Applebee's New CMO Is Betting Brand Can Beat Discounting
Applebee's is betting that brand, not just discounting, is the way to win a value-obsessed restaurant market — backing the shift with a new creative agency partnership as diners hunt relentlessly for deals.
When money is tight, every restaurant reaches for the same lever: price. The result is a race to the bottom where everyone shouts about deals and nobody stands out. Applebee's CMO Michelle Chin is arguing for a different path — using brand to make the chain matter for reasons beyond the cheapest plate.
The value trap
The casual-dining sector has spent recent years locked in a discounting war as cost-of-living pressure pushes diners toward the best offer. The problem with competing only on price is that it is easy to copy and impossible to own: the moment a rival undercuts you, your advantage evaporates and your margins go with it.
Applebee's answer
Chin's view, shared in a recent interview, is that value and brand are not opposites. The chain still needs to be competitive on price, but it also needs a reason to be chosen that a coupon cannot provide. To push that thinking, Applebee's has brought on a new creative partner in BBDO Chicago — a signal that it wants distinctive, memorable work rather than another round of deal-led messaging.
It is a timely bet. A growing body of marketing-effectiveness research argues that brands which keep investing in distinctiveness through downturns emerge stronger, while those that cut to pure promotion train their customers to buy only on discount. Once shoppers learn to wait for the deal, full price starts to feel like a rip-off.
The lesson for any value brand
The trap is not offering value — it is offering only value. If the sole reason anyone chooses you is price, you have no defence against the next competitor willing to lose more money than you. Brand is what lets you charge a fair price and still be picked.
For small businesses, the takeaway is to pair your offers with a reason to remember you. Run the promotion, by all means — but make sure customers can finish the sentence 'I go there because…' with something other than 'it was cheap'. Distinctiveness is the cheapest insurance a value brand can buy.
Quick FAQ
What is Applebee's new marketing strategy?
CMO Michelle Chin is prioritising brand-building alongside value, arguing the chain needs reasons to be chosen beyond price. It has appointed BBDO Chicago as a new creative partner.
Why is competing on price alone risky?
Price is easy to copy and erodes margins. If customers choose you only for being cheapest, you have no defence when a rival undercuts you.
Can value brands build brand equity?
Yes. Value and brand are not opposites — the strongest value brands pair competitive pricing with distinctive, memorable identities so they are chosen for more than price.
The most expensive mistake a business can make in a downturn is to compete on price alone. You train customers to only buy on discount, and you can never put the price back up. Spend a little on being memorable — it's the cheapest insurance there is. — Daniel Nikolla, Founder of Merx Marketing
Competing only on price teaches customers to wait for the deal — brand is what lets you charge fairly and still get chosen.
If you stopped discounting tomorrow, would customers still have a reason to choose you?
If you would like to know more about this topic, please contact us on danieln@merxmarketing.co.uk
Sources: Marketing Dive interview with Applebee's CMO Michelle Chin.
Related reading
Written by Daniel Nikolla, Founder of Merx Marketing Ltd and Marketing Minute
