• » Breakfast traffic has increased 7% in the past year.
• » The QSR breakfast segment has been growing at an amazing rate - up from $10.4 billion in sales in 2001, to $14.3 billion in 2006.
• » The QSR breakfast segment grew 47.3% in sales dollars between 2001 and 2006.
• » breakfast segment grew at a compound annual growth rate of 8.1% - even in constant dollars this means an increase of 29.1%! (Source: Mintel)
• » There was an 8% increase in the number of breakfast sandwiches menued by QSR operators between the first and second half of 2006. (Source: Technomic’s Menu Monitor)
• » Average number of items per breakfast menu (2 year change %): QSR - 15.8 items, + 6.2%. (Source: Datassential’s MenuTrends DIRECT^TM)

Reasons for Upsurge in Consumption of QSR breakfasts

• » Two-earner families - more disposable income, less time
• » Earlier operating hours - some are opening at 5:00 AM
• » Increasing number of units (i.e. increased convenience)
• » Increasing portability of items
• » Diversity of menu items - morning availability of chicken nuggets and hamburgers, and the increasingly mainstream breakfast burrito
• » Younger adults, aged 18-24, show heightened interest in sweet foods and beverages, as well as lunch and dinner foods for breakfast. (Mintel LSR Breakfast Report, 2007)

More About Breakfast

• » Breakfast is now consistently credited with growing same-store sales at all three major fast food chains, and it remains one of the fastest growing meal categories. (Associated Press, 3/18/08)
• » Nearly one third of Americans eat breakfast away from home, and that figure continues to rise. (Technomic, reported in NRN, 1/28/08)
• » "With the consumer no longer eating the traditional three meals, QSR has responded by pushing breakfast." (Lehman Brothers restaurant analyst, Jeffrey Bernstein, as reported by Chain Leader, February 2008)
• » In calendar year 2007, almost 230 million more breakfast sandwiches were served than in 2006, an increase of 7%. (NPD, March 2008)
• » 44% of consumers would like fast food chains to offer breakfast all day (reported by Technomic, March 2008)
• » Burger chains see the greatest share of all-day QSR traffic (40.3% according to a 21-quarter average), but at breakfast their portion grows to 65.8 percent. (Quick-Track survey by Sandelman & Associates, reported by Chain Leader, 8/27/07)

Popularly Menued Items

• » Within the Quick Service segment, breakfast sandwiches (which make up nearly 30% of all QSR breakfast entrees) are driving new breakfast growth.

Sandwich Proliferation

• » The penetration of breakfast sandwiches continues to proliferate with a two year growth of 17.5%.

Menu Trends in Quick Service Restaurants

Percent of quick service operators reporting increase in popularity of these items.

Bold Flavors & Handheld Foods

QSR that’s leading the way. McDonald’s, Burger King, Jack in the Box, Hardee’s, and Dunkin Donuts, for example, have been busy bolstering their breakfast menus with new concepts and bolder flavors.

America’s breakfast revitalization is fueled largely by a growing appetite for: (1) bolder flavors and (2) foods that can be consumed on the go. Operators have been keen to tap into both trends, with crepes, wraps, pizza, quesadillas, burritos, and sandwiches representing the fastest growing breakfast items over the past year.

Ethnic Breakfast Items, particularly those with Latino flavors and formats (at non-Latino themed outlets), are continuing to expand their presence and popularity on the QSR menu.

• » Examples: McDonald’s McSkillet® Burrito with Steak, and Sonic’s SuperSONIC® Breakfast Burrito
• » The appeal of breakfast burritos remains that they are car-friendly and give restaurants the opportunity to offer something with a different, spicier flavor. (Mintel QSR Restaurant Report, 2007)
• » "90% of tweens told researchers that quesadillas are an everyday food." (Research reported by Frozen Food Age, 2007)