How to Leverage Value-Oriented LTOs

Rolling out limited-time offers (LTOs) is a proven way to create buzz, attract customers, and drive profits. In today’s economic climate, focusing on value-oriented LTOs—which particularly resonate with budget-conscious consumers—can help accomplish these goals. Popular value delivery methods include in-app discounts, loyalty program rewards, value bundles, combo meal deals, and buy-one-get one free specials. 

Fortunately, in spite of challenging financial conditions, consumers continue to expand their food and beverage spending away from home, according to a survey of 1,500 consumers. In 2024, 42% indicate spending more away from home this year compared to last year.¹ 

As menu prices increase, consumers are looking for affordability. To save money dining out, 53% order from the value menu, and 44% take advantage of LTOs, especially GenZ at 49%. A large number (41%) join loyalty clubs/rewards programs while 39% look for deals directly on restaurant or delivery apps.¹

On your part, the secret to marrying value with profitability lies in adopting a calculated strategy combined with the most craveable offerings. Here are two approaches:

Focus on high-volume, low-cost side items

Don’t feel compelled to “give away” your newly launched entrée. It might not be your best LTO prospect for profit building. Rather, draw guests in the door with value deals on popular high-volume, low-cost side items.

The quick-service restaurant chain, Taco Bell, found success by leaning on its Nacho Fries side. The chain’s most successful product launch in its history, it was first offered as an LTO in 2018. The taco giant picked fries for this promotion due to their proven popularity as a side dish—confident that guests would purchase additional items to complement their fries.² This could include an order from the chain’s expanding Cantina Chicken Menu, which was launched in March 2024. 

While Nacho Fries come back periodically, in November 2023, Taco Bell launched a 30-day Nacho Fries Lover’s Pass LTO exclusively available to loyalty rewards members, who happen to spend 40% more per year than non-members.²  Available only on the chain’s app, the month-long Nacho Fries Lover’s Pass promotion allowed one daily order of regular Nacho Fries with a choice of one of six sauces for a total of $10. 

Target low-traffic times of day

Regardless of the meal deal you introduce, boosting sales by targeting specific times can effectively draw in foot traffic during typically slower business hours. Consider implementing early bird or late-night discounts, which you can offer regularly or in conjunction with special occasions. 

For example, Texas Roadhouse promotes a low-priced Early Dine Menu available from 3 to 6 p.m. Monday through Thursday and from 11 a.m. to 2 p.m. on Friday and Saturday.³ Guests can choose from a selection of 11 meals priced at $10.99 each. Popular chicken dishes like Grilled BBQ Chicken, Herb-Crusted Chicken and Country Fried Chicken—each with a choice of two sides—are among the top favorites on the menu, according to its website.3

Televised football games offer another prime opportunity for daypart LTOs. In 2023, Chili’s optimized these sports-watching occasions by offering special deals on Saturdays and Sundays as well as from 3 p.m. until closing on Mondays and Thursdays throughout football season. Promotions included wings starting at $7, $6 Loaded Queso Fries, and a buy-one-get-one-free deal on eight-piece boneless chicken wings on Mondays.⁴

Overall, you can help drive both immediate revenue and sustainable growth by focusing on strategic, cost-effective value-centric promotions. You’ll attract more guests and encourage higher spending while building a loyal customer base.

Sources

1. International Foodservice Manufacturers Association’s IFMA CPP 2024 report, May 2024

2. Klein, Danny, “Taco Bell Subscribes to the Next Generation of Value,” QSR magazine, Dec. 15, 2023, https://www.qsrmagazine.com/story/taco-bell-subscribes-to-the-next-generation-of-value/

3. Brenda, “Texas Roadhouse Early Dine Menu 2024 & Hours (Updated August),” texasroadhouse.com, Sept. 5, 2024, https://texasroadhousemenuwithprices.com/texas-roadhouse-early-dine/#google_vignette

4. Cafarella, Haley, “NFL and College Football 2023: Fast-Food Restaurant Specials,” franchisewire.com, Sept. 16, 2023, https://www.franchisewire.com/2023-nfl-and-college-football-fast-food-restaurant-specials-deals-and-promotions/