Chicago, Dec. 06, 2023 (GLOBE NEWSWIRE) -- Limited-time offers (LTOs), a long-standing tradition in the foodservice industry, play a pivotal role in generating buzz, fostering variety and influencing consumer behavior. In a new report, Circana™, a leading advisor on the complexity of consumer behavior, analyzes over 30 unique LTOs, utilizing its longitudinal receipt panel and buyer recontact surveys to delve into the nuances of buyer behavior across diverse categories, including beverages, main dishes, side dishes, desserts and breakfast items.
LTOs are revealed to build excitement for all consumers and drive engagement with existing, heavier buyers. As heavy buyers naturally fade, LTOs emerge as tactical approaches to maintain engagement and boost spending. The report highlights the delicate balance of addressing cannibalization risks by implementing strategic pricing, targeting specific behaviors and introducing LTOs with premium features, or targeting new behaviors such as individual portions or breakfast items.
“Nostalgia is a powerful ingredient in the recipe for LTO success, targeting older consumers by resurrecting previously discontinued menu items,” said David Portalatin, senior vice president and industry advisor, Food and Foodservice, Circana. “While LTOs are designed to be temporary, their impact on the perception of a brand is lasting, contributing to maintaining a positive brand image even after the limited-time offer concludes.”
Innovation doesn’t always demand a revolutionary concept; sometimes, simplicity prevails. Chipotle introduced the Chicken al Pastor as an LTO in the spring of 2023, captivating the taste buds of its customer base, with a quarter of their buyers actively participating during the offer period. The Chicken al Pastor not only engaged existing buyers, but also drove those buyers to spend more compared with their previous visits.
Priced slightly higher than the regular chicken offering, over two-thirds of buyers considered it to be of very or fairly good value for the price, contributing to an increased party check. Impressively, nearly 80% of Chicken al Pastor buyers expressed an intention to visit Chipotle more frequently, showcasing the LTO’s influence in reshaping consumer behavior and fostering brand loyalty. Chipotle’s success with the Chicken al Pastor underscores the pivotal role that carefully crafted and strategically priced LTOs can play in driving customer engagement and market competitiveness.
For more information and to purchase the full report, contact your Circana representative.
About Circana’s Checkout
Checkout offers robust consumer data to understand buyer behavior across channels plus buyer analytics to help keep current customers and win new ones. Its omnipanel of 150,000 actively engaged buyers provides receipt-based data from online and in-store purchases. Checkout’s longitudinal data illuminates trends in behavior, including migration to online shopping by category and consumer demographics. Buyer analytics deliver insight into key customers, brand loyalty, brand leakage/lift, brand launches and more.
About Circana
Circana is the leading advisor on the complexity of consumer behavior. Through unparalleled technology, advanced analytics, cross-industry data and deep expertise, we provide clarity that helps almost 7,000 of the world’s leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand, and outpace the competition. Learn more at circana.com.
Shelley Hughes Circana +1 312-731-1782 Shelley.Hughes@IRIworldwide.com
