As summer rolls in, restaurant operators face the annual challenge of maintaining high traffic with the allure of vacations, beach days, and sporting events. One popular strategy to draw in customers is the use of Limited Time Offers (LTOs). According to Technomics, Limited Time Offers in restaurants has grown 53% in the last four years. But are LTOs truly the golden ticket to increase traffic and profitability, or do they come with hidden pitfalls?

Delve into the world of LTOs, exploring their effectiveness and the critical role of data analytics in managing these promotions. Many organizations lack the necessary data analytics and day-to-day instrumentation processes to effectively evaluate LTOs on a large scale. It’s crucial to measure sell-through by location in real-time to maintain inventory levels, transfer products between locations if needed, and make in-cycle adjustments with broadline orders. This can help extend programs or cut them short to reduce the potential losses.

The financial implications of leftover products at the broadliner level also pay a significant role in the overall performance of LTOs. With all the costs considered, the brand should have a profitability target to ensure the juice is worth the squeeze.

As a fortune cookie might say, “Do not confuse temptation with opportunity.” Perhaps going forward, as more organizations explore Limited Time Offers they might better describe LTOs as “Let’s Think Over.’