The Financial Post reports in its Wednesday edition that as Restaurant Brands International saw its profit rise 18 per cent in its latest quarter, its chief executive officer noticed a broader trend taking hold across the industry: slowing sales. A Canadian Press dispatch to the Post says that RBI's Joshua Kobza says consumers have become "a bit more sensitive to price," pressuring the fast-food sector, even though inflation is easing. The shift in behaviour has left chains looking to drive more traffic to their restaurants and convince customers to drop a bit more money on every order. Mr. Kobza tempered expectations around how far the Toronto company will go to counter some of the price sensitivity. "We know value is also top of mind, and while there are a few tactical things we can do on the margin, you should not expect us to reinvent the wheel on value," he told analysts on a Tuesday call. Tim Hortons's approach to value has long rested in its focus on pricing menu items lower than competitors, but in recent years, it has bolstered the strategy with the launch of affordable "any time snackers" like savoury pinwheels and flatbread pizzas priced as low as $6.99. RBI's Burger King has had success with its $5 Duo Deal.
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