With introductions of an A.M. Crunchwrap, Waffle Taco and Cinnabon Delights, the Taco Bell chain is going no-holds-barred into breakfast business, while McDonald’s U.S. business continues to post sales declines─1.7% down in its most recent quarter along with a 1.7% operating profit dip. Breakfast is about 25% of the McDonald’s business. Let’s take a look at some highly-relevant strategies foodservice operators can adopt in the limited-service breakfast game: Breakfast winning strategies • Bread redux and baked goods resiliency • Coffee reigns supreme, but don’t lose sight of juice • International flavors appeal to dynamics of food excitement • Portability and speed of service can make or break Bread redux and baked goods resiliency Breads are seeing a return closer to the center plate. Breads on menus have been increasing. “Chefs across all segments are exploring a variety of artisan breads—many are even baking them in-house—and using them to elevate sandwiches and entrées, and even serving them as a standalone course,” The Culinary Trend Tracking Series helps customers: Identify future opportunities in menu offerings and packaged foods & beverages Leverage the long-term drivers that are truly propelling food industry trends Track trends in fine dining restaurant, foodservice, retail prepared foods, and packaged foods Match emerging trends to your organization’s ongoing menu and product development Packaged Facts, a division of MarketResearch.com, publishes market intelligence on a wide range of consumer market topics, including consumer demographics and shopper insights, consumer financial products and services, consumer goods and retailing, consumer packaged goods, and pet products and services. Eighty-three percent of the Fortune 500 companies have purchased research from MarketResearch.com. Packaged Facts also offers a full range of custom research services. To learn more, visit: http://www.packagedfacts.com.

1. Strategies for winning in the breakfast
daypart for limited-service foodservice
operators
CuTTS

2. This “Trends in Motion: Winning in
Limited-Service Breakfast” slideshare
is co-presented by CuTTS (Culinary
Trend Tracking Series) and PF
(Packaged Facts), a division of
MarketResearch.com
Winning in Limited-Service
Breakfast
2
© MarketResearch.com

3. First, note additional resources here:
•Winning in LSR Breakfast Blog
http://home.packagedfacts.com/article/2014-04/limited-service-foodservice-
operators-take-winning-strategies-their-breakfast-game
•Foodservice Breakfast Trends
Research Report
http://www.packagedfacts.com/redirect.asp?progid=86032&productid=7857050
•CuTTS South American Flavors
http://www.packagedfacts.com/Culinary-Trend-Tracking-8070416/
Ready? Let’s start!3
©
MarketResearch.com

4. Winning with
breakfast
Bread, Baked
Goods
Innovation
Coffee
Reigns
Supreme
International
Flavors
Appeal
Portability
and Speed of
Service
© MarketResearch.com
4

5. Trends in Motion: Winning
in Limited-Service Breakfast
 39% of breakfast
foodservice menus
are baked goods
 Sandwiches are
differentiated by
bread carrier
 Bread innovation in
media demonstrates
pretzel and brioche
power
 Variety of baked
goods is key
5
© MarketResearch.com
Make
quality
consistent
Upscale
breads
Diversify
baked
goods
Bread
makes
the
sandwich
Bread redux and baked goods
resiliency

6. Trends in Motion:
Winning in Limited-
Service Breakfast
 64% of breakfast
foodservice customers
get coffee with
breakfast
 Consistent quality and
additional coffee
varieties can take you
far
 C-stores savvy with
new coffee
introductions
 12% of breakfast menu
belongs to juice
6
© MarketResearch.com
Lighter and
flavored
coffee
varieties
Taste and time of
day most influential
for away-from home
coffee
Juice is the next
battleground
Watch
desire for
health &
wellness
Coffee reigns supreme, watch
juice

7. Trends in Motion:
Winning in Limited-
Service Breakfast
 Breakfast burritos
grow, room for
empanadas
 Is the breakfast torta,
bolon or torreja not far
behind?
 More than half of
consumers seek out
bold flavors in
foodservice and
grocery buying
7
© MarketResearch.com
Breakfast
burritos as
launching
point
20% of
consumers
desire
foreign
foods
Think
global
within
portable
What’s the
“next”
morning
burrito?
International flavors appeal

8. Trends in Motion:
Winning in Limited-
Service Breakfast
DON’T
 ignore global flavors in
demand
 ignore rise of interest in
lean diets & cuisine
 discount Hispanic
consumers, who
currently make up
nearly 1 in 5 Americans
(U.S. Census)
 neglect investment in
portable, global food
options
8
© MarketResearch.com
DO
 introduce foods with
global flair
 Mexico: burritos,
torta sandwiches
 South America:
bolon, pan roseta,
torreja, quinoa
 Pan-Latin:
empanada
 Mediterranean Rim:
flatbreads, including
pita, hummus snack
packs

9. Trends in Motion:
Winning in Limited-
Service Breakfast
 Next to low-cost and
healthy, convenience
is major consumer
driver for LSR
breakfast
 Pre-wrapped options
viable for
convenience, not just
in C-stores
 No drip, no foul: Keep
sauces readily
available in to-go
packaging & packets
 Architect as friend:
customer flow
optimized
9
© MarketResearch.com
26% of breakfast
users tell PF they
would be
motivated by
more convenient
locations
Portability is Key

10. Success in breakfast is built in granular
fashion

11. Trends in Motion: Winning
in Limited-Service
Breakfast
Don’t forget to read
our breakfast blog
post for additional
insights:
http://home.packagedfacts.com/article/201
4-04/limited-service-foodservice-
operators-take-winning-strategies-
their-breakfast-game
11
© MarketResearch.com

12. Packaged Facts, a division of MarketResearch.com,
publishes market intelligence on a wide range of consumer
market topics, including consumer demographics and
shopper insights, consumer financial products and services,
consumer goods and retailing, consumer packaged goods,
and pet products and services.
Eighty-three percent of the Fortune 500 companies have
purchased research from MarketResearch.com. Packaged
Facts also offers a full range of custom research services. To
learn more, visit: http://www.packagedfacts.com.
PF (Packaged Facts)12
© MarketResearch.com

13. Culinary Trend Tracking Series (CuTTS) is the essential source for
tracking culinary trends and opportunities in the restaurant, foodservice,
retail prepared foods, and packaged food and beverage sectors. This new
bi-monthly report series supports the menu and food manufacturing
innovation of executives, strategists, chefs, and food research
professionals in R&D/product development, market and consumer
insights, brand management, and trade and consumer marketing.
The Culinary Trend Tracking Series helps customers:
•Identify future opportunities in menu offerings and packaged foods &
beverages
•Leverage the long-term drivers that are truly propelling food industry
trends
•Track trends in fine dining restaurants, foodservice, retail prepared foods,
and packaged foods
•Match emerging trends to your organization’s ongoing menu and product
development
CuTTS13
© MarketResearch.com