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How to Make Limited-Time Offers More Profitable

In the battle for traffic and revenue, restaurants have made limited-time offers (LTOs) a staple of their marketing and promotion. Sixty-one percent see LTOs as profit centers for their business, and it’s easy to see why.

In a month with a successful LTO:1

  • 33% of operators reported traffic grew from 11-25%
  • 8% saw traffic gains greater than 25%
  • 39% reported an increase of 11-25% in revenue
  • 7% enjoyed revenue boosts greater than 25%

Clearly, customers are excited about new items: 65% of consumers were motivated to visit an operator specifically to order an LTO within the past month.2 But they’re also excited about new flavors. A recent report from Datassential bears this out:3

  • 59% of consumers indicate they will initially visit and return to a restaurant that offers new and unique flavors
  • 39% of consumers expect operators to offer signature flavors they can’t get anywhere else

So, for restaurants, the pressure is on to come up with new LTO ideas that connect with consumers—but without blowing up food costs or slowing down operations.

Pricing power: The avocado advantage in limited-time offers

According to Datassential, 63% of consumers love or like avocado.4 U.S. imports of Mexican avocado grew to more than 1.1 million tons in 2023, up 19% in a single year.5 Despite this, avocado is only on 46.8% of menus today, suggesting significant unmet demand.6

Moreover, when customers come across avocado at restaurants, they’re willing to pay a premium for it. LTOs featuring avocado command a 14% higher price than LTOs without avocado.7

Avocado Pricing Premium in LTOs8

 

With Avocado

Without Avocado

%Price Increase

App, entrée, side LTOs

$10.91

$10.50

+4%

Burger LTOs

$10.97

$9.40

+17%

Sandwich LTOs

$9.78

$8.73

+12%

Wrap LTOs

$7.79

$6.71

+16%

Beyond great flavor, these avocado spreads bring menu appeal and profitability to operators pressed by shrinking margins.

Versatility across the menu

Here are a few recipes to consider:

Crispy Buffalo Chicken Sandwich with Dill Avocado, Slaw and Fries
Indulge your customers with this Crispy Buffalo Chicken Sandwich. It’s irresistibly crispy, zesty and packed with flavor. View Recipe »

Greek Gyro Wrap with Cucumber Tzatziki Avocado
This gyro features the perfect blend of traditional flavors with a delightful twist, making it an excellent addition to your sandwich menu. View Recipe »

Smoked Salmon Charcuterie Board
Looking to add some flair to your breakfast or brunch spread? This smoked salmon charcuterie board has a little something for everyone. View Recipe »

Greek Fries with Cucumber Tzatziki Avocado
A lighter version of loaded fries, these are different and delicious. You’ll definitely have customers coming back for more. View Recipe »

You’re one spread away from a delicious LTO

Despite avocado's popularity, avocado product suppliers have been slow to innovate. The truth is avocado can be far more than base for guacamole or toppings on a salad. Spark creativity with delicious, new ways to satisfy your customers, generate higher profits, and keep people coming back.

Content courtesy of Simplot Foods

1Datassential, SNAP! Keynote, 2023
2Datassential LTO Keynote June 2022
3Datassential, Flavor Keynote, 2023
4Datassential, Consumer Affinity, March 2024
5USDA, Avocado Annual Report, April 2024
6Datassential, MenuTrends, March 2024
7Datassential, Menu Trends, 2023
8Datassential, Concept Testing, March 2023