Limited Service Breakfast - US - April 2008

Table of Contents

• Scope and Themes
• What you need to know
• Definition
• Consumer survey data sources
• Abbreviations and terms
• Abbreviations
• Terms
• Executive Summary
• Restaurant visits are down, but the LSB market has potential
• Competition heats up...
• The major players
• The quality quotient
• Opportunity exists for healthier offerings
• Innovators offer alternatives, more beverages and extended hours
• Television advertising and discount promotions
• Key consumer highlights
• Market Size and Forecast
  • Figure 1: Total U.S. sales and forecast of limited service breakfast, at current prices, 2002-12*
  • Figure 2: Total U.S. sales and forecast of limited service breakfast, at inflation-adjusted prices, 2002-12
• Competitive Context
• The price/value/quality proposition
  • Figure 3: Core menu prices for breakfast sandwiches, Q4 2007
  • Figure 4: Core beverage menu prices, Q4 2007
  • Figure 5: Top breakfast menu ingredient claims, QSR and fast casual, 2007
• Segment Performance: QSR
• Beyond the "burger joints"
  • Figure 6: Top 15 ingredient claims, QSR breakfast menu, 2007
• Segment Performance: Fast Casual
  • Figure 7: Top 15 ingredient claims, fast casual breakfast menu, 2007
• Segment Performance: Coffeehouses and Donut Shops
• Starbucks sets an example
• The food...
• ...and the beverage
• A lesson to be learned from the donut shop
• Market Drivers
• Meals eaten out decline
• Economic woes grip the nation
• Unemployment
• Delinquent loans
• The high cost of gasoline
  • Figure 8: U.S. regular conventional retail gasoline prices, 2002-07
• Climbing food costs
• Company Analysis: McDonald' s
• Breakfast helping to support growth
• A thriving new beverage platform
• Variety in the food menu
• Addressing health and food quality
  • Figure 9: Top 15 ingredients on the McDonald' s breakfast menu, Q1 2008,
• Company Analysis: Burger King
• Recent menu initiatives
• The BK Value Menu
  • Figure 10: Top 15 ingredients on Burger King' s breakfast menu, Q4 2007
• Minimizing its carbon footprint
• Company Analysis: Einstein Bros.
• Investing in breakfast
• Company Analysis: Dunkin' Donuts
• A varied menu, available all day
• Geographic and retail expansion
• Innovation and Innovators
• Key points
• Beyond the sausage biscuit
• "Wrap" it up
• Chicken? For breakfast?
• Sweet somethings
• Make mine a smoothie
• Boosting up beverages
• Value menus
• Easier ordering
• Extended breakfast hours
• Restaurant Brand Qualities
• Key points
• Restaurants leverage name to capitalize on breakfast game
• Rewards programs
• Creating online communities
• Advertising and Promotion
• Discount promotions
• Television spots
• Chick-fil-A
  • Figure 11: Television ad, Chick-fil-A
• Denny' s
  • Figure 12: Television ad, Denny' s
• Dunkin' Donuts
  • Figure 13: Television ad, Dunkin' Donuts
  • Figure 14: Television ad, Dunkin' Donuts
• McDonald' s
  • Figure 15: Television ad, McDonald' s
  • Figure 16: Television ad, McDonald' s
  • Figure 17: Television ad, McDonald' s
• Sonic
  • Figure 18: Television ad, SonicFigure 19: Television ad, Sonic
• Steak ' n Shake
  • Figure 20: Television ad, Steak ' n ShakeUsage and Mean Use of Restaurants for Breakfast
• Family/steakhouse and fast food/drive-in usage
  • Figure 21: Incidence of visiting family restaurants/steakhouses and/or fast food/drive-in restaurants for breakfast, 2003, 2005, and 2007
  • Figure 22: Family restaurants/steakhouses for breakfast, 2003, 2005, and 2007
  • Figure 23: Fast food/drive-in restaurants for breakfast, 2003, 2005, and 2007
• Fast food, fast casual, coffeehouses, convenience stores, and full service restaurants
  • Figure 24: Eating breakfast out: usage and frequency of use in past month, by gender, age, and household income, March 2008
  • Figure 25: Weekday breakfast dining out frequency, by location, by age, March 2008
  • Figure 26: Weekend breakfast dining out frequency, by location, by age, March 2008
• Breakfast Habits
  • Figure 27: Breakfast habits, by age, March 2008Figure 28: Breakfast habits, by race/ethnicity, March 2008
  • Figure 29: Breakfast habits, by household income, March 2008
• Most Important Breakfast Attributes
• Weekday
  • Figure 30: Most important breakfast attributes, weekday, by gender, March 2008
  • Figure 31: Most important breakfast attributes, weekday, by age, March 2008
• Weekend
  • Figure 32: Most important breakfast attributes, weekend, by gender, March 2008
  • Figure 33: Most important breakfast attributes, weekend, by age, March 2008
• Attitudes towards Breakfast
  • Figure 34: Attitudes towards breakfast, by gender, March 2008
  • Figure 35: Attitudes towards breakfast, by age, March 2008
  • Figure 36: Attitudes towards breakfast, by race/Hispanic origin, March 2008
  • Figure 37: Attitudes towards breakfast, by household income, March 2008
  • Figure 38: Attitudes towards breakfast, by region, March 2008
  • Figure 39: Attitudes towards breakfast, by presence of children, March 2008
• When Breakfast Away From Home is Eaten During the Week
  • Figure 40: When breakfast away from home is eaten during the week, by gender, March 2008
  • Figure 41: When breakfast away from home is eaten during the week, by age, March 2008Figure 42: When breakfast away from home is eaten during the week, by race/ethnicity, March 2008
• Where Breakfast Away From Home is Eaten During the Week
  • Figure 43: Where weekday breakfast is eaten away from home, by gender, March 2008
  • Figure 44: Where weekday breakfast is eaten away from home, by age, March 2008
  • Figure 45: Where weekday breakfast is eaten away from home, by race/Hispanic origin, March 2008
  • Figure 46: Where weekday breakfast is eaten away from home, by household income, March 2008
  • Figure 47: Where weekday breakfast is eaten away from home, by region, March 2008
  • Figure 48: Where weekday breakfast is eaten away from home, by presence of children, March 2008
• Attitudes Towards Eating Weekday Breakfast Away From Home
  • Figure 49: Attitudes towards eating breakfast away from home, by age, March 2008
  • Figure 50: Attitudes towards eating breakfast away from home, by race/ethnicity, March 2008
  • Figure 51: Attitudes towards eating breakfast away from home, by HH income, March 2008
  • Figure 52: Attitudes towards eating breakfast away from home, by region, March 2008
  • Figure 53: Attitudes towards eating breakfast away from home, by presence of children, March 2008
• Switching Breakfast Venues
  • Figure 54: Rationales for switching breakfast allegience, by age, March 2008
  • Figure 55: Rationales for switching breakfast allegience, by race/ethnicity, March 2008
• Appendix: Exclusive Consumer Groups
• Cluster demographics
  • Figure 69: Weekday breakfast eater clusters by gender, March 2008
  • Figure 70: Weekday breakfast eater clusters by age group, March 2008
  • Figure 71: Weekday breakfast eater clusters by income group, March 2008
  • Figure 72: Weekday breakfast eater clusters by race, March 2008
  • Figure 73: Weekday breakfast eater clusters by Hispanic origin, March 2008
  • Figure 74: Weekday breakfast eater clusters by employment status group, March 2008
• Appendix: Trade Associations