Abstract
The Limited Service Breakfast (LSB) market is burgeoning, as a continual stream of entrants hit the market and existing players beef up their current menus, all looking to cash in on the success of the "old timers" such as McDonald' s. As everyone tries to "keep up with the Joneses," what emerges are the formulas for success, and a clear pattern of what is working and where there is work to be done.
This report provides insight and analysis to industry participants and prospective participants including:
· What differentiates the three segments and how they have utilized core competencies to maximize their successes (or not).
· What the key players have done, are currently doing and what they have planned that is setting the bar.
· The "elephants in the living room" (or what obviously needs to be addressed and yet is lagging behind).
· Ways to stand out from the crowd by not offering the "same old, same old."
· Ways to retain and attract customers when the majority is choosing to eat out less in order to save money.
· What differentiates the core consumers and how they need to be treated differently in order to stay active and engaged.
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
