Data Dive Shows What LTOs Actually Drive Metrics
The QSR industry is awash in innovation and discounting, from the smart traffic drivers like nacho fries and donut sticks to the weird unicorn and fruit loops shakes and the endless number of bundles and ultra-cheap add-ons.
What actually drives a higher percentage of overall QSR traffic or visit share, however, is the big question. Even the savviest brands at some point are throwing the proverbial ideas at a wall and seeing what sticks. For every wild success, there are a handful of quie,t mediocre performers or outright failures across QSR.
Data and analytics firm Sense360 took a close look at visit data to see what really performed well, giving a little insight into what attributes actually drive visit share and sales in this competitive market.
The firm put out a summary of this research dubbed The Key Drivers to a Successful LTO to outline some of the 209 limited-time offers from 68 QSR brands in 2018.
There were three big findings:
Among the many LTOs of 2018, there were a few standouts.
Chipotle drove 0.3 percent visit share lift and a 25.1 percent year-over-year lift with the Late Night Taco Happy Hour in the Miami and Dallas markets. The promotion featured $2 tacos with a drink purchase after 8 p.m. It drew 0.3 additional visit share nationally.
Burger King had great success with a pancake discount. A November LTO that offered three pancakes for 89 cents drove 0.46 percent national visit share and a 10.2 percent year-over-year lift. It was one of the few new menu item discounts across QSR that really drove visit share lift.
Taco Bell saw great results from its annual Steal a Base, Steal a Taco promotion around the World Series. Customers could get a free Doritos Locos Taco from 2 p.m. to 6 p.m. on November 1, 2018. It drove a 1.1 percent lift in national QSR visit share and a 23.3 percent lift year-over-year.
But the strongest LTO came out of Chick-fil-A, which introduced a Key Lime Shake in Austin in October 2018. The brand saw a 2.6 percent share lift and a 45.2 percent year-over-year lift. It was novel because it was one of the few new menu items that drove visit share without a discount—the shake was added to the menu across the system in March 2019.
See the full report at Sense360.