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LTOs: Taking advantage of trend momentum

LTO trendy brownies with pink background
BY: Maddie Lambert

Maddie Lambert

CHICAGO — Dessert has become a staple of eating occasions and a consistent sales driver. It’s the most prolific limited-time offer (LTO) category across restaurant segments, with 671 menu introductions just last year, according to Datassential’s State of the LTO report.

LTOs offer a chance for commercial bakeries and menu developers to hard launch innovative concepts and test which flavors and combinations are resonating at the current moment, especially as younger consumers continue seeking bold and novel flavor experiences.

“Younger generations are more likely to reach beyond the traditional formats and flavors within the dessert industry,” Mintel stated in its Dessert Industry Trends in the US report. “For example, Gen Z and millennials outpace Gen X and baby boomers with a preference for unique creations in the cookie market … Gen Z’s adventurous, sense-driven palates point toward the potential for targeted dessert innovation.”

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In response to this surge for dessert, Mondelez International released four trends to help diversify portfolios and scoop up LTO sales.

Trend No. 1: Offer a World of Flavors

Interest in international flavors is all over the map, with 47% of US consumers interested in global desserts, reports Datassential.

Popular items right now include gulab jamun (syrupy South Asian donut holes), Medovik (a Russian cake with eight layers), and breakfast and dessert crossovers like red velvet pancakes. Innovative mashups are also gaining traction, such as “Cronuts” and Churro waffles.

Trend No. 2: Go from Conventional to Creative

In particular, Gen Z’s purchasing decisions are fueled by a desire for nostalgia. Datassential cited “grew up having” as its top motivator for product purchases when grocery shopping. More than a quarter of Gen Z also said brand recognition was an important factor feeding into purchasing decisions.

Incorporating well-known branded ingredients in classic dessert concepts can evoke nostalgia while appealing to the modern preference for novelty, which is also known as “newstalgia.”

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Trend No. 3: Incorporate Seasonal Flavors and Formats

Of course, pumpkin spice reigns supreme in the fall, and lemonade and watermelon dominate summer menus. Including ingredients that are generally available during part of the year will help position LTO desserts as “get it before it’s gone” items with a short window of opportunity. Placing timestamps on product launches generates a sense of buzz-worthiness that appeals to consumers seeking on-trend offerings.

Seasonality sells, and it’s the top factor in how foodservice operators across all segments promote or upsell dishes that feature experimental menu items.

Elevating classic treats with a touch of LTO factor — think pumpkin walnut chocolate chip, chocolate marshmallow, mint cookies and cream — offers consumers new ways to enjoy their most-purchased snacks.

Trend No. 4: Add Little Treats (They’re a Big Deal)

“Little treat culture” — affordable and indulgent dessert bites — is trending in a big way for consumers.

The trend is especially popular with Gen Z; 41% of whom have a dedicated “treat” budget, with 1 in 5 buying a little treat daily, according to NCSolutions’ Little Treats Consumer Statistics and Trends. The report also found that 62% of consumers consider little treats crucial to self-care, and 47% consider them to be a sweet snack as opposed to savory.

Social media has been a catalyst for this trend frenzy. Searches for “mini dessert ideas” are up 529% on Pinterest, as reported by Elizabeth Fogarty in Better Homes & Gardens.

This spells opportunity for ready-to-serve, mini and speed-scratch desserts such as cake pops, truffles, brownie bites and cupcake flights.

To make the most of LTOs, commercial bakeries, foodservice operators and restaurant owners should use social media to inform consumers of the new, innovative desserts, as well as highlight the familiar and trendy key elements that inspired the creation.

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