Ole & Steen targets smarter promotions as value pressure builds
Data-led promotions replace blanket deals to drive traffic and margins.
As consumers grow more price-conscious without lowering expectations on quality, QSR operators are being pushed to rethink how they deliver value without weakening brand positioning.
Ahead of the QSR Media UK Conference & Awards 2026, Rachael McInnis, Food & Beverage Innovation Manager at Ole & Steen, told QSR Media UK that this tension is driving more targeted promotions, tighter cost control, and a stronger focus on core products.
She also outlined the brand’s investment priorities, key performance metrics, and the risks of competing on price alone as cost pressures persist.
QSR Media: Looking back on the past 12 months, how would you describe the biggest shift in the QSR operating environment, and what has that required brands to do differently?
Rachael McInnis: The biggest shift has been the move toward a far more value-conscious consumer without a loss of expectation around quality and sometimes actually a higher demand for quality and provenance. It is a tension that has really defined the last year.
For a brand like Ole & Steen, this has meant leaning into what makes us stand out against other bakery chains: quality, craftsmanship, and freshness, whilst ensuring we communicate value in a more tangible way. It requires much sharper pricing plans, clear product hierarchies, and a more disciplined approach to promotions. Making sure we drive traffic without diluting the brand and making promotions more customer-specific instead of having a blanket approach.
At the same time, operational efficiency has become critical, particularly in managing labour and waste in a fresh-bakery model.
As brands simplify menus, refine promotions, and rethink formats, what operating or commercial decisions have had the biggest impact on your brand?
The most impactful decisions have been around simplification and focus, particularly given the complexity of a fresh bakery offer.
Menu rationalisation has played a key role; focusing on bestsellers and core Danish lines has helped improve availability, reduce waste, and simplify in-store execution. At the same time, we’ve refined our day-part strategy. By driving stronger performance in breakfast and lunch, whilst building more structured afternoon and treat occasions through both products and targeted daypart marketing.
From a commercial perspective, we’ve been more deliberate with promotions, shifting toward bundled offers and offers targeted towards customers' buying habits to increase average transaction value whilst reinforcing perceived value.
We’ve also continued to build our digital and loyalty capabilities, allowing us to better understand customer behaviour and drive repeat visits, which is particularly important when we have so many competitors on our doorstep.
What investments are you going to focus on for the brand, and what KPI targets can you share?
For Ole & Steen, investment is focused on three key areas: product excellence, digital capability, and store-level efficiency.
First, continue to invest in product quality and innovation, ensuring we stay true to our Danish heritage whilst keeping the range relevant.
Second, growing digitally, in particular our loyalty and CRM, to drive frequency and deepen customer relationships.
Third, operational improvements in-store, including production planning and waste reduction, as well as setting planograms for stores.
Key KPIs include:
Like-for-like sales growth
Gross margin improvement, whilst keeping or improving product quality
Average transaction value
Customer frequency and loyalty engagement
Product availability and freshness metrics
What will be the next major challenge for the industry, and how should it be addressed?
The next major challenge will be maintaining premium positioning in a market where consumers are increasingly cost-conscious.
For brands like Ole & Steen, the risk isn’t just losing traffic; it’s being forced into competing on price rather than quality. The key will be reinforcing why the brand is worth it: provenance, craftsmanship, and customer experience.
At the same time, input cost volatility, particularly in commodities like butter, flour, and energy, will continue to put pressure on margins. Managing that without compromising product quality will be critical. Customers are increasingly aware of what goes into their food and are demanding better and better quality, whilst not wanting to budge on price. This is understandable, as everyone from large businesses to individuals feels the pressures of the current cost of living, but it does create a problem for the industry.
Looking ahead to the next 12 to 24 months, what will separate the brands that keep gaining share from those that fall behind?
The brands that win will be those that are both operationally disciplined and highly differentiated. For Ole & Steen, that means continuing to stand out through a unique, authentic offer that showcases our Danish roots, whilst executing consistently at scale.
Winners will:
Deliver a clear point of difference (not just compete on price)
Execute brilliantly in-store
Use data to drive smarter decisions on range, pricing, and promotions
Build strong customer loyalty and repeat behaviour
Those that fall behind will struggle to balance cost pressures with brand integrity, often becoming overly reliant on discounting or losing clarity in their offer.
Hear more from Rachael at the QSR Media UK Conference & Awards 2026 on 22 June at the Park Plaza Victoria, London, UK. For more information, please click this link.
