The trend: Sandwich chains are taking dramatic steps to counter slumping sales as rising costs and fierce competition pressure quick-service and fast-casual restaurants.

• Panera Bread is planning to increase sandwich portions and beef up its salad ingredients under a multiyear turnaround effort aimed at winning back consumers.
• Jack in the Box, battling three straight quarters of drooping same-store sales, lowered prices on certain meal combos and increased cup sizes on smaller combos. The company is closing underperforming restaurants and selling the Del Taco chain.
• Chick-fil-A, testing menu innovations, began rolling out chicken and waffle sandwiches in Baltimore and San Antonio for a limited time in December. Last year, it offered new items, including a Pretzel Cheddar Club sandwich.

These moves come amid a broader slowdown as price-sensitive consumers skip sandwich chains. Visits to sandwich shops dropped each month from February to December last year, including declines of 1.2% in November and 2.6% in December, per Placer.ai data. Chicken-chain visits fell 1.2% and 1.6% in October and November, respectively, but rebounded 1% in December.

Why it matters: Inflation and rising menu prices are weighing on lower- and middle-income consumers, spurring a fresh round of food wars amid a recognition that fast food is losing its low-cost perception. Chains like Burger King introduced new value meals, and even McDonald’s felt compelled to refocus on affordability in response to falling traffic among lower-income patrons and competition from rivals offering better value.

Implications for brands: Many fast-service food chains have learned the hard way that they must offer improved menu offerings and service to move consumers who are spending with care in today’s environment.

• Perceived value matters. Cutting corners backfires, as Panera learned when sales fell after it diluted its salads with iceberg lettuce to save money.
• Limited time offers are a low-risk way to test new products. Confining pilots to a small number of markets, as Chick-fil-A is doing, limits the investment that’s needed to tell if the new products engage consumers.

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