Is the hype worth the chaos? Restaurant brands grapple with the risks of scarcity marketing

It’s no-doubt tougher than ever to generate buzz amid a noisy attention economy, but plenty of brands have been doing so with merch giveaways or extreme promotions that plenty of folks are clamoring for.

Indeed, scarcity marketing has exploded in the restaurant industry, particularly in the last five years, and it continues to accelerate as such strategies have proven to be an effective traffic-driving tool.

Consider 7 Brew’s limited-edition 7 Brew Doh squishy giveaway on Sept. 7, for example. Several shops ran out of the toys well before the afternoon ended and TikTok filled with videos depicting blocks-long lines to illustrate the high demand.

Chaotic promotions

My local 7 Brew staffed up in anticipation, as I assume most or all did, but it didn’t alleviate the frustration from the employees trying to keep up with extraordinarily high volumes and customers waiting in extraordinarily long queues.

Starbucks has had several of these chaotic promotions of late, including the Bearista Cup late last year and, more recently, the Snoopy Cup. Speaking of chaos, one woman was caught on video wrestling a Starbucks employee for the $39.95 Snoopy cup. There were also plenty of fights captured on video during the Bearista cup promotion and suddenly an event meant to go viral did so for the wrong reasons.

There are plenty of examples of restaurant brands running out of merch or promotions within minutes. Starbucks’ Stanley Cup from 2024, Chipotle’s car napkin holder, KFC’s Colonel Sanders Funko Pop figure and fried chicken-scented fire logs, Jack in the Box’s Jibbi keychains, Wingstop’s Wing Pass, Applebee’s Date Night Pass, and Arby’s disc golf equipment are just a few that come to mind.

None of those campaigns incited violence, but they tiptoed on the line of benefits and risks, nonetheless.

Benefits and risks

On the plus side, scarcity marketing creates urgency and desire. Consumers have FOMO and immediate action can amplify perceived value (the Bearista mug was fetching about $300 on eBay following the end of its run).

Such promotions also clearly drive traffic, which has been frustratingly hard to come by lately. They can also bolster cultural relevancy for brands and generate a ton of free publicity from unpaid brand ambassadors posting their merch.

Conversely, and as was particularly obvious during the recent Starbucks promotions, they can also frustrate and even endanger employees as well as customers. Further, if every launch becomes a manufactured frenzy, customers could grow weary of more in the future. They could lose their allure.

These rapid sellouts aren’t accidental. They’re created to drive urgency, traffic, relevancy, perceived value, and viral moments that can generate millions in free media coverage. Studies show that scarcity can significantly increase purchase intent and conversions.

Long term effects

But is the juice worth the squeeze if such promotions delve into chaos or damage relationships with both employees and customers? What about loyal customers who weren’t able to score the promotion? Could they feel slighted? Core customers are the last people any brand should alienate.

That said, there are ways to regain favor among those customers. Jack in the Box, for example, just issued a mea culpa, admitting on its social media channels that it “underestimated how badly fans wanted to collect” all of the limited-edition The Simpsons: Treehouse of Horror cups. The cups were launched Sept. 10 as part of the Munchie Meal of Horror promotion, but the chain ran out of cups shortly thereafter.

“Scarcity and exclusivity are no fun, so naturally, Jack is issuing an IOU to make sure all who want a Simpsons x Jack cup get one, plus two free tacos for the trouble,” the company said. “We’ll make sure to get you your cup.”

Fans who purchase a Munchie Meal of Horror at a location that’s out of cups will receive a voucher for the collectible cup they purchased. Depending on the redemption window listed on their voucher, fans can return to the same Jack in the Box between Oct. 6 and Nov. 8 or Nov. 9–22 to claim their cup, and the two free tacos.