turn to Collectibles to Drive Sales

Business Insider2d ago
3 min read
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Key Facts

  • ✓ Approximately 40% of US consumers are considered value-seekers.
  • ✓ 44% of adults say they are likely to purchase restaurant-branded apparel.
  • ✓ 65% of millennials and 55% of Gen Z adults report interest in buying restaurant-branded items.
  • ✓ Merchandise allows chains to use 'full-margin promotions' without discounting food prices.

In This Article

  1. Quick Summary
  2. The Rise of Retail in Fast Food
  3. The Economics of Scarcity
  4. Identity and Marketing
  5. Conclusion

Quick Summary#

Fast food chains are increasingly relying on limited-edition merchandise like collectible cups, tote bags, and keychains to attract customers and drive revenue. This strategy allows restaurants to signal value and create urgency without resorting to unsustainable menu discounting. Experts note that the approach taps into consumer fear of missing out (FOMO) and serves as a form of identity expression, particularly for younger generations.

Brands such as Starbucks, Dunkin', and Chick-fil-A have successfully utilized scarcity to generate social media buzz and repeat visits. With operating margins remaining tight, these retail promotions offer a high-margin revenue stream that also functions as free marketing. Industry leaders agree that this trend represents a shift toward emotional branding and is likely to persist even as economic conditions improve.

The Rise of Retail in Fast Food#

Limited-edition cups, tote bags, and cartoonish keychains have become the latest weapon in the restaurant industry's battle for consumer attention. As restaurant margins remain tight and consumers become more price-sensitive, chains are expanding their retail offerings. They are increasingly turning to collectible merchandise as a way to signal increased value without resorting to discounting.

The strategy taps into consumers' fear of missing out as well as their sense of identity, especially for younger generations who see brands as social signals. This approach drives repeat visits, loyalty sign-ups, and viral buzz. The result is a low-cost, high-impact method that helps restaurants stay culturally relevant even as dining habits shift.

Starbucks' Bearista cups serve as a widely visible example. Released in limited quantities around the holidays, the cups sparked lines, sellouts, and sky-high resale listings. Crucially, they generated social-media chatter that had little to do with coffee itself.

"If you tell us that something is scarce in supply, we desire it more."

— Ernie Ross, Founder, Ross Advertising

The Economics of Scarcity#

Experts indicate that the current economic climate is accelerating this strategy. Deloitte principal Evert Gruyaert noted that restaurants operate in a value-driven environment where about 40% of consumers in the US are considered value-seekers. While many chains bolster value menus, continued discounting is not a viable long-term plan because restaurants operate on very thin margins.

Collectible merchandise offers a workaround. Gruyaert refers to these as "full-margin promotions." This allows chains to charge full price for a meal while providing an extra item that drives traffic and frequency. Dunkin' recently used this logic with a mini tote bag promotion for loyalty members, while Chick-fil-A launched branded reusable cups with a chance to win free meals for a year.

Branding agency founder Ernie Ross explained that scarcity reliably shifts consumer behavior. "If you tell us that something is scarce in supply, we desire it more," Ross said. He noted that seeing a group line up for an item creates a natural instinct to join, harnessing predictable "queueing" behaviors.

Identity and Marketing#

Merchandise serves a dual purpose: it extends the brand and operates as free marketing. National Restaurant Association Chief Economist Chad Moutray pointed to survey data showing that 44% of adults are likely to purchase restaurant-branded apparel. Among younger consumers, the numbers are even higher, with 65% of millennials and 55% of Gen Z adults reporting the same appeal.

For Gen Z, brands are a form of identity and social expression. Chains are tapping into internet culture, as seen with Jack in the Box's "Jibbi" keychains, which echo the viral Labubu aesthetic. Cross-brand collaborations, such as Chipotle's line of college dorm decor with Urban Outfitters, further amplify this effect by combining brand reach.

Ross framed this as a shift toward emotional rather than purely functional branding. "Something only has a value in the meaning attributed to it," he said. Collectibles create a "currency of conversation," allowing brands to earn attention before discussing menus or pricing.

Conclusion#

The expansion of retail offerings represents a fundamental shift in how fast food chains compete. By leveraging scarcity and cultural relevance, chains are finding a sustainable way to maintain margins while satisfying consumer demand for value. The strategy effectively turns customers into walking advertisements and drives the loyalty necessary for long-term survival in a squeezed market.

Experts agree that this trend is not a temporary fad. As Chad Moutray noted, it is "one of those ongoing trends that's going to continue." For restaurants, collectible merch has evolved from a novelty to a core component of their business model, selling belonging and brand loyalty one tchotchke at a time.

"We call these full-margin promotions. You can still charge the full price of your meal, get your full margin on that, but you just get something extra."

— Evert Gruyaert, Principal, Deloitte

"Something only has a value in the meaning attributed to it."

— Ernie Ross, Founder, Ross Advertising

"For Gen Z, brands are actually a form of identity and social expression."

— Evert Gruyaert, Principal, Deloitte

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