8 Do's and Don'ts for Launching a Successful LTO
By Aimee Harvey on Jul. 12, 2017CHICAGO -- Limited-time offers (LTOs) have been a hot topic lately, and for good reason. The summer season ushers in a wide range of food and beverage LTOs, in both convenience stores and restaurants. And in a few short months, c-stores and restaurant chains will be rotating in offers for fall and winter, spurring competitive marketing efforts and battling for customer interest.
But what makes a successful LTO, and which tactics should c-stores use to best position LTOs for success?
At Winsight's recent Restaurant Trends & Directions conference, held July 9–11 in Chicago, Rachel Kalt, creative director for San Francisco-based The Culinary Edge, led an insightful session on what to do—and what not to do—to drive long-term success with LTO programs.
Click through for the key takeaways ...
1. DO: Use LTOs as attention drivers
Kalt called out Starbucks' Unicorn Frappuccino as a prime example of how to create sensationalism, up the fun factor and generate social-media buzz.
2. DON'T: Distract from your core brand
Customers have to trust that the new menu item—whether it's a limited-time offer or a permanent menu fixture—can be executed successfully and that it aligns with the overall positioning of the brand. Kalt pointed to the recurring success of Panera's Lobster Roll; however, a similar lobster LTO by McDonald's faltered.
3. DO: Push your boundaries
Don't be afraid to go way outside the box; just make sure your customer will follow, Kalt said. She highlighted Burger King's recurring Mac N Cheetos LTO as an over-the-top item that customers continuously gravitate toward.
4. DON'T: Be an imitator
Don't introduce an LTO that simply follows suit with what others in your competitive set are doing. "Just because everyone's using Sriracha, doesn't mean that you have to top something with Sriracha," said Kalt. If an item or a flavor is everywhere, it's probably not special enough to grab interest as an LTO. Focus on true uniqueness instead.
5. DO: Tell a better brand story
Use LTOs as a platform to elevate your brand or menu. An LTO that calls out a higher-quality bread, a seasonal fruit or vegetable, or a different level of freshness, for example, can be part of a "premium" approach.
6. DON'T: Launch an LTO 'just because'
"Don't introduce an LTO for the sake of having an LTO. They're a lot of work, and you don't have to do it," said Kalt. Unless there's a definitive gap in the marketplace for the item and a clear strategy for creating, testing and promoting the item, it likely won't be successful.
7. DO: Let limited be limited
"Remember: Scarcity drives desire. An LTO should generate renewed interest in the brand whenever it returns to the menu," said Kalt. She mentioned McDonald's McRib sandwich as arguably the best example of how a popular LTO can spur long-term interest while only being on the menu for a very short time each year. While LTOs often become permanent menu items, others help the menu create value via the connection they have with consumers on a limited basis.
8. DON'T: Discount your way to success
Limited-time deals and bundle promotions can help strengthen the value equation for price-minded customers, but too many rock-bottom-priced LTOs could harm the brand. "You run the risk of downgrading your brand to the point where all you're known for is deals and discounts," said Kalt.