Limited-time offers effective tools for summer: NPD

July 29, 2014, Toronto – Limited-time offers can be effective tools to increase brand awareness,
attract visitors and bring in revenue, suggests the NPD Group.

July 29, 2014, Toronto – Limited-time offers can be effective tools to increase brand awareness,
attract visitors and bring in revenue, suggests the NPD Group.

There are more than 72,000
restaurants in Canada, all of which are clamouring for clientele.
Unfortunately, according to the research group,
the number of customers going through their doors decreased by one per
cent in 2013 to just over 6.6 billion annual visits and, looking ahead
to the rest of 2014, traffic is predicted to remain flat.

The summer
months, however, are a ray of sunshine for the country’s crowded
foodservice industry, as the warm weather and increased social outings
typically mean a spike in restaurant traffic. In preparation for this,
operators put an emphasis on promoting seasonal food and beverage items,
but maintain their competitive edge with one crucial tactic:
limited-time offers (LTOs). 

Currently, 45 per cent of the Canadian population visits a restaurant
every day, which has decreased from 46.3 per cent one year ago.
Restaurateurs hoping to draw crowds will add new twists to summer
favourites with fresh menu items and original culinary techniques, and
will introduce specialized service for an improved overall dining
experience. Many of these offers will be in the form of LTOs created to
generate interest and increase sales.

“From a global perspective, Canada has been the second most stable
foodservice market over the last six years, but is challenged with
maintaining steady day-to-day customer traffic,” said Robert Carter,
executive director of Foodservice at The NPD Group, in a news release. “LTOs are an
important part of the restaurant industry’s marketing initiatives –
particularly during seasonal periods – and these offers, designed to be
short lived, can be an effective tool to increase brand awareness,
attract visitors and bring in rapid revenue.”

Before restaurant operators start reinventing their menus, however,
they need to keep in mind the ingredients consumers are getting excited
about and the types of dishes they are gravitating towards. The most popular summer foods and beverages include barbecue pork and beef sandwiches, hotdogs, main dish salads, seafood entrées, iced tea and non-carbonated soft drinks.