Gen Z’s dining obsession and how LTOs can drive QSR success

Dish & Tell Team

Marketing

Limited-time offers (LTOs) are a key strategy for QSRs to attract and engage Gen Z consumers, who are driven by digital trends, a fear of missing out and a desire for novel and shareable experiences.

Photo: Adobe Stock

August 29, 2025 by Samir Zabaneh — Chief Executive Officer, TouchBistro

Restaurants are operating in a time of rapid customer evolution, and Gen Z is paving the way with trend-driven strategies. Digitally native and experience-driven, this generation values novelty and discovery, pushing brands to stay agile and relevant. For QSRs, limited-time offers (LTOs) are emerging as one of the most effective ways to capture their attention and build lasting engagement.

Why do LTOs work?

Limited-time offers (LTOs) — whether a menu item or promotion — have become a powerful driver of consumer behavior. Since the pandemic, LTOs have surged by more than 40%, with nearly 60% of consumers saying they’ve made a purchase out of fear of missing out. It’s a clear signal: urgency and scarcity aren’t just tactics — they’re proven strategies for driving demand and accelerating revenue.

High inflation and economic uncertainty have made the dining decision tougher for customers, making LTOs enticing. LTOs create a compelling reason to choose one restaurant over another, motivated by the allure of something new, exciting and limited. For operators, they offer a low-risk way to experiment with menu items, boost sales in the short term, and engage customers with a fresh and dynamic dining experience.

Why engaging Gen Z is important

Gen Z is uniquely attuned to the appeal of anything exclusive. With 48% of Gen Z diners saying they plan to dine out with an increased dining frequency this year, 81% say they are more motivated to visit a restaurant with an LTO — meaning now is the perfect time to activate. LTOs also attract 62% of general diners and 74% of loyalty program members.

These numbers are no coincidence — Gen Z loves novelty, thrives on social trends, and prioritizes experiences that can be shared both in person and online. Platforms like TikTok are saturated with dining content, from Starbucks’ seasonal drink launches to viral food trends like “copycat” recipes. Restaurants offering creative, bold, or offbeat LTOs have the chance to ride this wave of cultural relevance, especially when young consumers share their experiences online. For Gen Z, dining out isn’t just about the food; it’s about the experience and the story behind it. Creative LTOs tap into that need for exciting narratives, turning meals into memorable and viral moments.

Building effective LTOs for QSR success

A successful LTO requires more than a “limited-time” label — it requires a clear strategy rooted in brand identity, customer insight and urgency. QSR operators must align offers with what their audiences crave while reinforcing what their brand stands for.

Technology like an integrated POS system, restaurant management software, real-time analytics, and loyalty apps are essential to staying agile and precise, allowing operators to analyze data to develop the best executional strategy. POS systems and inventory management tools also help ensure LTOs are executed efficiently by tracking inventory levels, sales velocity, and ingredient usage in real time. Operators can also consider offering LTOs that feature items that, based on inventory management and POS tracking, are high-value and highly profitable to maximize appeal and revenue potential.

Additionally, promoting LTOs via TikTok and marketing efforts, paired with location-specific push notifications through a restaurant’s app, can create a powerful combination that drives foot traffic. QR codes offer another avenue, allowing diners to unlock bonus LTO perks or loyalty program points, turning a simple purchase into a more rewarding experience.

Scarcity fuels urgency, and urgency drives action. Time-sensitive campaigns, like “while supplies last,” push customers to act now, not later. When QSRs highlight limited availability in their messaging, they turn LTOs into must-have moments that convert interest into immediate sales.

Looking ahead at the future of LTOs

The LTO landscape will continue evolving in ways that reflect larger cultural and technological trends. Gen Z, in particular, values environmentally conscious dining, opening doors for LTOs rooted in sustainable practices — 65% of Gen Zs are willing to pay more for environmentally sustainable products or services. For example, a restaurant could highlight seasonal specials featuring locally sourced, low-impact ingredients.

Additionally, AI and data-driven analytics will enhance the personalization of LTOs. Restaurants could craft dynamic menu items based on hyper-local trends or even individual customer behavior. Cultural exclusivity is also at the heart of a great LTO. Restaurants that match their offerings to unique experiences, premium ingredients or compelling cultural hooks stand out. Including a locally inspired menu item or partnering with a high-profile chef can give LTOs an edge.

Gamifying LTOs, like unlocking menu perks via app-based challenges, can also be a smart strategy. By balancing creativity with insights, QSR operators can craft unique dining experiences that go beyond the transactional and resonate deeply with customers.

Activating LTOs for success

Limited-time offers are more than promotional tactics — they’re strategic levers for driving revenue and deepening customer engagement. In a crowded QSR landscape, well-executed LTOs create differentiation, especially among Gen Z consumers who thrive on trends and exclusivity. The opportunity is clear: meet your audience where they are, and deliver experiences that resonate,

About Samir Zabaneh

A veteran in the payments industry, Samir Zabaneh was appointed as TouchBistro’s CEO in 2021 to lead the company’s evolution from a point-of-sale solution into a comprehensive restaurant management system of record. Under his leadership, TouchBistro continues to pursue growth by focusing on strategic partnerships and product innovation based on elevated experiences for restaurant operators and diners.

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