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Breakfast Awakening

Breakfast is big news in the restaurant industry.

More consumers are purchasing their morning meals from foodservice—particularly fast-food restaurants, which nearly half of consumers now say they patronize for weekday breakfast on occasion.

More concepts are offering breakfast; they range from Wendy’s huge rollout of morning offerings to hole-in-the-wall burger joints that are taking a chance on breakfast burgers.

More of the restaurants that serve breakfast are extending it far past the morning hours.

Yet consumer data shows that the breakfast market is far from saturated and independent restaurateurs still have plenty of opportunities to grow sales within this category—if they can successfully capitalize on consumer preferences and current menu trends.

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The latest Breakfast Consumer Trend Report from Technomic shows that Americans today place less importance on the price of a foodservice breakfast than they do on convenience and taste. Speed of service and variety of items on the breakfast menu are also key factors.

Breakfast is generally the simplest and least expensive meal, but these consumer findings show that it has not been “commoditized”—operators at all price points have ample opportunities to differentiate their breakfast offerings on factors other than low price.

Now let’s take a look at some key menu trends that allow restaurants to deliver what consumers want most for breakfast.

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American diners, including breakfast consumers, are increasingly seeking out healthful foods on the menu. New trends for morning nutrition point to better-for-you breakfast foods that underscore health and wellness along with appealing, fresh flavors.

Lowfat, nonfat and reduced-fat descriptors mark breakfast offerings as “healthy” or “light.” While these terms do help consumers choose a nutritious breakfast, they could also signal to some diners that the food may not be as flavorful.

But other trendy foods and ingredients carry strong positive connotations of health and wellness without this downside. They include: Oatmeal. Quick-service chains are stirring

the pot, introducing their own versions of oatmeal as an alternative to the more common breakfast sandwiches. Kicking off the trend was McDonald’s, which introduced Fruit & Maple Oatmeal in early 2011. Burger King offers new branded Quaker Oatmeal in original and fruit-topped varieties. Other LSRs that have found success with oatmeal include Calistoga Artisan Sandwiches, Jamba Juice, Starbucks and Chick-fil-A.

Whole- grain and multi-grain items. In addition to whole-grain oatmeal, there have been other introductions of craveable bread-based breakfast foods with whole-grain or multigrain qualities. Black Bear Diner offers 7-Grain Almond Pancakes and a new breakfast side, the 7-Grain Almond Cake; Cracker Barrel introduced a multigrain pancake breakfast and a Six Grain N’ Granola Pancake; and Energy Kitchen debuted whole-grain muffins in blueberry and banana versions.

Greek-style yogurt. Creamier and thicker than other yogurt varieties, Greek yogurt also contains twice as much protein as familiar types of yogurt. Its popularity is exploding as many consumers develop a taste for this alternative; nearly a fifth of consumers now say they prefer Greek-style yogurt over regular yogurt. Greek yogurt is crowding dairy cases in grocery stores, but restaurant operators are also featuring it with fresh fruit, granola and/or honey as a light, nutritious breakfast. New York City’s Rock Center Café lists Greek Yogurt with Mixed Berries, and ‘Wichcraft offers signature granola with Greek yogurt and honey.

Speed, Convenience, Taste and Variety

Key Trend: Healthy—continued

Thinking about the place you purchase breakfast from most often what are the main reasons you

purchase breakfast most often from this location?

Base: 548 (weekday) and 644 (weekend) consumers aged 18+ who purchase breakfast away from home Respondents chose the top three reasons that best describe why they choose this location Source: 2011 Breakfast Consumer Trend Report; Technomic, Inc.

51%

39%

48%

35%

35%

19%

17%

9%

33%

50%

45%

27%

25%

30%

13%

11%

Convenient location onthe way to work/school

Has food that tastes reallygood

It is inexpensive

Has a drive-thru that isconvenient

Speed of their service

Has the widest variety ofbreakfast options to choose

from

Has the best coffee/coffee Iprefer to drink

Has the best choice ofhealthy options

Weekday Weekend

"Technomic’s MenuMonitor database tallies more than 230 new breakfast items over the past two years at limited-service concepts alone."

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Key Trend: Healthy—continued

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Chicken. Chicken has never been thought of as a breakfast protein—until recently. A quarter of chicken consumers say they would very likely order chicken breakfast sandwiches at restaurants if they were available; among those who favor turkey, three in 10 would be interested in breakfast sandwiches or burritos featuring turkey sausage or bacon. Menu data shows an increase in the number of turkey items on breakfast menus, along with the introduction of high-profile chicken items—such as Chick-fil-A’s chicken biscuits, mini biscuits and burritos. In the full-service realm, Leona’s in Chicago offers a Cheezy Chicken Pie for breakfast.

Egg white. Offering the protein of egg without the cholesterol, egg white is an increasingly well accepted alternative to whole eggs. Examples include the Egg White and Sundried Tomato sandwich at Bruegger’s Bagel Bakery and Egg White Florentine breakfast crepes at Freshens.

Consumers—particularly Hispanics and younger consumers— report an increased interest in ethnic breakfast options, and operators are taking note. Honey Dew Donuts, for instance, rolled out a series of International Breakfast Sandwiches, including All American, Portuguese and French sandwiches as well as The Mexican—pulled pork, egg and chipotle spread served on ciabatta bread.

Ethnic restaurants are also extending their menu specialty to the breakfast segment. Breakfast pizzas are now offered by a number of pizza concepts; Happy Joe’s Pizza & Ice Cream Parlor offers omelet pizzas along with cinnamon rolls for breakfast, and Taco Cabana offers hickory-smoked brisket and egg tacos with rice, beans and flour tortillas.

American regional breakfast items are a related trend. In the Southeast, Hardee’s offered a Fried Bologna Biscuit limited-time offer featuring egg, cheese and Oscar Mayer bologna on a signature scratch-made biscuit. Denny’s limited-time Tour of America menu features a number of regionally inspired dishes, with options that range from a Midwestern meat and potatoes sandwich to a Philly cheese steak omelet.

Coffee is a major driver of morning traffic, and consumption is significant. Coffee is playing an increasingly important role in consumers’ breakfast purchasing decision, with a third of coffee drinkers reporting that they are loyal to a coffee brand or restaurant that serves their preferred coffee for breakfast. Indeed, at breakfast, food often takes a backseat to coffee.

Operators have recognized these consumer preferences for branded coffee—and coffee as an integral part of a breakfast meal—with recent rollouts. Subway added Seattle’s Best-brand coffee to accompany six signature breakfast sandwiches introduced over the past year. Atlanta Bread Company introduced Lavazza-brand coffee in all of its units systemwide.

Consumer demand for fair-trade and organic coffee beans is also on the rise, with one out of five consumers saying they prefer fair trade coffee and almost as many saying they look for organic coffee.

Breakfast is one of the key growth opportunities for restaurants of many types. Because menus are generally simple and straightforward, independent operators who hope to succeed must source high-quality food and beverage products, then create recipes that show off these ingredients and grab attention. They must also price these offerings appropriately and promote them in a way guaranteed to draw traffic. For help, operators can turn to their Sysco Marketing Associate, who can advise them not only on ingredient sourcing and menu development but also on pricing, marketing and competitive intelligence. On call to back up the Marketing Associate’s expertise is Sysco’s formidable team of culinary and operational professionals. In addition to the resources available within Sysco, operators can draw on Sysco’s iCare business partners, offering a suite of value-added resources designed specifically to help the independent restaurant operator. For more information, contact your Sysco Marketing Associate.

Key Trend: Coffee's Hot

Sysco Can HelpKey Trend: Ethnic