In recent years, LTOs have become an important tool for operators to drive traffic and boost loyalty. Shifts in customer spending, evolving guest preferences, and increased competition have had many restaurants looking for creative ways to attract and retain visitors. As operators work to increase loyalty and repeat visits, LTOs can be an effective way to get attention, broaden their customer base, and raise revenues.

Given that 7 out of ten guests have purchased an LTO recently and 85 per cent of the people who enjoy an LTO will return again, there’s a clear link between LTOs and loyalty for restaurants.

LTOs

Studies show that 52 per cent of consumers consider limited-time offers crucial when choosing a restaurant, which is especially significant when 49 per cent of Canadians are dining out less often than in previous years. This shows that LTOs are an important part of attracting customers.

However, competition has increased, with the number of LTOs in the food service industry up by 53 per cent over the last four years. Regular, seasonal, or themed LTOs can help build loyalty by attracting customers for better value, enjoying seasonal flavours they’ve missed, or getting them excited about something new.

Starbucks’ PSL has sold more than 600 million of this customer favourite since its launch in 2003, a menu item only available for the fall months before their holiday beverage lineup arrives.

Loyalty deals

Offering select LTOs through a loyalty app or program allows guests exclusive access to perks, encouraging them to remain active so they don’t miss the newest offer. This strategy increases the perceived value of the app and keeps users striving to learn about the newest offer or working towards earning the next reward.

An example of this is Dunkin’ Donuts’ loyalty app, which rewards its members by allowing them to order ahead and skip the in-store lineups to encourage higher numbers and raise the value of their membership.

Detailed data

Offering LTOs through a loyalty app affords restaurateurs the opportunity to collect real-time data on sales, frequency, customer preferences, and more. This data can help create detailed customer profiles, craft customized deals, and create personalized messages to help further build relationships and loyalty.

Geofencing is another way operators can use their loyalty app data to their advantage, promoting LTOs to customers in their geographical area to draw them in.

McDonald’s has used geofencing to alert employees when a mobile order customer is nearby so they can get their order ready faster, simplifying the experience for the customer and making sure their order is hot and fresh when they arrive. The company reported a 62-second shorter wait time for these customers to receive their orders.

LTOs and loyalty

As 91 per cent of people say they would choose a restaurant offering an LTO over one without, and loyal guests spend an average of 67 per cent more than a first-time guest, leveraging the benefits of a partnership makes business sense. Focusing on limited-time offers that attract attention, building relationships, and drilling down the data can help operators keep guests coming back again and again.