Name: Master limited-time offers for maximum revenue growth
Uploaded: 2024-06-24T16:09:09.751Z
Duration: 494.83
Description: In today's competitive restaurant landscape, limited-time offers (LTOs) are a powerful tool for success. Lizzy Friers, Director of Menu Research & Insights at Technomic, explains the four essential types of LTOs that can drive revenue, and shares how your business can nailing implementing them can get the most out of your menu.

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Lizzy Frier_v5.vtt

English

{{00:00:04}}
Limited

{{00:00:10}}
time offers, or also LTOs, are so
important today more than ever.

{{00:00:16}}
Operators have been increasingly adding
limited time offers to menus, whereas

{{00:00:19}}
core menu item counts are actually a bit
down compared to pre pandemic to today.

{{00:00:25}}
We have seen a steady influx in limited
time offer launches even throughout

{{00:00:29}}
the pandemic, which is pretty amazing.

{{00:00:31}}
So limited time offers are
really where a lot of the menu

{{00:00:34}}
innovation is taking place.

{{00:00:36}}
In addition to what's going on with menus,
we're also seeing consumers increasingly

{{00:00:41}}
gravitate toward limited time offers.

{{00:00:43}}
More than half of consumers today
actually say that a limited time

{{00:00:47}}
offer is really important when they're
selecting which restaurant to visit.

{{00:00:51}}
And that actually skews higher for our
younger consumers, Gen Z and Millennials.

{{00:00:55}}
And these are the consumers who are
going out to restaurants the most.

{{00:00:58}}
So it's becoming more important than
ever that operators really offer

{{00:01:02}}
an enticing limited time offer.

{{00:01:10}}
There are four types
of limited time offers.

{{00:01:12}}
that you can really think about when
you're enacting menu innovation.

{{00:01:16}}
So one type of limited time
offer is a broad appeal item.

{{00:01:21}}
So these items tend to have
above average purchase intent.

{{00:01:25}}
And these items tend to be relatively
popular items that appeal to core users.

{{00:01:31}}
They might not have the excitement that
a lot of other limited time offers really

{{00:01:36}}
have,  but these items tend to, you
know, drive kind of that broad audience.

{{00:01:42}}
So Burger King's Halvesies, which
have,  half of a portion of french

{{00:01:48}}
fries and half of a portion of onion
rings, that's a great example of

{{00:01:52}}
a broad appeal limited time offer.

{{00:01:54}}
A second limited time offer that you can
consider enacting is called a niche item.

{{00:01:59}}
So these items tend to have actually
relatively average or even below

{{00:02:03}}
average purchase intent metrics.

{{00:02:05}}
But they do have above average ratings
for cravability, and or draw, meaning

{{00:02:12}}
it has the ability to drive incremental

{{00:02:16}}
sales and or traffic.

{{00:02:18}}
So these items tend to have something
like a polarizing ingredient or

{{00:02:24}}
an emerging flavor or something
that is a dietary alternative.

{{00:02:28}}
So it might not be appealing
to a wide audience, but it

{{00:02:31}}
does have passionate fan bases.

{{00:02:34}}
So this is really important.

{{00:02:35}}
This means that it can be one of the
most popular limited time offers.

{{00:02:39}}
So, Applebee's Cheeto Wings obviously
features that kind of polarizing flavor.

{{00:02:44}}
That's a great example of a niche item.

{{00:02:47}}
Also KFC's Beyond Fried Chicken, of course
this features that dietary alternative.

{{00:02:51}}
That's a great example
of a niche item also.

{{00:02:53}}
A third limited time offer
type is a novelty item.

{{00:02:57}}
So these items tend to have,
again, average or below average

{{00:03:01}}
purchase intent ratings.

{{00:03:02}}
But it does have above average
ratings for uniqueness.

{{00:03:05}}
So this is where
uniqueness comes into play.

{{00:03:09}}
These items are used to,
really drive that,  excessive

{{00:03:14}}
interest,  for exclusivity.

{{00:03:18}}
These are great examples of style.

{{00:03:20}}
limited time offers.

{{00:03:21}}
They can be offered for a really,
really short period of time to

{{00:03:24}}
really maximize that interest.

{{00:03:27}}
So a great example of this is Wendy's
ghost pepper ranch chicken sandwich.

{{00:03:32}}
Obviously very unique, uh, to
have ghost pepper on a chicken

{{00:03:36}}
sandwich at a mainstream operator.

{{00:03:38}}
So the fourth type of limited time
offer and definitely saving the best

{{00:03:42}}
for last, these are best in class LTOs.

{{00:03:45}}
So these items tend to have above
average purchase intent metrics,

{{00:03:49}}
plus above average ratings for
two of our other three metrics of

{{00:03:53}}
draw, uniqueness, and cravability.

{{00:03:56}}
So these items tend to be,  really, you
know, popular items, familiar favorites,

{{00:04:01}}
but often with a little bit of a twist.

{{00:04:04}}
So these items are great examples
of ones that can really drive appeal

{{00:04:07}}
among a broad audience and drive
some of that traffic and sales.

{{00:04:12}}
So a great example of
this, everyone knows this

{{00:04:15}}
starbucks Pumpkin Spice Latte, a
great example of a best in class LTO.

{{00:04:27}}
Every single year, Technomic is
putting about 3, 000 limited time

{{00:04:32}}
offers that were recently released
from top 500 chain restaurants.

{{00:04:37}}
And top convenience stores and,  you
know, consumers are rating these items

{{00:04:42}}
on a number of different metrics.

{{00:04:44}}
So we're surveying them through,
they're looking at the menu

{{00:04:47}}
item name in the description.

{{00:04:49}}
And they're rating these items on
how likely they are to purchase

{{00:04:52}}
it amongst those other metrics.

{{00:04:55}}
So potential purchasers are taken through
a series of questions about how unique

{{00:04:59}}
or cravable they deem the item for draw.

{{00:05:02}}
How likely seeing the item on
the menu would drive them into a

{{00:05:05}}
restaurant and then, of course,
through a series of other questions.

{{00:05:08}}
So because we have this incredibly
robust data source, we're able to

{{00:05:12}}
pull out these concept designations
so you can understand how you can use

{{00:05:16}}
limited time offers to drive traffic.

{{00:05:18}}
Sales and really excite your guests.

{{00:05:28}}
As far as frequency of launching
limited time offers, it really

{{00:05:32}}
depends on the operator.

{{00:05:34}}
We're seeing operators increasingly
turning to limited time offers to

{{00:05:38}}
drive that excitement with consumers.

{{00:05:41}}
And we're also seeing operators offering
up limited time offer extensions.

{{00:05:45}}
So for example, the pumpkin spice latte
has really extended to other types of

{{00:05:50}}
pumpkin products on starbucks menu.

{{00:05:53}}
So really there is not necessarily
a winning number of limited time

{{00:05:57}}
offers that you should launch It
really should make sense for your

{{00:05:59}}
brand and for your menu positioning

{{00:06:08}}
When we're tracking limited time offers
It was those broad appeal items that

{{00:06:12}}
I mentioned the ones that are actually
above average from a purchase intent

{{00:06:16}}
perspective You Those are the ones that
are actually great indicators of items

{{00:06:20}}
that could become permanent on your menu.

{{00:06:23}}
However, there is so much about a
limited time offer that makes it so great

{{00:06:29}}
from that limited time offer aspect.

{{00:06:32}}
So a pumpkin spice latte might
not have the appeal if it were

{{00:06:36}}
available on the menu year round.

{{00:06:39}}
However, operators have found really
great ways to drive excitement.

{{00:06:42}}
For example, that limited time offer
of pumpkin spice lattes are launched a

{{00:06:47}}
little bit earlier every single year,
or for an example of like the McRib

{{00:06:53}}
from McDonald's, you never know when
that's going to be offered on a menu.

{{00:06:58}}
So there is,  stuff about limited
time offers that, you know, is really

{{00:07:03}}
individual and unique to every single
item, and it's often about maximizing

{{00:07:08}}
that interest and exclusivity of when
that offer is actually available.

{{00:07:18}}
Limited time offers.

{{00:07:19}}
There are, you know, a lot of challenges,
of course, to consider, especially

{{00:07:24}}
given our current environment.

{{00:07:25}}
You have to think about labor challenges.

{{00:07:27}}
You have to do training on how
to actually prepare and market

{{00:07:32}}
these limited time offers.

{{00:07:33}}
You also want to make sure that
they're not cannibalizing some

{{00:07:36}}
of the core items on your menu.

{{00:07:38}}
And of course, you know, there's
just traditional challenges with,

{{00:07:41}}
you know, supply chain, making sure
that you have the appropriate amount

{{00:07:45}}
of resources and the right supply
to be able to offer these items.

{{00:07:50}}
If you think about, some of the items that
have gone out into the market, if you're

{{00:07:54}}
not correctly preparing your staff on
how to create it, if you're not thinking

{{00:07:58}}
about the time it takes to create it,
to create it from the back of house.

{{00:08:01}}
If you're not thinking about how to
market it directly to your customers,

{{00:08:04}}
these are all things that you really
have to think about when you're

{{00:08:06}}
launching a limited time offer.

time offers, or also LTOs, are so
important today more than ever.

Operators have been increasingly adding
limited time offers to menus, whereas

core menu item counts are actually a bit
down compared to pre pandemic to today.

We have seen a steady influx in limited
time offer launches even throughout

So limited time offers are
really where a lot of the menu

In addition to what's going on with menus,
we're also seeing consumers increasingly

More than half of consumers today
actually say that a limited time

offer is really important when they're
selecting which restaurant to visit.

And that actually skews higher for our
younger consumers, Gen Z and Millennials.

And these are the consumers who are
going out to restaurants the most.

So it's becoming more important than
ever that operators really offer

There are four types
of limited time offers.

that you can really think about when
you're enacting menu innovation.

So one type of limited time
offer is a broad appeal item.

So these items tend to have
above average purchase intent.

And these items tend to be relatively
popular items that appeal to core users.

They might not have the excitement that
a lot of other limited time offers really

have,  but these items tend to, you
know, drive kind of that broad audience.

So Burger King's Halvesies, which
have,  half of a portion of french

fries and half of a portion of onion
rings, that's a great example of

A second limited time offer that you can
consider enacting is called a niche item.

So these items tend to have actually
relatively average or even below

But they do have above average ratings
for cravability, and or draw, meaning

So these items tend to have something
like a polarizing ingredient or

an emerging flavor or something
that is a dietary alternative.

So it might not be appealing
to a wide audience, but it

This means that it can be one of the
most popular limited time offers.

So, Applebee's Cheeto Wings obviously
features that kind of polarizing flavor.

Also KFC's Beyond Fried Chicken, of course
this features that dietary alternative.

That's a great example
of a niche item also.

A third limited time offer
type is a novelty item.

So these items tend to have,
again, average or below average

But it does have above average
ratings for uniqueness.

So this is where
uniqueness comes into play.

These items are used to,
really drive that,  excessive

They can be offered for a really,
really short period of time to

So a great example of this is Wendy's
ghost pepper ranch chicken sandwich.

Obviously very unique, uh, to
have ghost pepper on a chicken

So the fourth type of limited time
offer and definitely saving the best

So these items tend to have above
average purchase intent metrics,

plus above average ratings for
two of our other three metrics of

So these items tend to be,  really, you
know, popular items, familiar favorites,

So these items are great examples
of ones that can really drive appeal

among a broad audience and drive
some of that traffic and sales.

So a great example of
this, everyone knows this

starbucks Pumpkin Spice Latte, a
great example of a best in class LTO.

Every single year, Technomic is
putting about 3, 000 limited time

offers that were recently released
from top 500 chain restaurants.

And top convenience stores and,  you
know, consumers are rating these items

So we're surveying them through,
they're looking at the menu

And they're rating these items on
how likely they are to purchase

So potential purchasers are taken through
a series of questions about how unique

How likely seeing the item on
the menu would drive them into a

restaurant and then, of course,
through a series of other questions.

So because we have this incredibly
robust data source, we're able to

pull out these concept designations
so you can understand how you can use

As far as frequency of launching
limited time offers, it really

We're seeing operators increasingly
turning to limited time offers to

And we're also seeing operators offering
up limited time offer extensions.

So for example, the pumpkin spice latte
has really extended to other types of

So really there is not necessarily
a winning number of limited time

offers that you should launch It
really should make sense for your

When we're tracking limited time offers
It was those broad appeal items that

I mentioned the ones that are actually
above average from a purchase intent

perspective You Those are the ones that
are actually great indicators of items

that could become permanent on your menu.

However, there is so much about a
limited time offer that makes it so great

So a pumpkin spice latte might
not have the appeal if it were

Best Practice

In today's competitive restaurant landscape, limited-time offers (LTOs) are a powerful tool for success.
Lizzy Friers, Director of Menu Research & Insights at Technomic, explains the four essential types of LTOs that can drive revenue, and shares how your business can nailing implementing them can get the most out of your menu. 

Strategy

Limited-time Offers

Restaurants

Financials

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0-Lizzy_Freier_2024-01-26T10-21-12Z.jpg

Lizzy Freier

Discover insights from other experts

Director, Menu Research & Insights

Learn the secrets to menu innovation with four essential types of limited-time offers (LTOs) and how these LTOs can drive sales and captivate customers.

  Types of limited-time offers

Friers reveals key trends and concepts, helping operators use LTOs to boost sales, attract customers, and enhance guest excitement.

 Tracking limited-time offers

Discover how top operators use LTOs to excite customers and extend popular items like Starbucks' Pumpkin Spice Latte.

Setting the frequency

Learn why items with broad appeal can signal menu permanence and how operators can maximise interest.

When to choose foods for limited-time menu offers

Friers explores how operators navigate challenges like labour constraints, menu integration, and supply chain management to maximise the impact of these enticing menu additions.