It’s actually a smart move, IMO.
Capture part of the “we used to eat a Chili’s or some such but we can’t afford it anymore but we can afford the McDonald’s premium burger” crowd.
Makes you feel “upscale” as you stretch that dining out dollar (and stretch your waistline at the same time).
That is exactly what is happening - we own a “higher end” fast food place (yes there is such a thing LOL), the customers we are getting now are the folks that used to eat lunch at Applebees and Chili’s. So while our overall customer count is down, the customers we have now are spending more.
We’re in a business area, the same chain in residential areas not doing so well.