What is LTO known as?

LTO refers to a Limited-Time Offer is a menu item, meal, discount, or special promotion that is only available for a restricted length of time. Restaurants will use LTO's to generate buzz and interest, to attract customers, boost sales, and trial new menu items.

Some of the occasions that an LTO may be used include-
  • Seasonal items
  • Holiday offers
  • Meal specials (promotional)
  • New product introduction
  • Short-term discounts
  • Drink offers

Due to the short life cycle of LTOs, it often encourages a sense of urgency among guests.

How Does an LTO Work in Restaurants?

Restaurants can offer an LTO for a specific duration and use a variety of different ways to market it. Here's how the process typically works-

  • Restaurant develops a time-limited item or special offer.
  • Item or offer is entered in the POS system and added to the menu.
  • The customer is able to order this item during the offer period.
  • Sales results are recorded and measured.
  • The item or special offer is discontinued when the promotional period is completed.
  • Some successful LTOs might later become permanent menu items.