 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.
 Loyalty programs have become critical tools for restaurants to connect with guests – but they are also easy to get wrong. Even giant brands have run into trouble when their loyalty programs made changes that required participants to use significantly more accumulated points than previously needed to collect rewards. At the other end of the spectrum, a number of brands that jumped into loyalty marketing via newer Web3 technology – using blockchain and NFT to deliver experiences that connect with consumers in new ways – have also hit some bumps in recent months. Succeeding with loyalty is likely less about the specific tools you use and more about how well your business truly understands the habits and cravings of its guest segments. At a time when businesses are eager to target millennials (who eat out more than any other generation) and Gen Z, demographics that prize authenticity, loyalty programs in all of their forms need to feel trustworthy. Nowadays, that’s about building community with guests where they spend time – both online and in-person – in ways that make them feel understood and appreciated. For a good number of brands that are targeting Gen Z consumers, that could mean collaborating with complementary brands to connect with people in a virtual space like an online game. But just like the messages you send to your database of guests, one approach doesn’t fit all.
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