Source: NYT > Business (paywall)
QSR operators are abandoning the middle-market positioning that defined much of the casual dining sector, instead creating deliberately bifurcated menus that serve both cost-conscious diners and those willing to spend for perceived quality. This barbell strategy—offering $5 sandwiches alongside $18 entrées—reflects real consumer polarization: post-inflation wage stagnation has fractured the once-stable middle class, making single-price-point strategies commercially risky. Premium offerings carry disproportionate margins while loss-leader basics drive traffic; chains like Chipotle and McDonald's have already validated this model, pressuring rivals to follow or lose share to players willing to serve both segments.