Chart from Meaningful vision
Secret ingredients behind popular price promotion
Campaigns offering percentage discounts constituted 17% of all LTO’s, gaining in popularity last year.
The majority of price promotions currently offered on the market are Limited Time Offers valid for only a few days or weeks. Most promotions, of all types, involve some kind of Special Price Offer, and this is also the preferred tactic for LTO’s. Gaining significantly in prominence throughout 2023, Special Price Offers now comprise half of all Limited Time Offers in the industry, according to Meaningful Vision’s data.
Campaigns offering percentage discounts constituted 17% of all LTO’s, gaining in popularity last year. The average discount offered by promotions in 2023 stood at around 25%, with certain items reaching a maximum discount volume of 50%.
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Free or additional product offers comprised 15% of all promotions across all channels, maintaining a consistent rate throughout 2023. Absolute discounting, measured in £’s rather than a percentage, is a less favoured promotional technique, holding a considerably smaller share compared to price promotions or special prices. Meaningful Vision’s data indicates a slight decline in the popularity of this promotional activity in 2023.
According to Meaningful Vision’s data, 13% of all menu positions in fast food are represented by limited-time offers.
“LTOs are most popular in the Burger, Coffee Shop, Bakery and Sandwich segments. These offers deliver excellent value for money, aiding in customer retention and acquisition, particularly crucial during periods of industry-wide price inflation, as currently witnessed.” Maria Vanifatova, CEO Meaningful Vision.
