News

Why pumpkin spice latte LTOs aren't going away

August 30, 2018

Pumpkin spice lattes are now synonymous with fall and a highly anticipated annual tradition for fans and the foodservice operators offering them. Although these PSL limited-time offers have been around for over a decade, they are still proving to be a winning promotion, according to The NPD  Group Checkout, a receipt harvesting research service that analyzes purchase behavior over time.

The fall LTOs equal more visits and a higher average check size; buyers of PSLs in the 2017 season visited twice as many times and had an average check 10 percent higher than non-buyers. PSL purchasers spend an average of $3 more when PSLs are purchased, but they make three times as many non-PSL purchases as they do PSL.
 
"It's a winning strategy for coffee chains to continue to sell pumpkin spice lattes as a limited time offer. Consumers anticipate their availability and know the drinks are only around for a short period of time and this anticipation creates demand," Annie Roberts, vice president-foodservice at NPD, said in the release. “In addition, pumpkin spice latte limited time offers have a positive impact on visit frequency and check averages as consumers tend to purchase food along with the beverage. It doesn't get much better than that."

So who are these perennial purchasers of the pumpkin spice lattes? 

They tend to have higher incomes — 60 percent have a household income of $75,000 and above —  skew slightly more female (53 percent) than male, and 45 percent of them are 45 years and older. Over 60 percent of pumpkin spice latte aficionodos do not have children under 18 in the household.