How to Leverage LTOs to Boost Profits
August 2024
Foodservice operators looking to drive consumer interest and boost profitability should consider capitalizing on the growing trend of limited-time offers (LTOs). The restaurant industry has seen a significant 7% growth in LTOs, with every segment within the top 500 experiencing an uptick in LTO launches. Based on a 2023 survey, operators introduced an average of nearly three LTOs a month. Based on this uptick in launch frequency, operators should consider LTOs an essential strategy for menu success.
Consumer Demand and Profit Impact
As many as 52% of diners and 62% of Millennials say that LTO availability is an important factor in deciding which restaurant to visit. Among younger diners, this trend is even more significant, with 55% of Gen Z agreeing on the importance of LTOs. These offerings can have an impressive impact on bottom lines, with average check spend increasing 29% when diners purchase an LTO. This boost to profits makes LTOs undeniably attractive to operators, especially when they tailor offerings to their consumers.
Demographic Targeting
Knowing which groups are most likely to purchase LTOs can help operators cater to their customer base more effectively. Millennials lead the pack at 43%, ahead of 25% of Gen Z, 14% of Gen X, 17% of Baby Boomers and just 2% of mature diners. These numbers reveal that LTO consumers tend to be in or near their peak spending years. Gender distribution skews slightly toward males (54%) compared to females (46%) likely to purchase.
Partnering for Success
Suppliers can help operators create innovative LTOs by providing versatile ingredients for use in multiple dishes. Butterball’s turkey products, particularly Sliced Turkey Tenderloin Medallions, can be used in a variety of recipes to appeal to a wide range of consumer tastes.
Try a creative take on Italian fare with the Turkey Medallions with Tomato-Orange Gnocchi and Basil, a colorful dish featuring soft cauliflower gnocchi contrasted with bright and zesty flavors. Or keep lunch light and delicious with the Turkey Cool Wrap, which includes crunchy romaine and a special sauce of mayo, mustard, BBQ sauce and honey, served with waffle fries. Diners will also love the combination of turkey with classic Mediterranean flavors in this Tuscan Turkey Pasta.
By offering LTOs, operators can drive interest, increase profitability and maintain their competitive edge. Understanding consumer demographics and using versatile ingredients can help create a dynamic menu that keeps customers coming back for more. How will you respond to the rising LTO trend? Tell us what you think on our Facebook or LinkedIn pages.
Source:
How to Leverage Trends to Create Sustained Menu Success–2024–Technomic
