According to Mintel, “Breakfast at limited service restaurants has been well-positioned to capture sales of consumers trading down from more expensive breakfast experiences at full-service restaurants. Despite solid value price points by several full-service operators, the perception that full-service dining is more expensive still exists. As such, positive growth by limited-service players serves to offset struggling sales thru full-service restaurants.”

Additional insights on limited service restaurants from the February 2012 Mintel report include:*

• Usage of limited-service restaurants is greater (54%) than usage of full-service restaurants (42%) for breakfast
• Among limited-service restaurants, fast food is used by 47% of respondents for breakfast, followed by coffeehouse/donut shops (32%) and fast casual restaurants (23%)
• Fast food users skew higher in looking for value meals, dollar menus and snack-size breakfast items
• Analysis of the limited-service breakfast menu reveals that the number of breakfast menu items by QSRs increased 17.3% from Q3 2009-Q3 2011, while menu items available on fast casual menus increased 28.4%

*Based upon a survey of internet users aged 18+ conducted in November 2011

Source: Breakfast Restaurant Trends, Mintel Group Ltd., February 2012

The following trends were published in a report titled Breakfast Restaurant Trends from the Mintel Group Ltd. in February 2012. Consumer data is based upon a survey of internet users aged 18+ conducted in November of 2011. As referenced in this report: “Breakfast has been a notable trend in the restaurant industry as operators have either added breakfast platforms or revitalized breakfast offerings to counter declines in traffic and tepid consumer spending in the recession’s wake.”  Some additional insights from this report include:

Breakfast Marketing and Pricing

• In 2011, Mintel estimates 2.1% growth in breakfast restaurant sales and a market value of more than $25 billion
• The average price of breakfast menu items increased 4.2% from Q3 2009-Q3 2011. With an average menu price of $5.24, breakfast remains a good restaurant value
• Fresh is the leading ingredient marketing claim used on breakfast menus, representing 11.8% of total menu items in Q3 2011
• Menu items making the fresh claim have seen steady price increases up 10.6% from Q3 2009-Q3 2011
• Breakfast is ordered an average of 4.8 times per month by breakfast restaurant users, which demonstrates significant upward growth potential
• Men and respondents aged 18-34 emerge as high-frequency users of breakfast from a restaurant
• Nine out of ten restaurant-goers order breakfast on weekdays, outpacing usage of breakfast on weekends
• Quality attributes rank as the most important restaurant selection factor for breakfast
  • Pricing of breakfast restaurant items rank high on the list of consumer interests, with 70% interested in value meals and 65% in dollar menu items
  • Marketing breakfast items as healthy will get the attention of 60% of breakfast restaurant users – especially women and those aged 35-44

Breakfast Menu

• The number of breakfast menu items available increased 24.2% from Q3 2009 – Q3 2011
• Breakfast sandwiches are the most common breakfast menu item, representing 14.8% of all breakfast menu items in Q3 2011
• Oatmeal has shown the most growth on the breakfast menu from Q3 2009-Q3 2011
• Coffee/coffee drinks are the most popular menu item ordered for breakfast, with 50% of consumer ordering overall
• Hand-held, portable items (i.e. breakfast sandwiches or bagels) are more likely to be ordered on weekdays reflecting the propensity for dashboard dining
• Some 73% of breakfast restaurant users show interest in savory items compared to 50% who are interested in sweet breakfast items

Source: Breakfast Restaurant Trends, Mintel Group Ltd., February 2012