Which LTO category has the highest proportion in fast-food menus?
QSRs are putting more thought into LTOs as a way to enhance value and attract customers.
Meaningful Vision’s recent Market Intelligence report discovers that the share of LTOs and seasonal items (available for a maximum of three months) comprises roughly 15% of the QSR chains' menus, with a 2% increase over the past year. Limited Time Offers are gaining importance, with various categories focusing on enhancing value to retain and attract customers.
Categories with the highest proportion of time-limited items include cookies and cakes (40%), bakery (25%), sandwiches and hot beverages (20%), whilst pizzas, cold drinks, snacks, and salads occupy the lower end of this spectrum with less than 10%.
Individual approaches to menu updates vary widely. For example, McDonald's introduces temporary menu items every few weeks, to encourage new trials, while providing exclusive in-app pricing for their loyal customers. Conversely, KFC adheres to a standard menu with minimal seasonal additions. Starbucks, Costa, and Pret update their menus quarterly.
"Overall, consumers are feeling the economic pinch, buying few items and looking for greater value for money. Brands have responded by using LTOs in an effort to provide increased value and keep customers coming back. With seasonal menus and LTOs playing a pivotal role in each company's product assortment and promotional strategy, keeping an eye on the competition helps in designing effective and timely strategies in response to shifts in customer behaviour”, comments Meaningful Vision.
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