If you have reduced the number of items on your menu to maintain profitability and seek greater efficiency in the face of labor and logistics challenges, you are not alone. In the last 5 years, permanent menu items have declined -24% while LTOs are up +25%¹. In fact, the top 250 restaurant chains launched 4,109 LTOs in 2021, up 28% over 2020². With traffic slowing down over the summer,³including LTOs in your promotion plans may be a necessity, and if it’s done right an LTO can increase customer satisfaction as well as improve margins.

The Challenges of LTOs

There is no doubt that introducing an LTO can be a challenge. 34% of operators say implementing an LTO can cause issues². The most common issues are training staff to make a temporary item, using ingredients in only one item, and running out of product.

Why LTOs Are Worth the Effort

LTOs can offset slimmed-down menus. Menus shrank an average of 10.2% during the pandemic⁴. But when consumers were asked what was the most important thing they are looking for operators to do with their menu, 28% said they wanted new items rotated in⁵. And 30% of QSR customers cite ‘new menu items’ as a motivation to visit⁶, while 61% of global consumers say they would be more likely to dine in when new or unique menu items are offered⁷.

How to Implement a Successful LTO

The goal of an LTO is to appeal to customers with consistent quality, while not adding to costs. With the increase in take-out and delivery since the pandemic, this means that the item must travel well. To be cost-effective, the item must be easy to prep and execute, should not require new SKUs, and should deliver a higher margin with lower food costs. Frozen foods are a cost-effective option that ensure consistent quality, require minimal prep, simplify the recipe, and solve many challenges that come with implementing LTOs.

Fries Are Perfect for LTOs

An easy way to achieve all of the above is to use fries as the base for your LTO. They are one of the most profitable food items on the menu⁸. And they are one of the most popular items on any menu too⁹. By using frozen fries, you eliminate cutting every potato by hand, easing the labor demand. Plus, frozen fries are perceived as significantly more profitable than hand-cut fries.¹² With virtually no prep time and faster cook time, frozen fries improve all efficiency while being a profit driver.

Perhaps best of all, fries are ranked as the easiest side to turn into an LTO¹⁰. Fries go well with so many other flavors, they can be matched with items you already have in inventory. The possibilities are limitless and loaded french fries with toppings and sauces commands a higher price point on menus. In fact, “loaded” fry dishes command a median price that is $2.81 higher than french fry apps and sides overall.⁴ 75% of consumers are interested in ordering topped & loaded french fry dishes¹¹ so make sure to offer craveable options like Cubano Loaded Fries or the Loaded Tzatziki Fries.

For more ideas on how fries can help improve margins and customer satisfaction, visit Lambweston.com.

Content courtesy of Lamb Weston

¹Impact of a Recession on Foodservice, Technomic August 22, 2022

²Datassential Trendspotting FoodBytes Volume 102

³Technomic Insight Consumer Platinum

⁴Datassential MenuTrends

⁵Datassential Covid 19 Report 31 8.21.2020

⁶Datassential Quick Service Segment Guide June 2022

⁷Technomic Consumer Survey GFPP Fall 2021

⁸Technomic 2018

⁹NPD Group/CREST July 2019

¹⁰Datassential LTO report 2017

¹¹AmpliFRY 2021

¹²AmpliFRY 2022/Datassential