LIMITED TIME, LASTING IMPACT

Megan Conceição explores The Rise of LTOs

The Big Idea:

Limited-Time Offers (LTOs) have become a powerful strategy in the beverage industry, offering a low-risk, high-reward way to drive consumer excitement, tap into fast-moving trends, and boost footfall. By blending flavor innovation with cultural relevance and urgency, LTOs cater perfectly to Gen Z preferences and economic realities, making them a key tool for staying competitive and relevant.

LIMITED TIME,LASING IMPACT

What started with a pumpkin spice latte has become an industry-wide movement. Buzzy, fun and undeniably enticing, Limited-Time Offers (LTOs) are taking the beverage space by storm, becoming - somewhat paradoxically - mainstays on menu boards.

For operators, they’re a powerful way to cut through the noise and spark consumer interest. For inflation-weary consumers, they offer affordable indulgence amid ongoing economic uncertainty. The result? A win-win that’s hard to ignore.

So why do LTOs feel so perfectly tuned to the current moment?

Menu boards have always reflected generational trends. Today, with Gen-Z consumers flipping the script on coffee consumption by reaching for iced drinks layered with creamers and sweeteners, LTOs are emerging as the ideal format to cater to changing preferences. Typically built around some form of flavor innovation, these short-term launches offer a fresh and flexible way to keep menus feeling dynamic and relevant.

Moreover, with the zeitgeist moving at breakneck speed, overhauling an entire menu just to keep pace simply isn’t practical. That’s where LTOs shine; featuring only a few SKUs, for a limited window, they offer operators a low-risk, high-reward opportunity to tap into viral trends and flavors. Recent examples include Dutch Bros’ innovative Mochi Berry offering for spring - which plays into the growing appeal of textures and global flavors in beverages - and the widespread adoption of pistachio-flavored beverages by global operators such as Starbucks and Blank Street.

It’s not just about flavor.

The ephemeral nature of LTOs brings a slew of other strategic benefits. They generate excitement, boost brand engagement, and create a sense of urgency that’s often hard to replicate through core range offerings. Crucially, this is helping address a critical operational challenge: footfall as consumers get increasingly judicious about where, when and how they spend. According to recent research by Technomic, 91% of consumers say they’re more likely to visit a chain that offers LTOs or new items.

To fully harness the potential of LTOs and their strategic benefits, operators must deliver novelty and new experiences - without compromising on accessibility or value. One of the most effective ways to do that? Lean into the growing convergence between pop culture, flavor trends, and brand collaboration. Adjacent categories such as desserts and sweet snacking offer obvious inspiration, as seen in the success of Starbucks’ Tiramisu range or Pret A Manger’s Ube Crème Brûlée Latte in the U.K.

But the opportunity doesn’t stop at sweet. More unexpected inspiration - from sauces to savory condiments - is also gaining traction. Think hot honey coffees or miso caramel lattes: bold, boundary-pushing flavor profiles that speak directly to consumers’ appetite for the new and unexpected. With a dedicated product development team and insights-led innovation at its core, Finlays is uniquely positioned to help operators stay ahead of the curve, bringing LTOs to life that are not only trend-forward but commercially effective.

To fully harness the potential of LTOs and their strategic benefits, operators must deliver novelty and new experiences - without compromising on accessibility or value.”

Megan Conceição on LTOs

Megan Conceição

Insight Analyst, Finlays Solutions