Have you ever thought about how dominos was able to get 2 million new loyalty program customers? Starbucks also increases its sales by using this one trick. It is a Limited Time Offer! also known as LTO. People are attracted to scarce goods. In this blog, you will read about how you can increase your restaurant sales by using this one trick. You will decode the whole ‘Why’ behind this and you will also read in detail about how these global brands did it and how you can do it too.
What is a limited-time offer?
A limited-time offer, or LTO, is a promotional strategy that offers customers something exclusive for a short period. It could be a seasonal dish, a special discount, or even a bundle deal. The key is that it’s only available for a limited time only. This limited availability creates excitement and urgency, compelling customers to act fast before the opportunity vanishes.
For instance, imagine offering a pumpkin spice latte only during the fall season. Customers who love the flavor will rush to enjoy it before it’s gone. Limited-time offers are versatile. You can use them to introduce new dishes, celebrate special occasions, or simply create buzz around your restaurant.
Why do limited-time offers work?
Limited-time offers are highly effective because they leverage a psychological principle called scarcity. People are naturally drawn to things that are rare or temporary. When you tell your customers that a particular dish or deal is available only for a short time, they are more likely to act quickly.
This sense of urgency will drive foot traffic and will increase sales. I’m not saying it, there’s an in-depth research done by Kerry Group that says that 64% of consumers purchase LTOs during moments when they otherwise wouldn’t have bought anything. This statistic alone highlights how powerful these promotions can be. (Source: Kerry Group)
Moreover, limited-time offers can help you in attracting newer customers. If a new customer sees that your restaurant has an exclusive offer related to a newer item they would hundred percent try it. (Psst! You can also test your new recipes like this). A report by The Food Institute states that 40% of consumers are now more willing to try new and unique flavors than they were three years ago. By offering something fresh and exciting, you can attract both new customers and retain your regulars. (Source: The Food Institute)
Examples of successful limited-time offers
Several restaurants have used limited-time offers to their advantage. Let’s take a look at a few success stories to inspire your strategy.
1. McDonald’s $5 Meal Deal
In June 2024, McDonald’s introduced a $5 meal deal that included a sandwich, nuggets, fries, and a drink. The promotion was a massive hit. It led to an 8% increase in customer visits on the launch day, making it McDonald’s busiest Tuesday of the year. The deal also helped the brand reconnect with budget-conscious customers during a time of high inflation. (Source: Business Insider)
2. Domino’s Emergency Pizza Promotion
In October 2023, Domino’s launched its “Emergency Pizza” offer. The deal allowed loyalty program members to claim a free pizza within 30 days of a purchase. This promotion not only boosted orders but also brought in two million new loyalty program members. Domino’s successfully used an LTO to grow its customer base and reward loyal patrons. (Source: WSJ)
3. Starbucks’ Pumpkin Spice Latte
Starbucks has been a master of limited-time offers with its iconic Pumpkin Spice Latte. Available only during the fall season, this drink creates a frenzy among customers every year. In 2022 alone, the Pumpkin Spice Latte contributed to a 10% increase in seasonal sales. Starbucks has turned a simple drink into a cultural phenomenon, all by making it a limited-time offer. (Source: CNBC)
How to create a successful limited-time offer
If you’re ready to try an LTO, here’s how you can ensure its success.
1. Align with your brand
Your limited-time offer should reflect your restaurant’s identity. If you’re in a seafood restaurant, a special crab dish might be perfect. If you’re known for desserts, a unique cake or pastry could be the way to go. Stay true to your brand to ensure the offer resonates with your audience.
2. Tap into trends
Keep an eye on market trends and consumer preferences. Offering items that are currently popular can help you attract more customers. For example, plant-based diets are trending, so introducing a vegan burger as an LTO could bring in health-conscious diners.
3. Create urgency
The success of an LTO relies on urgency. Use phrases like “limited-time-only” or “available until [specific date]” to encourage customers to act quickly. When people feel they might miss out, they’re more likely to take action.
4. Promote your offer
Once you’ve done all the hard work of deciding what should be your LTO? and When you are going to implement this? the next thing you need to do is promote it. Trust me, it’s not a complex task. All you have to do is send SMS to your customers through EasyEat. You will get a better return on investment and your job will be done easily.
5. Monitor results
After the promotion ends, evaluate its performance. Analyze sales data, customer feedback, and social media engagement to understand what worked and what didn’t. Use these insights to refine your future LTOs.
Benefits of limited-time offers for your restaurant
Limited-time offers can bring several advantages to your business. First, they boost sales by encouraging impulse purchases. Many customers visit restaurants specifically for the LTO, increasing overall revenue.
Second, LTOs enhance customer engagement. They give people a reason to talk about your restaurant, whether through word-of-mouth or social media. A well-executed LTO can even go viral, bringing significant attention to your brand.
Third, limited-time offers provide a chance to test new menu items. Before making a dish permanent, you can use an LTO to see how customers respond. If it’s a hit, you know it’s worth adding to your regular menu.
Your customers would not keep themselves away from your restaurant once they see that something exclusive is happening. Humans are designed to run after scarce things. Now that you have learned from famous examples like Mcdonalds and Dominos, try to implement it on New Year’s Eve. People are already looking a place to celebrate this occasion, what’s better than your restaurant that’s offering them LTOs! Trust me this will get them hooked to your food and they wouldn’t want to go anywhere else in 2025.
