Franchise owners are remiss to think of LTO menu items as an inconvenience. In fact, a properly deployed LTO campaign can turn a tidy profit for your store and attract new customers to your location. The heavy lifting for LTO is usually performed by the franchisor. Franchise owners benefit from access to new promotional materials and flavor options. Consider brainstorming your own LTO implementation strategy after reviewing the benefits.
Seasonal appeal
An article in Time Magazine notes that marketing a product with limited availability is an effective strategy for getting customers through the door. However, franchise visitors also purchase LTO offerings as a way to celebrate seasonal events and holidays. McDonald's "Shamrock Shake" and Starbucks' pumpkin-spiced coffees are great examples of LTO sales driven by seasonal celebration. Franchise owners are sure to spur seasonal business to if they can successfully connect their brand to a customer's annual holiday experience.
Holidays aren't the only opportunity for limited time offers to make a big splash at your store. The summer months are a great time to market cool refreshments, while other stores ramp up their sales of hearty, hot meals as winter approaches. A perfect example of this strategy is Jason's Deli, a popular fast-casual chain in the Southwest that boosts revenues by pushing soft-serve ice cream in the summer and a wide soup selection during fall and winter.
New audiences
Several industry experts agree that Wendy's Pretzel Burger made waves across the limited service food industry and inspired several other franchises to introduce pretzel options of their own. Dunkin Donuts, Sonic, and Dairy Queen are just a few of the franchises that jumped onto the pretzel bandwagon in 2013. Wendy's LTO has been so popular that the burger chain has announced that it may put the burger on the menu permanently.
The success of Wendy's Pretzel Burger illustrates the possibilities for limited time offers. Wendy's wagered that new burger would be an instant hit with pretzel lovers and inspire curious burger connoisseurs to make a pit stop at their local store. The bet paid off and Wendy's is now in a position to reintroduce a proven product to a pre-tested audience of raving fans. Franchise owners can learn from this success by observing how their customers react to LTO campaigns and adjusting their marketing strategies to appeal toward the newly discovered market.
Implementation tips
Franchise owners can ease the roll-out of a new LTO by taking advantage of resources provided by the franchisor. QSR reports that companies spend time and energy designing LTO offers that tie in with their overall brand narrative, so franchisees can have faith that LTO products are extensively researched before being rolled out to franchise locations. Stores can raise customer awareness of limited time offers by discussing the products with employees. Workers with a better understanding of LTO products and their appeal will be more successful in selling those products to customers.