BREAKFAST: NUMBERS AND TRENDS

The morning daypart is heating up.

Concepts large and small are paying more attention to breakfast. There are even a few emerging chains—First Watch, Cereality and the Egg & I—dedicated exclusively to this daypart. Why now? The following stats provide convincing reasons.

Breakfast accounted for almost 20 percent of restaurant sales in 2006, according to NPD Crest, which tracks the foodservice industry. The morning meal has grown an average of 3 percent each year over the last three years.

At limited-service restaurants, breakfast sales rose by 47 percent in the last five years, states Packaged Facts in its 2006 Breakfast in the Foodservice Market report.

Takeout breakfasts outnumber sit-down meals by 2:1, NPD discovered. Besides QSRs, the segment that has seen the most breakfast activity is hotels, says Lynn Dornblaser, director of Mintel Custom Solutions. “We see breakfast consumption increasing 10 percent in the future, with on-the-go breakfasts shaping and impacting that growth,” notes Eric Auciello, director of marketing research for Kellogg Specialty Channels. To capture a piece of the breakfast pie, purchase products and develop menu items that fit the trends.

Trends to watch
The $65 billion U.S. foodservice breakfast market is poised to grow, reports Packaged Facts, pointing out these trends:

Competitive QSRs are upgrading ingredients and beverages to attract breakfast business. Breakfast all day is likely to expand.

Bakery cafes are offering more variety and sophistication in both breakfast handhelds and beverages.

Beverages are booming, especially specialty coffees and teas, smoothies and drinkable meals.

Latin-flavor items are gaining ground, a result of increased Hispanic buying power and ageing Boomers looking for more assertive seasonings to wake up their taste buds.

In lodging foodservice, hotels are striving to differentiate the morning daypart by offering cooked-to-order complimentary breakfasts and “picnic” breakfasts packed to go.

Casual and fine dining are menuing creative, healthier options. Whole grains and vegetables are showing up more often.