Restaurants Add More Breakfast Items

Competition heats up for breakfast, especially as consumer remain finicky about discretionary breakfast dollars.

March 16, 2010

CHICAGO - Restaurants added more than 460 new breakfast items to their menus last year, more than in either of the previous two years, a reflection of tightening competition and consumer budgets, Mintel reports.

According to Mintel, half of consumers said that they spent less on restaurant breakfasts last year compared to 2008. Additionally, 47% percent of respondents said that they do not eat breakfast out during the week, and 45% percent said that they forego dining out for breakfast on weekends.

"We see an increasingly competitive market for restaurant breakfast, even though sales have declined," said Eric Giandelone, director of research at Mintel Foodservice. "Restaurants are refreshing their breakfast menus, but I believe reduced consumer spending, as well as relatively high unemployment, will limit sales growth over the next year."

Breakfast and brunch sales at restaurants dipped 3.4% from 2007 to 2009, according to Mintel, who predicted slow category growth through 2011. From 2009 to 2014, Mintel estimated the breakfast foodservice market to increase 13%.

"To overcome contracting sales, restaurant operators need to be keenly aware of what drives people into restaurants for breakfast," said Giandelone. Mintel said that most people are looking for low prices and convenience on weekdays, while quality and variety are more important to weekend diners.

"Restaurant operators can also perk up sales by realizing that many diners crave breakfast outside traditional breakfast hours," said Giandelone, adding that 36% to 38% of respondents said that they would like to see more "all-day" breakfasts and 32% desired more value meals.

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