At the time of this writing, grocery inflation was still outpacing menu prices, but it was in decline. Consumer Price Index data released by the Bureau of Labor Statistics in February indicated that food-at-home prices increased at an annual rate of 11.3 percent in January, down from 11.8 percent the previous month. Comparatively, prices for food away from home climbed 8.2 percent for the same time period. This pricing gap is, at the moment, giving consumers a nudge to buy restaurant meals. Restaurants may have an opportunity right now to entice guests with limited-time offers that stand out and even push beyond what guests expect from a brand. This can work especially well if you have a new item or service model you’re testing that needs to make a splash and generate some attention. Take Shake Shack, which recently unveiled its $20 Truffle Table experience, a limited-time offer designed around its new truffle-related menu items. It includes a table for two with a white tablecloth, fine china, wine, a milkshake of the guests’ choice, and a selection of truffle-themed menu items. It’s not what guests would expect from Shake Shack – with the possible exception of the milkshake – but it generates interest, feels like a novelty experience, and therefore elevates the offer into something more memorable and special than something prepared at home. The limited-time offers you provide can help you tempt guests who want to take advantage of the scarcity of a meal item that won’t last for long, test new ideas that might deserve to be on your menu for the long term, and reward the guests who have been your most loyal supporters. According to Technomic research, the most craveable LTOs tend to be comforting, indulgent foods. However, if you build offers that deliver on the specific feedback your most loyal guests provide, your LTO lineup has the best chance of strengthening – and becoming an extension of – your relationships with these guests. Every time they place an order with you, consider it an opportunity to learn about their preferences. What are their favorite menu items? What doesn’t work for them? What do they wish you would offer? How can you make them feel like their feedback matters to you – and that they are part of an exclusive club? For example, could you invite them to vote for their preferred LTO, have them sample the contenders, or provide them with early access to the one you decide to promote? Restaurant operators have been offering more limited-time offers (LTOs) this year than last year – and according to Datassential research, 54 percent of operators say they are a central part of their business. In uncertain economic times, they can be a valuable tool for gaining control, enabling operators to test new menu items, make use of limited ingredients amid supply chain strains, and simply have something new, interesting and urgent to offer and promote to guests. The fall months tend to feature a litany of LTOs at restaurants, but the season shouldn’t dictate your plans. Datassential advises operators to think beyond seasonal ingredients when planning LTOs, opting for fresh, high-quality ingredients or new flavors before items that people typically associate with the season. Consider having guests themselves vote for their favorite LTO or invite them to provide feedback about items you’re testing – it can help you not only secure guest buy-in but also offer an experience that will better connect them to your brand. Use LTOs as opportunities to upsell profitable items on your menu – like a specialty cocktail that pairs well with the LTO and can be promoted alongside it. Finally, it’s most important to build LTOs that suit not only the guest but also the times: Make sure your offers are foolproof to prepare with the staff, skills and ingredients you have on hand. Limited-time offers are a critical tool for restaurant operators right now. While most restaurant brands won’t be so lucky as to land on the next Pumpkin Spice Latte or Shamrock Shake, LTOs still bring benefits that are especially helpful in uncertain economic times. They can motivate guests to return more often, inspire loyalty by helping your most frequent guests build rewards more quickly, and help you innovate on a shoestring by providing you with a vehicle for testing new ideas. They can also help you stay front-of-mind with guests throughout the year by giving you a regular stream of content to promote. Holidays and changing seasons can provide natural inspiration and launching points for new LTOS. Even the best idea won’t take off without a plan to help it succeed, however, so lean on your marketing and communication tools to generate awareness and interest. Get the word out about each LTO on your email list and provide an exclusive offer around it. Design a contest to generate buzz on social media around your offer, and make sure that all promotions — email, social media and in-store — link back to up-to-date information on your website. Make it easy for guests to get more information about your offer by using a QR code on all materials and linking it to key information on your website. Throughout the process, collect data on the response from guests that you can analyze in an effort to both feed your future plans for LTOs and also course-correct where needed. Enticing guests to splurge or treat themselves can be a tough sell when consumers are pinching pennies. But people still have to eat, so reinforcing the value you provide — not necessarily the low prices but the quality of the overall experience — can make coming to your restaurant a justifiable expense for guests. A recent report from Modern Restaurant Management shared how a range of different brands have been promoting value to guests, including a $5 off dine-in offer for a limited time this summer in an effort to help guests pay for gas, and an “inflation relief” menu that slashed prices by as much as 75 percent for a limited time. Offering discounts can only happen for so long at a time when restaurants themselves are also straining to eke out profits, so whether you’re cutting prices for a limited time or not, it’s just as important to think beyond the monetary value you provide. As you plan your promotions in the months ahead, think of the value you’re providing from different angles. Maybe you can help your guests solve a problem, like the offer above that helps guests pay for gas. Perhaps you can offer social value by bringing people together at a happy hour or other event. Maybe your brand is one that can offer psychological value because of the care you take in offering healthy options or your commitment to sourcing from sustainable suppliers. Weaving several kinds of value into what you offer can strengthen the offers you provide. Your efforts don’t have to be elaborate: Even a simple thank-you message to guests on your website and social media can help boost the good will that brings people back. |
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