BREAKFAST IS BACK
Breakfast saw a sharp decline in 2020, but in 2023, breakfast sales have surpassed pre-pandemic sales.1 Compared to 2019, more operators now offer breakfast and brunch, and consumers purchase breakfast away from home more often.1
Limited-service restaurants (LSRs) and full-service restaurants (FSRs) are pulling in the most in breakfast sales. But lodging, business and industry (B&I) and K-12 saw the largest growth from 2021 to 2023. Looking ahead, breakfast is poised to remain on a growth trajectory, with a compound annual growth rate of 5.8% from 2023 to 2026.1
Commercial Restaurant Competition
As breakfast booms in FSR & LSR channels, quick-service restaurants (QSRs) are quickly returning to breakfast wars. Wendy’s, Jack in the Box, and Taco Bell are all investing substantial marketing dollars in promoting their breakfast offerings.2
Non-Commercial Opportunity
As breakfast continues to grow, non-commercial operators in C&U, healthcare and lodging can rely on commercial restaurant partners to drive appeal. IHOP is offering flexible development options designed for throughput in environments (e.g. student unions), bringing IHOP’s classic charm into a convenient, modern format.3
BREAKFAST IS AFFORDABLE
Consumers are looking to curb spending during this inflationary period while still treating themselves to eating away from home. Breakfast is the perfect point of entry as it’s less spendy but still satisfying.4 The inflation-induced trade down has resulted in an AM dash throughout the week.
- Weekday satisfaction: In 2024, a breakfast boom during the work week has guests treating themselves to foodservice in the morning rather than lunch as a satisfying yet more affordable restaurant occasion.5
- Brunch is the new dinner: On weekends, brunch is being treated as the new dinner thanks to its equally appealing social aspects, adult beverage selections, and lower checks.5
- Breakfast in chains: Chains offering only breakfast, brunch and lunch are on the rise. They provide operators and staff with reasonable work hours and menu items with moderate-to-low food costs, while customers enjoy less expensive meals in casual settings.6
BREAKFAST IS CONVENIENT
Convenience is a major driver of breakfast away from home. Consequently, portable and snackable breakfast formats are on the rise.
- 58% of consumers eat breakfast out because it’s convenient.7
- C-stores are boosting breakfast sales with breakfast handhelds like pizzas, tacos and quesadillas.8
- Sandwiches, burritos, and smoothie bowls are the top LSR breakfast dishes.5
Convenience also plays an important role in breakfast snacking. Companies like Hostess® are dedicating R&D to creating craveable, portable, grab-and-go morning snacks. Their recent launch of Hostess® Donettes® Old Fashioned Mini Donuts and Hostess® Chocolate Drizzle Baby Bundts are extensions of two of the brand’s most loved product lines and bring joy to the start of the day.9
BREAKFAST IS SOLVED
Regardless of what kind of foodservice operation you run, finding your point of difference on the breakfast menu can result in meaningful dividends. The perfect balance involves staying true to your concept while offering a small twist on familiar breakfast foods and drinks.
•Innovate—LTOs keep breakfast fresh for regulars, and plussing-up bulk products (like Jif® and Smucker’s® spreads) with an ingredient or two can net craveable, approachable, ownable flavors.
•Highlight Value—Prices are rising, but operations that highlight value on the menu are winning fans.1
•Streamline—Limiting offerings by designing breakfast around versatile bulk ingredients can maximize savings and limit labor.
•Bundle—Promote food and beverage combos that make guests feel like they are getting a deal (and offer affordable and trusted coffee brands like Folgers® to maintain margins and drive value).
•Wrap It Up—Invest in portable platforms with travel-friendly breakfast flavors that satisfy the need for convenience.
•Snack It Up—Offering craveable breakfast snacks from appealing brands like Uncrustables® and Hostess bring serious appeal to non-commercial breakfast snacking.
Right now is the perfect time to bring in more thrifty value-seekers with satisfying breakfast offerings. Find inspiration featuring some of their favorite brands here.
