As convenience stores begin to resemble leading bakery-cafe chains with their expanding ranges of both brewed and specialty coffee options, LTO programs help introduce new flavors and roasts while testing customer preferences at the same time.
“LTOs are important promotional tools across the foodservice industry and keep menu offerings fresh and interesting for frequent customers while drawing in new patrons,” said Donna Hood Crecca, senior director at researcher Technomic, Chicago. “LTOs can also introduce customers to new flavors, ingredients and items, allowing operators to tap into trends and test market these elements.”
According to Technomic data, LTOs involving coffee have increased dramatically in c-stores. Year-to-date, 21% of beverage LTOs in c-stores involved coffee vs. just 6% in 2014. Flavor is often the biggest driver of coffee LTOs (46%), followed by a particular roast or bean (22%) and price (15%).
Seasonal Surprises
LTOs help introduce seasonal flavors year-round, and they also cater to consumers looking for a moment of indulgence.
According to Chicago menu research firm Datassential, c-stores have historically done well with seasonal offerings, but they were often much simpler, such as a pumpkin-spice flavored brewed coffee. Now, LTOs have expanded to include specialty beverages such as espresso drinks, hot chocolate and teas.
Sheetz recently announced a lineup of new specialty fall beverages, including a pumpkin-pie latte, a maple latte and a hot apple cider, all available hot, iced or frozen in all of its 500-plus stores on the East Coast. These LTOs come on the heels of the chain’s systemwide rollout of its new coffee platform, Sheetz Bros. Coffee, which includes four new roasts, from light to dark French. Additionally, a video on the Sheetz website details the different coffee offerings and origin information—something in which consumers are increasingly more interested.
“Our lineup of specialty fall beverages brings popular seasonal flavors together for a special treat everyone can enjoy,” said Ryan Sheetz, director of brand strategy. “Our staff of trained baristas creates each beverage by hand, allowing us to fully customize the experience to meet our customers’ specific tastes and preferences.”
Equipment Innovation
From an equipment standpoint, coffee brewers and espresso makers are more advanced than ever, making it easier to test out new, fresh flavors because the “base” coffee brew is better than ever. And because new equipment can hold coffee fresher for longer, c-stores can sell their LTOs throughout the day, not just during peak hours.
Many of todays’ coffee-making equipment models also have smart capabilities, meaning they offer various brewing controls and options for flavor add-ins, often within the same system. This enables operators to try new flavors and drinks on a whim. Once the perfect profile is created, the recipe can be saved and deployed across multiple locations with the same result, making LTOs a much simpler proposition.
Balanced Indulgence
LTOs are also a great tool for testing, as they can help c-stores measure the popularity of more indulgent, dessert-like coffee drinks for afternoon consumers looking for a pick-me-up or drinkable treat. They also help attract new customers while maintaining some menu excitement for regulars.
Recent flavored coffee drinks on c-store menus have included s'mores cappuccinos, dulce-de-leche lattes, frozen chocolate-covered-strawberry mochas, peanut-butter hot chocolates, dark-chocolate-covered-cherry coffees, and whole chocolate-cookies and cream macchiatos.
“C-stores are not afraid of a little indulgence in their beverage offerings, as they continually pair interesting dessert flavors onto the beverage menu,” according to Datassential.
New Customer Connections
LTOs also give c-stores a way to target current and potential customers, as well as specific dayparts. “Young consumers, for example, are very in tune with spicy flavor profiles,” said Crecca. “Offering a sriracha or ghost pepper LTO item may draw them through the doors. Featuring a really unique, craveable item is also appealing.”
She points out QuikTrip’s seasonal Maple Bac’n QuikShake with four full slices of bacon as an example of attracting younger customers looking for an indulgent treat or breakfast.
That said, daypart growth is another objective for LTOs. “As breakfast becomes even more competitive, appealing to on-the-go consumers is ever more important. Breakfast LTOs can provide added appeal and competitive edge for c-stores,” Crecca said.
This post is sponsored by Curtis Coffee and Specialty Beverage Equipment