Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Data sources
- Sales data
- Mintel Menu Insights
- Consumer survey data
- Advertising creative
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- The challenge of a recession
- Limited-service breakfast successfully navigating troubled waters
- Competition increases for the day’s most important meal
- Restaurant breakfast analysis
- Dunkin’ Donuts—a top coffeehouse/donut restaurant brand
- Jack in the Box—a maverick among QSRs
- Panera—a fast casual purveyor that’s converging foodservice concepts
- Brand qualities: Breaking free from the mold
- Menu focus: IHOP
- Restaurant breakfast innovators
- Breakfast menu innovation
- Advertising and promotion activity
- Breakfast usage and attitudes towards restaurant segments
- Restaurant selection factors and spending habits
- What people order and what they wish to see more of
- Race/Hispanic origin and age
Insights and Opportunities
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- Insight into breakfast restaurant trends
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- Figure 1: Trended data for attitudes towards breakfast, adults and teens, 2003-09
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- Figure 2: Trended data for restaurant usage for breakfast, 2003-09
- Let’s explore the opportunities to make it better
- Hey QSRs, you’re forgetting about the little breakfast customers!
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- Figure 3: Trended data for kids’ usage of restaurants for breakfast, 2003-09
- Taking a cue from family restaurants
- More ethnic breakfast options, por favor
- Enter Chipotle
- Fresh and real food equals quality—underscored with value
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- Figure 4: Healthy items consumers would like to see more of on breakfast menus, November 2009
- Eliminate the veto factor
- Good news—there’s money in health
Inspire Insights
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- Inspire trend: Are Eggs the New Bacon?
- Get an egg up on the competition
- Supporting evidence
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- Figure 5: IHOP menu ordering behavior on last visit, by gender, May 2009
- Implications
- Inspire trend: Make My Cereal for Me
- Offer customized granola
- Supporting evidence
- Implications
Market Size and Forecast
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- Key points
- Breakfast daypart is not recession-proof
- The positive…
- … the negative
- Future trends in breakfast foodservice
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- Figure 6: Expenditures for breakfast and brunch purchased at restaurants and carry-out venues, 2004-14
- Figure 7: Expenditures for breakfast and brunch purchased at restaurants and carry-out venues, limited-service and full-service, 2004-09
Competitive Context
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- Key points
- Packaged food makes for convenient and economical at-home breakfast
- Foodservice price wars tilt value/quality proposition
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- Figure 8: Prices for foodservice breakfast sandwiches versus CPG breakfast sandwiches
- Restaurant goers trading down and out
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- Figure 9: Ways consumers have cut down on restaurant spending, November 2008 vs. October 2009
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- Figure 10: Restaurant breakfast spending habits on weekdays and weekends, November 2009
- Restaurant operators see breakfast as an opportunity—creating more competition
- Competitive pressures cause players to respond
- The breakfast value menu
- All-day breakfast
Market Drivers
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- Consumers still watchful of spending out at restaurants
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- Figure 11: Restaurant Performance Index, current situation, and expectations, January 2009-December 2009
- Shattered consumer confidence reins in spending in 2008 and 2009
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- Figure 12: Consumer Sentiment Index, by quarter, 2001-09
- Recession favors convenience-minded segment as driver of sales growth
- The most important meal of the day
- Time factors impact morning breakfast plans
- Long commute times and traffic delays
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- Figure 13: Average commuting times in select major U.S. cities, October 2006
- The answer: making the commute earlier—industry players respond
Restaurant Analysis: Dunkin’ Donuts
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- Overview
- Growth via retail expansion
- Value promotions and innovation leads to increased loyalty
- Healthy breakfast menu choices arrive
- Social media attracts younger consumers
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- Figure 14: Dunkin’ Donuts usage, by selected demographics, April 2008-June 2009
Restaurant Analysis: Jack in the Box
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- Overview
- Positive growth comes to a halt
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- Figure 15: Jack in the Box company-owned same-store sales, percentage increase, 2005-09
- Growth trajectory: positive long term supported by brand expansion
- Brand reinvention
- Reimaging its stores for modern appeal
- New logo goes casual
- Marketing mania: capitalizing on Jack
- QSR menu maverick: all-day breakfast
- Jack in the Box attracts Hispanics and young adults
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- Figure 16: Jack in the Box usage, by selected demographics, April 2008-June 2009
Restaurant Analysis: Panera Bread
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- Overview
- Growth trends remain strong
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- Figure 17: Panera Bread system-wide same-store sales, percentage increase, 2005-08
- Performance in 2009 has remained positive
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- Figure 18: Panera Bread system-wide same-store sales growth trends, 2009
- Reasonable prices over cheap eats
- Growth trajectory: positive
- Ingredients matter
- Creating interest through breakfast innovation
- Come gather and linger
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- Figure 19: Restaurant selection criteria, the experience, November 2009
- The Panera customer skews to affluent, educated, and female
- Opportunity: target Asians and Hispanics
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- Figure 20: Panera usage, by selected demographics, April 2008-June 2009
Brand Qualities
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- Overview
- McDonald’s: balancing value with premium
- Starbucks: affordable quality
- Subway: parlaying its healthful reputation to the morning daypart
- Bojangles’: premium fast food, all day
- Del Taco: ethnic breakfast
Menu Analysis: IHOP
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- Overview
- Menu favorites: pancakes are the clear winner
- Men look for heartier fare
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- Figure 21: IHOP menu ordering behavior on last visit, by gender, May 2009
- Young diners are attracted to the most indulgent breakfasts
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- Figure 22: IHOP menu ordering behavior on last visit, by age, May 2009
Innovation and Innovators
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- Key points
- Fast casual ramps up number of breakfast menu items
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- Figure 23: Top restaurant breakfast menu items, by restaurant segment, Q4 2005-Q4 2009
- Au Bon Pain and Cosi lead fast casual breakfast menu innovation
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- Figure 24: Top fast casual restaurant breakfast menu innovators, Q4 2005-Q4 2009
- What’s new on the menu
- Breakfast sandwich innovation continues
- Breakfast scrambles/bowls are on the rise
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- Figure 25: Top restaurant breakfast menu items, by menu item dish, Q4 2005-Q4 2009
- Traditional menu items on the rise to meet demand for comfort food
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- Figure 26: Top restaurant breakfast menu items, by marketing claim, Q4 2005-Q4 2009
- The healthy breakfast
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- Figure 27: Top restaurant breakfast menu items, by nutritional claim, Q4 2005-Q4 2009
- Navigating the future of menu transparency
Advertising and Promotion
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- Overview
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- Figure 28: Top breakfast restaurant advertisers*, 2007 and 2008
- Promoting quality
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- Figure 29: Wendy’s television ad, Bacon comparison, January 2010
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- Figure 30: Hardee’s television ad, Biscuit making process, August 2009
- Spinning value
- Breakfast for a buck
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- Figure 31: McDonald’s television ad, When you miss breakfast, breakfast misses you, September 2009
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- Figure 32: Burger King’s television ad, The King steals McDonald’s recipe, December 2009
- Promotional deals
- The five dollar family price point
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- Figure 33: IHOP’s television ad, Reappearing pancakes, January 2010
- Utilizing social media
- Dunkin’ Donuts and Starbucks early adopters of social networking
Breakfast Usage
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- Key points
- Usage overview
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- Figure 34: Types of restaurants used for breakfast on weekdays or weekends, November 2009
- Frequency of weekday breakfast usage
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- Figure 35: Weekday breakfast usage, usage frequency, by location, November 2009
- Frequency of weekend breakfast usage
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- Figure 36: Weekend breakfast usage, usage frequency, by location, November 2009
Attitudes Towards Restaurant Segments
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- Key points
- Fast food/coffeehouses win on price; Fast casual/full-service provide health
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- Figure 37: Attitudes towards restaurant segments, November 2009
Restaurant Breakfast Spending Trends
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- Key points
- Attitudes towards restaurant breakfast spending
- Weekday breakfast spending
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- Figure 38: Restaurant breakfast spending habits on weekdays, by gender, November 2009
- Highest income earners spending the same as last year on weekday breakfast
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- Figure 39: Restaurant breakfast weekday spending habits, by household income, November 2009
- Weekend breakfast spending
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- Figure 40: Restaurant breakfast weekend spending habits, by age, November 2009
- Highest income groups still spend money on weekend breakfast
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- Figure 41: Restaurant breakfast weekend spending habits, by household income, November 2009
- Actual spending
- Actual breakfast spending: overview
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- Figure 42: Breakfast spending at restaurants, weekday versus weekend, November 2009
- Actual weekday breakfast spending
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- Figure 43: Breakfast weekday spending at restaurants by gender, November 2009
- Baby Boomers most thrifty in their weekday breakfast spending
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- Figure 44: Breakfast weekday spending at restaurants, by age, November 2009
- Propensity to visit coffeehouses drives spending during weekday breakfast for higher incomes
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- Figure 45: Breakfast weekday spending at restaurants, by household income, November 2009
- Actual weekend breakfast spending
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- Figure 46: Breakfast weekend spending at restaurants by household income, November 2009
Restaurant Selection Factors for Breakfast
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- Key points
- Most important restaurant breakfast selection factors: an overview
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- Figure 47: Restaurant selection criteria, November 2009
- Most important restaurant breakfast selection factors: Weekdays
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- Figure 48: Weekday restaurant selection criteria by category, by gender, November 2009
- Convenience is of utmost importance to highest income households
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- Figure 49: Weekday restaurant selection criteria by category, by household income, November 2009
- Most important restaurant breakfast selection factors: Weekends
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- Figure 50: Weekend restaurant selection criteria by category, by gender, November 2009
- For the lowest income group, price and quality rank most important
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- Figure 51: Weekend restaurant selection criteria by category, by household income, November 2009
Menu Items Ordered For Breakfast
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- Key point
- Portable items during the week; Traditional, indulgent items on weekends
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- Figure 52: Breakfast menu selections, November 2009
Breakfast Menu Items Consumers Want To See More Of
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- Key points
- Breakfast menu items desired
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- Figure 53: Items consumers would like to see more of on breakfast menus, November 2009
- Healthy menu items desired by weekday breakfast eaters
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- Figure 54: Healthful items desired on breakfast menus, by weekday usage and gender, November 2009
- Young 18-24 age group far more interested in healthful breakfast items
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- Figure 55: Healthful items desired on breakfast menus, by weekday usage and age, November 2009
- Healthy menu items desired by weekend breakfast eaters
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- Figure 56: Healthful items desired on breakfast menus, by weekend usage and gender, November 2009
- On the weekends, 18-24 year-olds less interested in items marketed as healthy
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- Figure 57: Healthful items desired on breakfast menus, by weekend usage and age, November 2009
Custom Groups: Race/Hispanic Origin and Age
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- Key points
- Frequency of eating breakfast out by restaurant segment
- Asians under age 35 show high frequency for eating weekday breakfast out
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- Figure 58: Weekday mean use of breakfast restaurant channels, by age and race/Hispanic origin, November 2009
- Asians report higher frequency at fast casual; younger Hispanics choose fast food
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- Figure 59: Weekend mean use of breakfast restaurant channels, by age and race/Hispanic origin, November 2009
- Restaurant breakfast spending habits
- Older blacks spend less on weekday breakfast; younger Hispanics spend more
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- Figure 60: Restaurant breakfast weekday spending habits, by race/Hispanic origin and age, November 2009
- Hispanics under age 35 significantly over-index for increased spending on the weekends
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- Figure 61: Restaurant breakfast weekend spending habits, by race/Hispanic origin and age, November 2009
- Restaurant selection criteria
- Blacks under age 35 seeking the weekday trifecta food quality/variety, low cost, relaxing experience
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- Figure 62: Weekday restaurant selection criteria by category, by race/Hispanic origin and age, November 2009
- Older Asians looking for quality indulgence on the weekends
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- Figure 63: Weekend restaurant selection criteria by category, by race/Hispanic origin and age, November 2009
- Items consumers would like to see more of on the breakfast menu
- Asians over age 35 wish for healthier items for weekday breakfasts
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- Figure 64: Healthful items desired on weekday breakfast menus, by race/Hispanic origin and age, November 2009
- Younger Asians desire traditional eggs and bacon type meals on the weekend
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- Figure 65: Indulgent items desired on weekend breakfast menus, by race/Hispanic origin and age, November 2009
Cluster Analysis
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- Slighters
- Porters
- Opters
- Cluster characteristics
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- Figure 66: Breakfast restaurant clusters, November 2009
- Figure 67: Breakfast restaurant types, by breakfast restaurant clusters, November 2009
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- Figure 68: Breakfast restaurant qualities, by breakfast restaurant clusters, November 2009
- Figure 69: Breakfast spending habits, by breakfast restaurant clusters, November 2009
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- Figure 70: breakfast order prices, by breakfast restaurant clusters, November 2009
- Cluster demographics
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- Figure 71: Breakfast restaurant clusters, by gender, November 2009
- Figure 72: Breakfast restaurant clusters, by age group, November 2009
- Figure 73: Breakfast restaurant clusters, by household income group, November 2009
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- Figure 74: Breakfast restaurant clusters, by race, November 2009
- Figure 75: Breakfast restaurant clusters, by Hispanic origin, November 2009
- Cluster methodology
Appendix: Additional Consumer Tables
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- Spending habits and attitudes
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- Figure 76: Restaurant breakfast spending habits on weekdays, by age, November 2009
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- Figure 77: Breakfast weekend spending at restaurants, by age, November 2009
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- Figure 78: Breakfast weekend spending at restaurants, by gender, November 2009
- Healthy items desired on breakfast menus
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- Figure 79: Healthful items desired on breakfast menus, by weekday usage and household income, November 2009
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- Figure 80: Healthful items desired on breakfast menus, by weekend usage and household income, November 2009
Appendix: Trade Associations
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