In the dynamic and rapidly changing food-service industry, strategic promotional tools, such as Meal Deals and Limited Time Offers (LTOs) are crucial methods to increase engagement with customers and drive growth. As we analyse data gathered over the first quarter of 2025, distinct trends emerge, revealing the impact promotional activities, on consumer behaviour and revenue, across various segments.
The Growing Appeal of Meal Deals
Meal Deals are designed to offer enhanced value, bundling items to provide customers with a more attractive proposition than purchasing individual products. Q1 2025 data underscores their increasing importance, particularly within the fast-food and pizza sectors. The share of meal deals in fast-food outlets saw a notable increase, climbing from 15% to 17% year-over-year. Even more significant was their role in the pizza segment, where robust growth saw the share climb from 16% to 20%. This indicates a strong consumer appetite for bundled offerings that simplify choices and deliver savings, whether perceived, or real.
Interestingly, while the average price of meal deals across the board saw an 8% increase year-on-year, outpacing the price hikes on individual items, pizza meal deals being a unique exception. Despite prevailing inflationary pressures, the average price for pizza meal deals actually experienced a slight decline of 2%. This strategic pricing in the pizza market could be a key factor in its substantial growth in meal deal share, suggesting that price sensitivity continues to play a vital role in this segment.
Limited Time Offers: Driving Urgency and Innovation
Limited Time Offers (LTOs) serve as another powerful instrument for customer engagement, leveraging seasonal ingredients, unique concepts, or promotional items to create a sense of urgency and novelty. These fleeting additions to the menu are designed to attract new customers and encourage repeat visits by offering something distinct and memorable.
As of Q1 2025, LTOs constitute approximately 5% of the overall menu offerings, a figure that has remained stable over the past year. On average, LTOs are priced 5% higher than regular menu items, reflecting their often premium or specialised nature. The segments demonstrating the highest propensity for launching LTOs are burgers, coffee, and sandwiches.
Burger chains consistently lead in LTO innovation, frequently introducing unique combinations or premium ingredients for a limited run, sparking consumer interest and excitement. Coffee establishments closely follow suit, skilfully utilizing seasonal flavours and beverages to stimulate repeat visits and maintain menu freshness. Similarly, sandwich brands effectively deploy LTOs, featuring limited-run fillings or combinations to differentiate themselves in a competitive market. Collectively, these segments exemplify how LTOs can be effectively utilised to boost customer engagement and ensure menus remain fresh, exciting, and relevant.
Watch our webinar Maximising the Impact of Promotions in Foodservice in the UK to learn more on the winning promotions this year.
