SMART MARKETING
Wake Up and Smell the Coffee

Recent consumer surveys by The NPD Group, Mintel Foodservice, Restaurants & Institutions, and Technomic uncover opportunities for the breakfast market across all segments. According to The NPD Group’s The Future of Foodservice report, morning meal visits have increased and, in fact, have accounted for nearly 60% of the growth in the restaurant industry during the past five years. Even so, the report says that only 10% of breakfasts are eaten in restaurants (approximately 80% in quickservice) and there are more breakfasts skipped than served in restaurants – all of which, NPD concludes, means that breakfast is a significant growth opportunity for the foodservice industry.

More restaurants are entering the breakfast market, especially in the fast casual segment, including Subway, Jack-in-the-Box, Dunkin’ Donuts, Taco Bell, and Burger King. Mintel’s breakfast survey reports that restaurants (predominantly chains) vying for the breakfast business expanded their offerings in 2009, adding 460 new breakfast items (a larger increase than in 2008 or 2007). Just the same, about a third (30.3%) of consumers surveyed in Restaurants & Institutions’ 2010 New American Diner Study said they’re more likely to dine out for breakfast at an independent restaurant. That may be especially true on weekends – according to Technomic’s Breakfast Consumer Trend Report data, 25% of consumers surveyed often treat themselves to a large traditional breakfast on the weekend. More than four out of 10 (43%) said they visit their preferred restaurant for weekend breakfasts because the food tastes really good and, nearly half (46%) said they would like to see fullservice restaurants offer breakfast throughout the day.

Convenience of location is an important factor: 38% of those surveyed by Technomic said that this drives their breakfast decisions. Even more important for weekday breakfast visits is price – 45% of those surveyed cited inexpensive offerings. According to NPD, lower price points make it easier for consumers to use restaurants for morning meals, compared to other meals. Mintel reports that 32% desire more value meals at breakfast. In terms of popular breakfast foods, Technomic data reveals that more than three-quarters (77%) purchase breakfast sandwiches sometimes or often during weekdays, up from 73% in 2007. Breakfast sandwiches fared even better on weekends, with 70% of those surveyed purchasing them compared to 61% two years ago. NPD’s survey also reports that breakfast sandwiches are one of the best-performing menu options and are projected to enjoy relatively strong demand growth in the years ahead. Consumption of specialty coffees has also increased, contributing 30% to morning meal growth over the last five years.

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