Limited Time Offer Pumpkin Beverages Spice Up Business for Foodservice Operators

Chicago, September 22, 2015 — It’s that time a year again for falling leaves, football games, and the annual tradition of limited-time offer (LTO) pumpkin specialty drinks. Turns out that it’s one of the favorite times of the year for foodservice operators who offer the limited time drinks because their business benefits in more ways than one, reports The NPD Group, a leading global information company.

The seasonal beverage offers can spur additional purchases by established customers, bring in new customers, draw customers from competitors, and stimulate business during slow periods, according to research from NPD’s Checkout Tracking, which harvests receipts from more than 35,000 diners to track consumer purchase behavior.  An analysis of the purchase cycle of pumpkin spice latte buyers reveals that these lattes are likely considered to be an “indulgent” purchase, and the vast majority of these purchasers, 72 percent, did so just once.  About 20 percent of pumpkin spice latte customers purchased the item twice, and about 8 percent made three or more purchases during the offer period.

In addition to increasing visits and visit frequency, seasonal beverages also produce higher checks, NPD found. During fall and winter 2014, the average check for pumpkin latte buyers was $7.81, compared with $6.67 for non-buyers. Similarly, the average check for buyers of a white mocha, another popular seasonal beverage, was $8.37, compared with just $6.84 for non-buyers.  Consumers’ purchase of food items in addition to the beverage contributed to the higher check average, according to the Checkout Tracking analysis.

To determine the impact of limited-time offers on visit frequency, NPD also examined the purchase cycle of a seasonal shake offer at another major chain. The data revealed that these shake purchasers tended to be the restaurant’s most loyal customers, with higher purchase frequency rates, especially during the promotional period.  Shake buyers made 5.7 visits in the two-month period before the limited-time offer, and then made an additional visit during the limited-time offer period. Meanwhile non-shake buyers made only 4.7 visits prior to the promotion and 4.4 visits during the limited-time offer.

“Considering the battle for traffic share in the restaurant industry, it’s critical to offer unique, craveable menu items that attract both new customers and keep current ones coming back,” says Bonnie Riggs, NPD restaurant industry analyst. “For the restaurant operator, seasonal beverages have a positive impact on visit frequency and check averages as consumers tend to purchase food along with the seasonal beverage. It doesn’t get much better than that.”


Related Press Releases

An Increasing Number of Restaurant Meals Are Being Eaten At Home Because That’s Where U.S. Consumers Want to Be
An Increasing Number of Restaurant Meals Are Being Eaten At Home Because That’s Where U.S. Consumers Want to Be

U.S. consumers are staying at home more and as a result an increasing number of the meals they eat at home are coming from a restaurant or foodservice outlet, reports The NPD Group.

Chicken Fight: Are Chicken Strips Cannibalizing Chicken Nugget Servings At Foodservice?
Chicken Fight: Are Chicken Strips Cannibalizing Chicken Nugget Servings At Foodservice?

Chicken strip servings at restaurants and foodservice outlets increased by 16 percent in the quarter ending September 2018 compared to same period last year whereas chicken nugget servings declined by 3 percent, reports The NPD Group. Are chicken strips cannibalizing chicken nugget restaurant servings.

The Flexibility of On-Demand Meal Kits Strikes a Chord with Consumers
The Flexibility of On-Demand Meal Kits Strikes a Chord with Consumers

Although a subscription-based meal kit delivery service doesn’t appeal to a broad segment of the population, the meal kit concept does and with increased availability of the kits at grocery stores, online, and in restaurants, a greater number of consumers are using meal kits, reports The NPD Group.

Portion-Control Salad Dressing Catches Tailwind of Foodservice Delivery Boom
Portion-Control Salad Dressing Catches Tailwind of Foodservice Delivery Boom

Foodservice delivery sales grew by 20 percent over the past 5 years and riding on this boom is portion-control salad dressing, a delivery order staple.


Press Contact

Kim McLynn
847-692-1781
kim.mclynn@npd.com

@npdfood

The NPD Group, Inc.
900 West Shore Road
Port Washington, NY 11050

Want more?

Complete this form to hear from NPD.


Newsletter

Subscribe and get key market trends and insights relevant to your industry each month.

We will not sell your information. View privacy notice.

Follow Us

Privacy Notices.

© The NPD Group, Inc.