Updated September 4th 2013
A limited time offer is an ideal way of increasing customer visits during low periods like the summer or winter. It is always a way of promoting certain specialty items to improve profits in your restaurant.
Limited time offers are a unique way of promoting the products and services of your restaurant. It gives the restaurant owner an opportunity to attract new clients and retain old customers while making a handsome profit out of this short lived offer. LTOs bring in repeat business and also generates excitement among other customers who have never visited your establishment. They tend to offer an attractive option to customers looking to try out different restaurants. LTOs are also known to boost sales and maintain your regular loyal customers.
Traditionally, an LTO is a way of boosting sales during a given period of time or a way of introducing a new item on the menu without full commitment. This means that if customers don’t like the new product it won’t feature again. On the other hand if they like it, it can replace another less attractive product on the menu.
LTOs can be launched any time but they are highly recommended when opening up a new restaurant or when promoting events and holidays. During the first week or month of business you can launch an LTO that will bring in the first customers who will hopefully then become regulars. During slow seasons like the summer or winter period, you can launch an LTO to attract people to your restaurant and drive up sales.
LTOs also come in handy when testing new menu items or making changes to the current menu items. You can use it to test run a new product you have in mind. New items always attract new customers and make the restaurant interesting for regular customers. For instance the new products might have been suggested by your loyal customers. On the other hand the LTO plays an important part when you want to occasionally make limited changes to menu items. For example when you want to bundle some items together or increase the amount of certain foods.
It’s always important to ensure that your LTO is appealing to all types of customers; the regulars and the new ones. This will ensure that your LTO achieves its goals of attracting and retaining customers as well as improving your profits. In order for you to draw customers to your LTO it should be able to:
- Offer a new Experience: Customers are always intrigued by new things and products, especially if they are available for a limited period.
- Offer a good deal: By launching an LTO you are simply promoting menu items by lowering their price. Customers are attracted by limited and low priced products. However avoid instances where the price cuts affect your overall profits.
- Create a sense of Urgency: Customers are attracted by offers that are only available for a short time. Think about the seasonality of products like asparagus, truffles, etc. or a period of celebrations during the year like Easter, Christmas, etc. They will surely flock the restaurant, thereby boosting sales.
Given that an LTO is ‘limited in nature’ you have to dedicate a sufficient amount of time and effort to ensure that it is successful. You have to figure out the right strategy, how profitable it would be, and how to market it to all the customers. Ensure that you enable yourself sufficient time to plan and organize it before you launch. Get all the new ingredients you will require in time for the launch to avoid disappointing your customers.
You can even allow your regular customers to participate in the LTO by implementing some of the suggestions you get from the daily feedbacks. Take time to study customer preferences before launching an LTO. You don’t want to end up offering something that your customers find repulsive or one that appears very regular. Make it unique, don’t just offer one that is similar to those offered by other restaurants.
The most important thing after planning and organizing an LTO is to market it. There are several methods of advertising an LTO including; newspapers, television, and posters. The most effective method is online or through social media. You can post it on the restaurants facebook page or twitter account.
An LTO should be simple and focused. Avoid very complex offers as they may have a negative impact on your business. Regardless of the type of LTO you decide to offer, keep in mind that any new item or changes in the menu are within the normal price range. You don’t want to scare customers by introducing highly priced menu items.
Limited time offers are very beneficial to the restaurant owner when properly planned and implemented. They attract new business, boost sales during the low seasons, and also re-ignite interest of the regular customers. They also enable you to adapt more easily to the ever changing consumer tastes.
Written by Daniel Grossmann
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