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Niching down to boost the appeal of your LTOs
At full-service and quick-service restaurants alike, the number of limited-time offers has grown 53 percent in the past four years, according to research from Technomic. For more than half of consumers Technomic surveyed, the availability of LTOs impacts their choice of restaurant. As a result, the number of LTO launches has climbed 46 percent in the past year. But just as foodservice businesses have had to target customized segments of their database to drive sales in general, they are finding that guests respond to LTOs differently. As a result, restaurants should approach them in ways that connect with cross-sections of guests who are navigating an increasingly crowded landscape of options. What guests appreciate in an LTO often differs by generation, for example. According to Technomic research, Gen Z are attracted to menu items containing familiar brand names – like IHOP’s Oreo Cookie Crumble Waffle, for example – or descriptive words like “loaded” or “big.” More mature consumers like those descriptive words too, though more to indicate the actual size (i.e. value) of the dish coming to them. You may be able to refine your offers through deeper segmentation of your data – and this could help you build stronger guest relationships and stand out above competitors as well. For example, is there a specific guest segment you want to warm up as you approach a certain time of the year? Being able to draw connections based on factors such as gender, age, geography, behavior, values and interests could help you build your ideal LTO. It won’t appeal to everyone, but you can use it to enhance loyalty with a key niche audience.
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