The Rise of “Time Sale” Marketing in Food and Beverage

Franchise food and beverage (F&B) companies are increasingly leveraging “time sale” marketing strategies, particularly focusing on the post-lunch lull around 2 PM. This approach aims to revitalize customer traffic during traditionally slower periods, mirroring the restaurant industry’s practice of implementing afternoon “brake times” to manage labor costs while together seeking to boost profitability.

Starbucks Leads the Charge with Decaf Promotions

Starbucks recently implemented a 1+1 promotion on decaffeinated coffee beverages between 2 PM and 8 PM on select dates. This strategic move yielded notable results. According to company data, sales of the five featured decaffeinated drinks nearly doubled compared to the previous week during the promotional hours. This initiative builds upon a broader trend: Starbucks’ decaf sales surged 55% year-over-year in 2024, with decaffeinated options now accounting for a notable portion of Americano orders. In the first quarter of 2025, decaffeinated beverage sales increased by 31% compared to the same period last year.

Starbucks is actively analyzing sales data to refine its marketing strategies. Recognizing the decline in customer visits after the lunch rush, the company is targeting the afternoon period with promotions tailored to consumers seeking to reduce their caffeine intake. The “Buddy Pass” subscription program, launched after a accomplished pilot, further exemplifies this approach, offering discounts on beverages and food after 2 PM daily.

Burger King Joins the Fray with Afternoon discounts

Following a similar strategy, Bathton, the parent company of Burger King, offered a significant discount on menu items before 2 PM on specific dates. This promotion directly targeted the post-lunch dip in sales, aiming to incentivize customers during a typically slow period.

The Psychology and Economics of Time-Based Pricing

The concept of varying prices based on time is a well-established marketing technique in the retail sector.While time sales can effectively reduce inventory and boost overall sales, experts caution against excessive discounting, which could potentially devalue the brand image. As one industry insider notes:

This can be a ‘double-edged sword,’ which is used to highlight the scarcity by conducting time sales during a limited time rather than a regular discount.

Academics suggest that the perceived scarcity created by limited-time offers can be a powerful motivator for consumers. However, brands must carefully balance the desire for increased sales with the need to maintain a premium brand perception.

Potential Pitfalls and Strategic Considerations

While time-based promotions offer a compelling way to drive traffic and increase sales during off-peak hours, F&B companies must carefully consider the potential downsides. Over-reliance on discounts can erode brand value and create a perception of lower quality. Furthermore, poorly executed promotions can lead to customer dissatisfaction and negative word-of-mouth. The key lies in striking a balance between offering attractive incentives and maintaining a consistent brand image.