Abstract
Mintel' s report on the limited-service restaurant (LSR) breakfast market surveys the competitive landscape and recent activity of leading breakfast vendors by segment. This includes coffee specialists, fast casual operators, and burger and chicken chains, among others.
This report provides the tools necessary for considering changes in operations and marketing in order to thrive in the upcoming years. In order to facilitate this, primary research is focused on the habits and preferences of demographics by age and race/ethnicity. Topics covered include food and beverage ordering habits, with 18-34s and blacks exhibiting a sweet tooth in their choices. Other topics include interest in non-traditional breakfasts, what consumers do while eating breakfast, restaurant and dish loyalty, and the relationship between age, coffee consumption, interest in nutrition, and interest in a variety of menu options.
Breakfast is a fast-growing part of the day for restaurant sales. From 2001-06 sales at limited service restaurants, excluding work and school cafeterias, increased by 47%. Growth is largely driven by perceptions of a lack of disposable time, with the majority of meals taken to go.
Groups that drive the market include men, 18-34s, minority groups, and large households. The relationship between breakfast purchases and time constraints is apparent in these groups. One in five 18-34s state that they only have a few minutes for breakfast. The 18-44s are most likely to eat while they commute to work, and adults with multiple children are clearly strapped for time. As a further indicator of how convenience plays a role in breakfast decision-making, sales of breakfast bars increased by 69% from 2001-06. Other factors driving the industry include innovative breakfast offerings, such as new bread choices and premium breakfasts.
The playing field for LSR breakfasts is about to explode with expansion. Dunkin’ Donuts, Jack in the Box, and Starbucks are aiming for an increased presence, while Wendy’s, Taco Bell, and pizza specialists enter the breakfast arena. There is little question that sales growth will not increase in tempo with the extent of new sites offering breakfast, suggesting that increased branding and niche marketing will be necessary to keep or grow market share.
For the purposes of this report, breakfast is a subjective determination made by survey respondents. It is most commonly understood as the first meal of the day, typically eaten between 4 a.m. and noon. It is possible that some respondents to this survey may have understood breakfast to mean any meal ordered from a breakfast menu or consisting of traditional breakfast foods. In this case, breakfast may have been eaten outside of typical breakfast hours.
Limited-service restaurants are defined as any restaurant in which the patron pays before receiving food. This includes coffee specialists, quick-service restaurants and fast-casual restaurants.
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