Limited Service Breakfast - US

Published by: Mintel International Group Ltd.

Published: Apr. 1, 2008 - 83 Pages

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, Sonic

Figure 19: Television ad, Sonic

Steak ’n Shake

Figure 20: Television ad, Steak ‘n Shake

Usage 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 2008

Figure 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 2008

Figure 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

Abstract

• " 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.

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