Applebee’s has made a major admission: Its famous $1 margaritas and 50-cent wings are no longer enough to get customers through the door.

Sales for the three months ended at the end of September fell 6% from the same period previously, parent company Dine Brands said last week.

This means that the chain’s sales have fallen for six consecutive quarters dating back to the start of 2023.

Bosses admitted their old ‘playbook’ of rotating low-price promotions didn’t work in today’s market, where diners want value on entire meals, not just selected items.

Instead, they say the chain plans to roll out a more consistent value offering.

For the first time this week, Applebee’s will introduce its Real Big Meal Deal, which will include a choice of appetizers and drinks at an affordable price.

Applebee’s admitted that its current promotions were not appealing to consumers

The Real Big Meal Deal has not been given an official end date, but bosses have said it will last longer than a usual limited-time offer. Prices will be revealed this week.

The move comes as other chains like Chili’s, McDonald’s and Popeyes offer similar value-driven meals to attract inflation-weary diners.

Experts say the move could be crucial to Applebee’s recovery in an increasingly difficult economic environment.

“What a lot of customers want is a low price for meals,” Global Data retail expert Neil Saunders told Daily Mail.com.

“Consumers are tired of constant inflation and are increasingly looking for value for their money. Applebee’s is responding to that with its new Value Meal.”

“The previous strategy of constantly changing offerings didn’t work because consumers never knew what the price of the meal would be or what things would be offered,” he explained.

“This new strategy is much clearer.”

However, other experts have cautioned that promotional deals aren’t necessarily always the answer for struggling chains.

“The failure, or success, of these types of promotions can have significant financial implications for a business,” Sarah Foss, head of legal at Debtwire, told Daily Mail.com.

“As we all remember, Red Lobster’s failed ‘Endless Shrimp’ promotion ultimately cost the company $11 million.”

Red Lobster made several ill-advised operational decisions that were among the causes of its bankruptcy, the most notable being making the temporary promotion of $20 unlimited endless shrimp a permanent fixture.

Applebee’s announced the plan while unveiling its disappointing third-quarter results on Wednesday.

“Customer definition and value expectations have changed over the last two quarters,” Dine CEO John Peyton told analysts on the earnings call.

“They started to focus on the total cost of the meal. And where Applebee’s and IHOP focused primarily on promoting one menu item or menu item, it’s become clear that customers want to know the total cost of a meal at a restaurant…the cost of your sandwich, plus fries and drink,” he explained. .

Applebee’s joins Chilis and other competitors in offering quality meals to win back customers tired of inflation.

Earlier this year, Chili’s launched its “3 for Me” value meal which includes a side, like fries or mashed potatoes and a drink for just $10.99.

Popeyes also launched a value meal in September, offering three pieces of bone-in chicken for $5.

Applebee’s is known for its big burgers and fries

The causal dining chain is also offering “dollaritas” as part of its limited offerings.

The value war was sparked earlier this summer when McDonald’s announced its $5 meal deal, which includes a McChicken or McDouble, four-piece chicken nuggets, fries and a drink.

Rival Burger King’s $5 Meal Your Way offers a choice of one of three sandwiches – a Whopper Jr, Bacon Cheeseburger or Chicken Jr – plus four chicken nuggets, fries and a soft drink.

Wendy’s currently has a $3 breakfast deal as well as a $5 four-course meal, similar to McDonald’s and Burger King’s.