Serving the Bottom Line: The Importance of Value-Driven LTOs

Posted in Desserts on December 20, 2024

Let’s face it: Value is a big deal for both consumers and operators. Tight margins and inflationary pressures have operators looking for low-risk ways to boost business — and belt-tightening makes consumers more hungry to find ways to save a buck.

But no matter what the economic climate, value holds universal appeal. As Kevin Bryla, CMO of consumer experience at point-of-sale systems provider SpotOn, put it: “When the economy is good or the economy is bad, you’re seeing some version of a combo meal from chains, maybe seasonal or value-based.”¹

Enter value-driven limited-time offers — a promotional strategy designed to provide customers with an urgent reason to make a purchase within a specific time frame — before the offer is off the table. Given that 91% of consumers are likely to choose one restaurant chain over another if it offers LTOs or new items,² it’s no wonder that operators are increasingly turning to limited-time offers to jumpstart sales. 

LTOs that feed the need for value can hit the sweet spot with consumers by appealing to both their palates and their wallets. Desserts, beverages, appetizers and sides are the most prolific categories for LTOs,³ serving up opportunities for chefs and operators to get creative.  

So What Kind of Value-Driven LTOs Do Consumers Eat Up?

• Discounted Combo Meals: Fast-food chains like McDonald's and Burger King often promote value meal combos at a reduced price, bundling popular items like burgers, fries and drinks for a limited time. In the casual restaurant category, Applebee’s “All You Can Eat” campaign triggered an onslaught of searches and clicks, beating the average by 45%. Chili’s “3 for Me” deal outperformed the average by 35%.¹ At independent restaurants last year, bottomless menu items and All You Can Eat offers were both up 30% from the week of August 4 to the week of August 11.¹
• Seasonal Menu Items & Merchandise: Seventy-nine percent of consumers are interested in LTOs with seasonal flavors.⁴ Sixty-one percent of consumers think seasonal flavors should distinguish LTOs from regular items, and 40% believe that they should be tied to an event or holiday.¹ On October 1, 2024, Dunkin’ released a new Potion Macchiato, spooky-themed munchkins and even costumes and candy buckets in honor of Halloween. To make the most of pumpkin flavor for the autumn and winter seasons, give the seasonal favorite a sweet twist with innovative recipes like Pumpkin Pie Milkshake with NILLA Wafers and Pumpkin Cheesecake made with OREO Base Cake. Peppermint Cupcakes made with OREO Cookies could be a nice treat to offset any naughtiness over the holidays.
• Buy One, Get One (BOGO) Deals:While these deals are often associated with major chains, independents also added 210 BOGO items in 2024,¹ with additions increasing by 90% from the week of August 4 to the week of August 11. White Castle was offering a free dessert on a stick on October 14 with promo code DESSERT for National Dessert Day. Consider running a similar promotion with Chocolatey Truffle Pops made with OREO Base Cake or a Chocolate Marshmallow Ice Cream Bar made with OREO Cookie Pieces.
• Family Meal Deals: Fifty-eight percent of families look for deals and discounts when choosing a restaurant.⁵At Panera Bread, consumers can save up to 40% with Family Feast Value Meals (four half-sandwiches, a whole salad, a group soup, a French baguette and four Chocolate Chipper cookies). MyPanera Rewards members get free delivery on orders of $25 or more. Cracker Barrel offers a wide variety of family meal options for as little as $40. When creating a family meal deal, consider adding value and giving customers another reason to buy by including a small dessert treat like S'mores Mini Cupcakes with HONEY MAID Honey Grahams.
• Special Event Promotions: LTO tie-ins with blockbuster movies, TV shows or major sporting or entertainment events and figures tap the power of popular culture to feed the bottom line. To celebrate the “Ghostbusters” 40th anniversary last year, Krispy Kreme introduced a special limited-time collection of doughnuts, including the Ghostbusters Cookies N’ Creme Doughnut made with OREO Cookie Pieces.
• Retro Desserts: LTOs that feature nostalgic flavors bring back fond memories and satisfy a hankering for yesteryear. Fifty-seven percent of consumers are interested in nostalgic desserts, yet only 43% of dessert-serving operators offer them⁶ — which means there’s an opportunity to dig into demand and scoop up sales. In May 2024, McDonald’s introduced the Grandma McFlurry, which has candy pieces and updated cups — a great example of how nostalgia can impact buying trends. “Retro desserts are continuing to draw consumer interest. Taking what’s familiar and making it new again [can be beneficial to your business],” said Chef Carmisha Ramsey.

Table Reset: Prioritizing the Customer’s Perception of Value

Low price is second only to great taste as the top factor in whether consumers think a food item is a good deal.⁷

• Seventy-five percent of consumers across generational groups consider taste the top factor, followed by 62% for low price.
• My entire household will eat it: 36%.
• Brand, convenience and familiarity/comfort: 21%.
• Sustainability: 12%.
• New/unique: 5%.

What Makes a Good Deal?

Thirty-two percent of consumers say 21% to 30% is the minimum discount for an item to be a good deal.⁷

Benefits of LTOs with Brand-Name Ingredients

Done right, limited-time offers can drive repeat visits from existing customers, attract new ones and set your foodservice operation apart from the blur of competitive options.

LTOs enable operators to test new culinary concepts on a margin-friendly scale, without committing to a long-term addition to the menu. “They help create a diversified menu mix and allow consumers to experience new food innovations in a format that carries minimal risk,” said Joel Minkoff, associate customer chef at Mondelēz International.

Operators can take full advantage of this low barrier to entry with ingredients that offer high brand recognition. The Mondelēz Foodservice portfolio of brands provides a rich source of trusted brand-name ingredients that can enhance LTOs in a variety of ways.

Greater value: Trusted brand ingredients add credibility to a new dish and give consumers a sense of its quality and flavor appeal.

More buzz: Leveraging brand-name ingredients in LTOs is also a great way to create buzz and engagement when adding a unique dish, drink or dessert to your menu mix.

Less prep: Datassential cites running out of product and training staff as the top challenges facing operators when executing LTOs.3 Pre-made, pre-portioned ingredients that simplify preparation help operators save time and money, making an LTO a more seamless fit into the menu.

Chef Minkoff called to mind a few examples of successful LTOs that featured Mondelēz International products — innovative items that drove sales growth and increased customer acquisition and retention rates. “Top of mind is Krispy Kreme’s Total Solar Eclipse Donut with an OREO cookie and OREO cookie pieces,” he said. “Also, the Ultimate Cookie Blizzard at DQ featured three beloved Mondelēz International brands: OREO, CHIPS AHOY! and NUTTER BUTTER.”

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1. Littman, Julie, “Why Consumers, Not Restaurants, Are Dictating Value,” Restaurant Dive, September 23, 2024
2. Kostuch Media Ltd., “A Strong LTO Strategy Helps Operators Retain and Grow Their Customer Base,” Foodservice Hospitality, March 7, 2024
3. Datassential, The State of the LTO, 2024
4. Datassential, Keynote Report: Limited Time Offers, 2024
5. Ulie, Chuck, “Seeking Value and Convenience, Families Are Dining Out More than Last Year,” CSP, July 30, 2024
6. Datassential, Foodbytes: Dessert Decadence, June 2023
7. Datassential, Food Trends, 2024