In restaurants, these might include offering a discount on specific menu items or certain days for a set time. Limited-time offers differ from other promotional offers because they only run for a short period.

An LTO might include promoting, or offering discounts on, seasonal menu items for a month or a single weekend of deals. A classic example of a limited-time offer is the Starbucks Pumpkin Spice Latte. First introduced in , the Pumpkin Spice Latte is a seasonal beverage sold at Starbucks during the fall.

Pumpkin Spice Lattes taste great — but they also have a specific marketing tactic based on their limited-time availability. An article on Pumpkin Spice Lattes in Forbes noted the following:. products that are available only for a limited-time have a kind of built-in marketing that can grow in impact over time.

LTOs are essential to small business management and marketing and can help your restaurant drive sales in several ways. The main reason limited-time offers are so effective is that they create a sense of urgency and scarcity.

If a menu item is only on sale or discounted for a short period, customers are encouraged to visit the restaurant sooner rather than later. As a result, owners must work hard to encourage customers to visit them for the first time. A limited-time offer will encourage them to give your restaurant a try.

It could convert them from a first-time customer into a regular. Loyal customers are arguably even more important than new ones in the restaurant industry. Delicious food and excellent service are, of course, essential if you want to bring customers back again and again, but limited-time offers help too.

Limited-time offers encourage your loyal customers to return and make the most of them. This will keep your customers loyal by rewarding them with special discounts and new menu items.

A benefit of limited-time offers that can also help drive sales in your restaurant is that they allow you to test and promote new products.

Adding new menu items to your restaurant can be costly, especially if those products turn out not to be popular. You can also get feedback before adding them to the menu permanently and at full price. A sense of urgency is part of what makes limited-time offers work so well. The wording is a big part of this.

Make it clear that this offer is limited. If you create a strong enough sense of urgency, customers will be eager to book a table at your restaurant or place an order right away. The same goes for online ordering. Putting a sign outside of your restaurant advertising your limited-time offer is good.

Still, for a really successful limited offer campaign, you should advertise online too. That means promoting your offer across all your social media channels — Facebook, Twitter, and Instagram — and via email too. Read more: Restaurant Email Marketing Done Right: 12 Ideas to Woo Customers.

If you use any customer relationship management CRM software, make sure you promote your limited-time offers there as well. Make sure your staff is well aware of the offer and prepared for it.

If you use a POS system for small business use, and it comes with pre-loaded menu items, make sure you update it with the offer. Do everything necessary to fulfill the limited-time offer smoothly for customers and your employees. Making the most of seasonal trends and events will help you market your limited-time offers effectively.

Times of the year have different flavors and menu items associated with them. Pumpkins, apples, maple syrup in fall, gingerbread and peppermint in winter menus , and coconut and pineapple in the summer are a handful of examples of seasonal flavors.

You might also like: 10 Restaurant Food Promotion Ideas to Say Goodbye to the Summer Season. You can also make the most of other trends and events.

Download our Food Holiday Calendar for to get more ideas of restaurant promotions you can use for various food-related holidays. Limited-time offers should encourage customers to purchase today because they are getting something unique and exclusive out of it.

Limited edition menu items that are only available for a short period give a sense of exclusivity and can increase the average order value at your restaurant. Restaurant discounts can be offered in various ways. And as a business owner , choosing the right type of discount for your restaurant business is important.

This discount allows customers to purchase one menu item at full price and receive a second item of equal or lesser value for free. This is a trendy discount for restaurants that offer combo meals or platters because it effectively doubles the value of the meal.

Once you have this in place, you can start offering BOGO deals to your customers. To do this, create a rule that triggers the discount when a particular item is purchased.

For example, you could offer a BOGO deal on entree food when a customer orders an appetizer. Offering combo deals is a great way to increase restaurant sales and boost profitability. Combining two or more menu items into one discounted package dramatically increases customer satisfaction and encourages upselling and cross selling.

For example, a restaurant could offer a combo deal that includes an appetizer, entrée, and dessert for a reduced price. This type of discount is especially effective for customers who are looking for a complete dining experience. Discounts based on time include happy hour specials and early bird specials.

This is a great way to bring in customers during slower times or give them the incentive to return at a particular time. Many restaurants offer discounts during specific times of the day or week.

Others may provide discounts for customers who dine during off-peak hours, such as early bird specials for those who eat dinner before PM. With this type of discount, you essentially give your customers a break on the price of their food when they order through your online ordering platform.

To sweeten the deal, you could also offer a first-party discount on orders placed through Google food ordering service. This means that the restaurant is essentially eating the cost of those items, which can add up quickly. As the name suggests, this discount is exclusively for the members of AARP American Association of Retired Persons.

It offers a significant percentage of food and beverage purchases when dining with this card at participating restaurants. The AARP dining discount is a one-size-fits-all solution to winning over the hearts and minds of your seniors.

It is tough to get any better than this, so make good use of it to keep your customers returning for more. One popular type of restaurant discount is the calendar-based discount. This discount is usually offered on specific days of the week or month or during certain periods throughout the year.

You can also offer calendar-based discounts as a promotion or marketing campaign. Military discounts are a great way to show appreciation for the men and women who have served our country. Many restaurants offer discounts to active-duty military personnel, veterans, and their families.

It may be available for dine-in, take-out, curbside pick up , or delivery orders. Some restaurants require proof of service, such as a military ID card, while others ask that you mention the discount at the time of purchase or when making your restaurant reservations.

Dollar-off discounts are a great way to encourage customers to try your restaurant. To make sure that your dollar-off discount is effective, advertise it prominently and make sure that your staff is aware of it so that they can remind customers of the offer.

You may also consider limiting the number of discounted bills per customer or day to prevent abuse.

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