Ira Blumenthal discussed why restaurants use LTOs. He
then moderated a panel discussion on LTOs with Jack Li,
John Dillon and Dominic Losacco at COEX 2017.
The limited-time offer (LTO ) is a necessity in the restaurant industry, creating buzz and bringing in new customers. At the same time, an LTO can be a challenge for franchisees, vendor partners, and even customers, who are bombarded with thousands of LTOs each year.
Developing and launching an LTO that gives the restaurant and brand stickiness with customers can spark sales and steal market share, but it requires a balancing act that takes into account uniqueness, customer tastes, franchisee ability, and vendor partner support.
Restaurants use LTOs for many reasons, including sparking sales and driving new business.
LTOs are a balancing act of unique offerings, consumer interest, and supplier availability.
Uniqueness is important because consumers are bombarded with LTOs.
- LTOs can help restaurants steal market share.
LTO ideas can come from anywhere, including customers, franchisees and vendor partners.
- Social media plays a key role in promoting LTOs.
On average, LTOs comprise 15% of restaurant menus, but can vary by segment.
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