1. Get more info on this report!
Breakfast Trends in the U.S. Foodservice Market
August 1, 2010
The recession is reshaping how consumers interact with the restaurant industry, and the
breakfast daypart is no exception: value pricing remains at the forefront of menu
strategies, as growing guest checks often takes a backseat to generating guest traffic.
However, unlike the lunch and dinner dayparts, breakfast benefits from long-term
untapped guest traffic potential, and it can generate healthy margins, factors that are
drawing major new players into the market.
Packaged Facts‟ Breakfast Trends in the U.S. Foodservice Market estimates that
breakfast daypart restaurant sales reached $37.2 billion in 2009, and forecasts that they
will reach $37.0 billion in 2010 and $37.7 billion in 2011. While these figures may
appear tepid at first glance, when viewed against the backdrop of lower overall
restaurant sales, the breakfast daypart has fared relatively well, taking share from lunch
and dinner. In the final analysis, we believe that near-term challenges will give way to
long-term opportunity.
Breakfast Trends in the U.S. Foodservice Market provides unique insights into
consumers‟ evolving relationship with the breakfast daypart, helping restaurant
operators position their brands—and menus—for consumers today and tomorrow.
Highlights of the study include:
Directional consumer behavioral and attitude analysis via Packaged Facts‟
proprietary Consumer Restaurant Outlook Tracker, which assesses restaurant
breakfast users current and planned restaurant-related behavior;
Proprietary analysis of average meal spend by restaurant type and by daypart,
with a focus on the breakfast daypart, to help target consumers who can bring in
higher guest check averages;
“Share of Stomach” sales analysis that trends limited-service and full-service
sales by daypart, and provides in-depth spending patterns for the breakfast
daypart by region, income, and race/ethnicity (analysis includes comparisons to
food-at-home spending);
Meal “pricing threshold” analysis: $3, $5, and $10 consumer-imposed breakfast
spend limits;
2. Restaurant and menu selection analysis, driven by our proprietary consumer
survey results;
A custom “demographic drilldown” on frequent coffee drinkers;
Industry-leading restaurant brand analyses of top restaurant breakfast players,
including 2010-2011 breakfast strategy and demographic analysis according to
“core customers,” low- and high-frequency guest traffic, and “food lifestyle”
segmentation;
Thorough, investment-grade macroeconomic analysis that helps industry
participants understand current consumer restaurant spending behavior.
Themes and topics covered in the report also include:
Breakfast daypart market size and forecast, including limited-service and full-
service restaurant segments;
Value, convenience, menu item, and health innovations, strategies and trends
Restaurant usage by daypart, according to restaurant segment (coffeehouse, fast
food restaurant, smoothie shop, family restaurant, casual restaurant, fine dining,
convenience store, and grocery store)
Breakfast value menus and meal bundles
The importance of who accompanies the breakfast restaurant user to dine in and
pick up a meal
Importance of health-related factors to the purchase decision, including food
advertised as all-natural and healthy and calorie/nutrition information.
Data Methodology
Our methodology rests on a balance of data-centric expertise and holistic
understanding, maximizing accuracy and depth of analysis. Report data is derived from
thorough analysis of a host of sources, including the following:
Proprietary company interviews
Proprietary consumer surveys
The Experian Simmons National Consumer Study
The U.S. Census Bureau
The Bureau of Labor Statistics Consumer Expenditure Survey
The U.S. Department of Agriculture
The U.S. Securities and Exchange Commission
The Bureau of Labor Statistics Retail Trade Survey
Company presentations
Trade associations and trade magazines
Academic journals
Industry conferences
Restaurant menus
3. Additional Information
Market Insights: A Selection From The Report
Share of Stomach: Sales Analysis
Packaged Facts estimates that breakfast daypart restaurant sales reached $37.2 billion
in 2009, and forecasts that they will reach $37.0 billion in 2010 and $37.7 billion in 2011.
While these figures may appear tepid at first glance, when viewed against the backdrop
of lower overall restaurant sales, the breakfast daypart has fared relatively well, taking
share from the lunch and (especially) dinner dayparts.
Growth in the breakfast daypart faces near-term challenges:
1. higher unemployment means fewer people hooked into restaurant breakfast via
work-driven routine, as well as reduced paychecks to support a desire to have
breakfast outside of the home;
2. a more cost-conscious consumer who may more practically weigh the cost of an
inexpensive breakfast at home against the lifestyle benefits of eating it outside
the home (convenience, menu item interest, and indulgence to name a few); and
3. an industry environment in which players are chasing foot traffic at the expense
of guest check. But with only 34% of restaurant goers eating restaurant breakfast
in the past month (according to our proprietary survey) and an even smaller
percentage of the general population, the industry can woo the more than 150
million adult consumers who do not use restaurant breakfast.
U.S. Bureau of Labor Statistics Consumer Expenditures Survey data suggests that the
bulk of food expenditure spending growth during 2005-08 has come from spending on
food at home, with food-away-from home expenditures as a percentage of food
expenditures actually dropping 2.5 share points.
However, share of breakfast and brunch expenditures rose from 9.5% of restaurant-
related expenditures per “consumer unit” in 2005 to 10.2% in 2008, with dollars spent
on breakfast and brunch per “consumer unit” up 11.2% during the three-year period.
Frequent Coffee Drinkers: Custom Usage, Attitudes and Behavior Drilldrown
Frequent coffee uptake is closely associated with age, as it often becomes a “rite
of passage,” used by many adults as they wind through their careers to stay on
task. Usage often becomes habitual, and, as people age, it continues to be used
while other (less healthy or more calorie-laden) beverages go by the wayside.
Coffee and breakfast go together—at least from the perspective of frequent
coffee drinkers. Whereas 49% of adult respondents to Packaged Facts‟ June
4. 2010 proprietary survey agree with the statement “breakfast is the most
important meal of the day,” 55% of frequent coffee drinkers think so.
This supports current restaurant operator strategies to enhance their coffee
platforms and leverage coffee/food bundles. Coffee drinkers, fixated to varying
degrees on getting their coffee to start the day, can be led into the restaurant,
where they can then be sold an entrée, breakfast sandwich or side to go with it.
Some 65% of respondents who have gotten breakfast from a restaurant in the
past month have gotten it from a fast food restaurant, but among those who are
frequent coffee drinkers, usage stays about the same.
Drinking a lot of coffee also correlates with higher average breakfast meal spend:
$6.87 versus $6.51, or 5.6% higher.
In The News
Value Pricing Breakfast Menus Helps Steady Daytime Restaurant Spending,
Bodes Well for Future Growth
New York, August 3, 2010 — The most important meal of the day continues to face
short-term challenges related to the recession, but market research publisher Packaged
Facts‟ Breakfast Trends in the U.S. Foodservice Market predicts consumer spending
on breakfast at restaurants will rebound from an anticipated downturn in 2010 to
approach $38 billion in 2011, as current value menu pricing strategies influence future
spending habits.
“Fast food and QSR (quick-service restaurant) operators are playing the „price equals
value‟ card for everything it‟s worth. By pushing the envelope with $1 deals, they risk
enabling a pool of „extreme affordability‟ customers. But the upshot for breakfast is that
it remains a relatively untapped daypart, so that traffic gained today may translate into
additional revenue tomorrow,” says Don Montuori, publisher of Packaged Facts. “We
believe that decisions by the likes of Denny‟s and Bob Evans to place everyday value
for quality food at the forefront of their branding initiatives make a great deal of sense.
Value pricing meets the reality of today‟s and tomorrow‟s lower-to-middle and middle-
income consumers who frequent family restaurants. For breakfast, they are spinning
full-service value menus and value in portion size.”
Packaged Facts expects McDonald‟s foray into $1 breakfast menus to create pressure
among other fast food/QSR players to match its lead—an industry-wide trend previously
glimpsed with the proliferation of non-breakfast $1 value menus. Burger King, Wendy‟s
and Subway have already made major breakfast moves. The bottom line is that low
cost resonates with restaurant breakfast users, with 31% of respondents to Packaged
Facts‟ proprietary survey claiming they have been influenced by a maximum $3 price
when selecting a restaurant for breakfast, versus 16% who placed a limit at $10.
5. Convenience influences consumer breakfast decisions, with convenience to work or
errands, routine, and the need to get somewhere else quickly factoring in. Also relevant
are breakfast menu features, such as getting a favorite menu item, wide variety, and
healthy menu items. And, because more than half of U.S. adults drink coffee,
restaurants have created value bundles that offer coffee with breakfast food to increase
foot traffic.
Even though restaurant sales fell during the recession and initial recovery, breakfast
has fared relatively well and has taken market share away from both the lunch and
dinner dayparts. Packaged Facts found that only 34% of restaurant goers had eaten
breakfast at a restaurant in the past month and an even smaller percentage of the
general population said the same, which means the industry has an opportunity to woo
the more than 150 million adult consumers who do not use restaurant breakfast.
Breakfast Trends in the U.S. Foodservice Market provides unique insights into
consumers‟ evolving relationship with the breakfast daypart, helping restaurant
operators position their brands and menus for consumers in 2010 and beyond.
Highlights of the study include directional consumer behavioral and attitude analysis via
Packaged Facts‟ proprietary Consumer Restaurant Outlook Tracker; proprietary
analysis of average meal spend by restaurant type and by daypart, with a focus on the
breakfast daypart, to help target consumers who can bring in higher guest check
averages; restaurant and menu selection analysis, driven by Packaged Facts‟
proprietary consumer survey results; and much more.
About Packaged Facts - Packaged Facts, a division of MarketResearch.com,
publishes market intelligence on a wide range of consumer market topics, including
consumer goods and retailing, foods and beverages, demographics, pet products and
services, and financial products. Packaged Facts also offers a full range of custom
research services.
Table of Contents
Chapter 1: Executive Summary
Scope and Methodology
Scope
Methodology
Macroeconomic Analysis
Fast Facts
Restaurant Usage & Outlook Tracker
Fast Facts
Share of Stomach: Sales Analysis
Fast Facts
Breakfast Trends, Innovations & Strategies
Fast Facts
6. Breakfast Restaurant Selection Analysis
Fast Facts
Breakfast Menu Selection Analysis
Frequent Coffee Drinkers: Custom Usage, Attitudes and Behavior Drilldrown
Breakfast on the Menu: Restaurant Brand Analysis
McDonald‟s
Breakfast strategy: sales growth = guest count growth
Breakfast menu mix
Other snippets
Burger King
Refocusing on breakfast
Other snippets
Wendy‟s
Wendy‟s reenters breakfast wars with premium QSR differentiation
Starbucks
Recession strategy pays dividends
Brand extensions: VIA and Seattle‟s Best
On the food and coffee front
Bob Evans
On the menu: off-premises growth, remodeling, and quickening service
Menu trends
Breakfast in a big way
Cracker Barrel
Menu item innovation
Other snippets
Denny‟s
Recession challenges: region, lower-middle income demographic and late-night
2009-2010 breakfast menu strategy
$2 $4 $6 $8, who do we appreciate?
Other moves
Chapter 2: Macroeconomic Analysis
Restaurant sales show life, but we believe positive news is transitory
Restaurant industry rebound still not in cards
February, March and April 2010 food services & drinking places sales
sequentially improve
May advance sales point to grocery growth
Graph 2-1: Non-Adjusted Monthly Sales, 12-Month % Change, Grocery Stores &
Food Services and Drinking Places, 2009-2010
Packaged Facts‟ Consumer Restaurant Tracker: Gloomy Near-Term Outlook
In-home breakfast and dinner trend remains significant
Graph 2-2: Consumer Restaurant Tracker: Current Behavior: A Top Line View
Looking ahead: Saving & grocery spending trumps limited service and full-
service restaurant spend
Graph 2-3: Consumer Restaurant Tracker: Next 3 Months: A Top Line View
National Restaurant Association index contracts after transitory spike
Graph 2-4: Restaurant Performance Index, 2006-2010
7. Macroeconomic factors affecting restaurant sales
Consumer confidence still in a trough
Present Situation Index decreases as perceptions of business conditions, job
prospects darken
Expectations Index dips as job prospect optimism dims
Unemployment picture stabilizes
Some perspective
Graph 2-5: Unemployment Rate and Consumer Confidence: 2007-2010
Unemployment rate not one-size-fits-all
Disparity in unemployment rates by education level
Young adults, minorities and men also find harder going
Graph 2-6: Unemployment Rate, Selected Demographics, 2007-2010
Graph 2-7: Unemployment Rate, by Race/Ethnicity, 2007-2010
How can increasing personal savings and reducing the debt burden be bad?
Transitory Spring 2010 restaurant benefit driven by reduced savings
Chipping away at the debt burden
Graph 2-8: Consumer Debt Burden, 2000-2010
Graph 2-9: Savings Rate & Debt Service Ratio & Financial Obligations Ratio,
2007-2010
Unemployment and GPD forecast
Slow employment rebound to coincide with slow rebound in consumer spending
Graph 2-10: Unemployment and GDP Forecast, 2010-2012
Stock & housing declines deflate household wealth; rebound to record 2006
levels a long way off
Q1 2009 to Q1 2010 sees uptick in household wealth, but still $10 trillion off 2006
high
Graph 2-11: Household Net Worth, 2005-2010
Case-Shiller and FOMC housing pessimism
Q2 2010 summary equities analysis
Graph 2-12: Wealth Effect: Wilshire 5000 and Case-Shiller Index: 2007-2010
Food at home maintains pricing edge
Graph 2-13: CPI: Food at Home vs. Food Away from Home, 2005-2010
Farm value comes back down to earth
Graph 2-14: Market Basket of Farm Foods, Annual % Change, 2006-2010
Food inflation forecast revised downward
Food CPI returns to positive annual growth rate
Proteins on the upswing
Dairy prices normalize
Fruits and vegetables
Other
Chapter 3: Restaurant Usage & Outlook Tracker
Note on reading charts
Packaged Facts‟ Consumer Restaurant Tracker: at-home food spend trumps out-
of-home spend
February 2010 trend continues in June 2010
Graph 3-1: Consumer Restaurant Tracker: Current Behavior: A Top Line View
8. Looking ahead: Consumers more likely to save & spend on groceries than spend
at restaurants
Graph 3-2: Consumer Restaurant Tracker: Next 3 Months: A Top Line View
Eating breakfast at home had significant traction
Students, 18-24s and parents more likely to eat breakfast at home
Graph 3-3: Consumer Restaurant Tracker: Present Behavior: Eating Breakfast at
Home
Restaurant breakfast users as likely as restaurant goers in general to eat
breakfast at home
Graph 3-4: Consumer Restaurant Tracker: Present Behavior: Eating Breakfast at
Home, Restaurant Breakfast Users
Higher-income versus lower-income fast food, family restaurant and coffeehouse
breakfast users
Graph 3-5: Consumer Restaurant Tracker: Present Behavior: Eating Breakfast at
Home, Restaurant Breakfast Users, HH Income Splits
Planned spending on fast food appears grim
Graph 3-6: Consumer Restaurant Tracker: Future Behavior: Fast Food
Restaurant Spending
Intended full-service spend lacks promise
Graph 3-7: Consumer Restaurant Tracker: Future Behavior: Full-Service
Restaurant Spending
Intention to save money remains high
Graph 3-8: Consumer Restaurant Tracker: Future Behavior: Saving Money
Restaurant breakfast users more likely to plan higher fast food and full-service
spending
Graph 3-9: Consumer Restaurant Tracker: Future Behavior: Restaurant
Spending, by Restaurant Breakfast Type
Restaurant usage and usage frequency
Overview
Graph 3-10: Mean Restaurant Usage in Last Month, by Restaurant Type, 2010
Graph 3-11: Restaurant Usage in Last Month, by Restaurant Type, 2010
18-34s drive guest counts
Graph 3-12: Mean Restaurant Usage in Last Month, by Restaurant Type, 2010,
by Age
And exhibit higher usage
Graph 3-13: Restaurant Usage in Last Month, by Restaurant Type, 2010, by Age
HH income
Graph 3-14: Mean Restaurant Usage in Last Month, by Restaurant Type, 2010,
by HH Income
Graph 3-15: Restaurant Usage in Last Month, by Restaurant Type, 2010, by HH
Income
Employment status
Graph 3-16: Mean Restaurant Usage in Last Month, by Restaurant Type, 2010,
by Employment Status
Graph 3-17: Restaurant Usage in Last Month, by Restaurant Type, 2010, by
Employment Status
9. Restaurant breakfast use
Breakfast day part accounts for less than 10% of all usage
Graph 3-19: Day Part Usage on Last Visit, 2010
Restaurant breakfast use in past month
Graph 3-20: Restaurant Breakfast Usage in Last Month, Type of Restaurant,
2010
Gender bias?
Graph 3-21: Restaurant Usage in Last Month for Breakfast, 2010, by Gender
Food retail may be siphoning sales from younger restaurant goers
Graph 3-22: Restaurant Usage in Last Month for Breakfast, 2010, by Age
HH income: Fast food as the great equalizer
“Great coffee”: aspiration or reality?
Graph 3-23: Restaurant Usage in Last Month for Breakfast, 2010, by HH Income
Employment status: sense of routine and daily obligation
Graph 3-24: Restaurant Usage in Last Month for Breakfast, 2010, by
Employment Status
Appendix: Consumer Survey
Chapter 4: Share of Stomach: Sales Analysis
Market size and overview
Flat sales—but read between the lines
Near-term challenges
Long-term outlook
Growth factors
Full-service caveat
Graph 4-1: Limited-service and full-service breakfast sales, 2005-2011
Breakfast daypart traffic growth outpaces industry
Fast food/QSR segment accounts for 80% of breakfast daypart purchases
Restaurants sales trends by daypart
Consumer food expenditure trends suggest migration to food at home spend
Graph 4-2: Consumer Food Expenditures, 2005-2008
Breakfast share of spend increases by 11% during 2005-2008
Graph 4-3: Meals Away From Home Expenditures, by Daypart, 2005-2008
Spending on breakfast away from home, by region
Graph 4-4: Breakfast Away From Home Expenditures, by Region, 2008
Spending on breakfast away from home, by age
Graph 4-5: Breakfast Away From Home Expenditures, by Age, 2008
Spending on breakfast away from home, by income
Graph 4-6: Breakfast Away From Home Expenditures, by Income, 2008
Spending on breakfast away from home, by race/ethnicity
Graph 4-7: Breakfast Away From Home Expenditures, by Race/Ethnicity, 2008
Daypart meal spend analysis
Breakfast meal spend approaches that for lunch at fast food & family restaurants
Graph 4-8: Consumer Restaurant Meal Spend, by Daypart and Restaurant Type,
2010
Breakfast meal spend, fast food versus family restaurants
10. Graph 4-9: Breakfast Meal Spend, Fast Food Versus Family Restaurants,
Selected Demographics
Meal spend by daypart, fast food restaurants
Graph 4-10: Meal Spend by Daypart, Fast Food Restaurants, Selected
Demographics
Chapter 5: Breakfast Trends, Innovations & Strategies
Fast food/QSR pushes breakfast value envelope
Extreme affordability strategy extends to breakfast
McDonald‟s $1 value menu to pressure competition
Burger King addresses breakfast challenges
A subversive BK Breakfast Muffin
BK Breakfast Bowl for under $3
Seattle's Best-branded coffee program
Wendy‟s to reenter breakfast wars
Subway rolls out nationwide breakfast program
Fast casual breakfast players results a mixed bag
Au Bon Pain grows breakfast year-over-year
Einstein Noah and Panera Bread tread water
Atlanta Bread does breakfast to the tune of 20% of sales
Other fast casual breakfast moves
Family restaurants push everyday value
Full-service value menus
Value in portion size
Convenience trends
All-day breakfast
Breakfast catering
Customization
I said, “Coffee!”
Coffeehouses embrace value bundling
And Starbucks cashes in on mid-tier Seattle‟s Best
Sandwiches rule the breakfast menu
Health on menu
Dunkin‟ Donuts sprinkles health onto the menu
Chick-fil-A adds yogurt parfait
A comforting healthful breakfast
Fruits and smoothies
Chapter 6: Breakfast Restaurant Selection Analysis
Note on reading charts
Breakfast restaurant selection influencers
Overview: coffee, routine and low price significantly shape restaurant breakfast
decision
Graph 6-1: Breakfast Restaurant Selection Influencers, 2010
Restaurant selection: convenience influencers
Gender: men = linear routine; women = task balancing routine?
11. Graph 6-2: Restaurant Selection: Breakfast Convenience Influencers, by Gender,
2010
Age: work life holds the key
Graph 6-3: Restaurant Selection: Breakfast Convenience Influencers, by Age,
2010
HH income breeds breakfast routine
Graph 6-4: Restaurant Selection: Breakfast Convenience Influencers, by HH
Income, 2010
Employment status
Graph 6-5: Restaurant Selection: Breakfast Convenience Influencers, by
Employment Status, 2010
Urban, Suburban, or Rural location
Graph 6-6: Restaurant Selection: Breakfast Convenience Influencers, Urban,
Suburban, Rural, 2010
Restaurant selection: breakfast menu item influencers
Gender: women more likely to have value orientation; men as inclined to want
healthful offerings
Graph 6-7: Restaurant Selection: Breakfast Menu Influencers, by Gender, 2010
Age: younger patrons seek a difficult balancing act
Graph 6-8: Restaurant Selection: Breakfast Menu Influencers, by Age, 2010
HH income: healthy options and small portions
Graph 6-9: Restaurant Selection: Breakfast Menu Influencers, by HH Income,
2010
Employment status
Graph 6-10: Restaurant Selection: Breakfast Menu Influencers, by Employment
Status, 2010
Restaurant selection: breakfast cost threshold influencers
Gender: women more likely to gravitate to lower price points
Graph 6-11: Restaurant Selection: Breakfast Cost Threshold Influencers, by
Gender, 2010
Age: $3 is a hit across the board
Graph 6-12: Restaurant Selection: Breakfast Cost Threshold Influencers, by Age,
2010
HH income
Graph 6-13: Restaurant Selection: Breakfast Cost Threshold Influencers, by HH
Income, 2010
Employment status
Graph 6-14: Restaurant Selection: Breakfast Cost Threshold Influencers, by
Employment Status, 2010
Restaurant selection: breakfast dinein partner influencers
Gender: it‟s a work thing
Graph 6-15: Restaurant Selection: Breakfast Dine-in Partner Influencers, by
Gender, 2010
Age: 65+ not interested in eating alone
Graph 6-16: Restaurant Selection: Breakfast Dine-in Partner Influencers, by Age,
2010
12. Restaurant selection: breakfast takeout partner influencers
Gender
Graph 6-17: Restaurant Selection: Breakfast Takeout Partner Influencers, by
Gender, 2010
Age
Graph 6-18: Restaurant Selection: Breakfast Takeout Partner Influencers, by
Age, 2010
Employment status
Graph 6-19: Restaurant Selection: Breakfast Cost Threshold Influencers, by
Employment Status, 2010
Chapter 7: Breakfast Menu Selection Analysis
Note on reading charts
Menu selection influencers, by daypart
Graph 7-1: Menu Selection Influencers, by Daypart, 2010
Breakfast restaurant menu selection influencers, by demographic
Gender
Graph 7-2: Breakfast Menu Selection Influencers, by Gender, 2010
Age
Graph 7-3: Breakfast Menu Selection Influencers, by Age, 2010
HH income
Graph 7-4: Breakfast Menu Selection Influencers, by HH Income, 2010
Employment status
Graph 7-5: Breakfast Menu Selection Influencers, by Employment Status, 2010
Urban, suburban, or rural location
Graph 7-6: Breakfast Menu Selection Influencers, by Rural/Urban/Suburban,
2010
Chapter 8: Frequent Coffee Drinkers: Custom Usage, Attitudes and Behavior
Drilldrown
Frequent coffee drinkers
Graph 8-1: Frequent Coffee Drinkers: Selected Demographics
Importance of breakfast to frequent coffee drinkers
Bring on better coffee
Graph 8-2: Importance of Breakfast, Frequent Coffee Drinkers, Selected
Demographics
Restaurant types visited by frequent coffee drinkers
Coffeehouses maintain an edge on fast food
Graph 8-3: Restaurant Types Visited for Breakfast, Frequent Coffee Drinkers,
Selected Demographics
Restaurant selection factors, mean restaurant use and average spend
It‟s all about the coffee
More coffee means more coffeehouse visits—but not fast food visits
Coffee drinkers help enrich coffers
Graph 8-4: Restaurant Breakfast Selection Factors, Mean Restaurant Use, and
Average Spend, Frequent Coffee Drinkers
13. Chapter 9: Breakfast on the Menu: Restaurant Brand Analysis
Note on food lifestyle segmentation charts
McDonald‟s
A $7.5 billion breakfast behemoth rolls dice on high-volume, low-ticket breakfast
Breakfast strategy: sales growth = guest count growth
Breakfast menu mix
Core customers: Convenience and Ease and Weekend Cooks
Graph 9-1: McDonald‟s Usage Frequency Analysis, Food Lifestyle Segmentation
McDonald‟s core low- and high-frequency users
Graph 9-2: McDonald‟s Core Demographics: Low- and High-Frequency Users
McDonald‟s by the numbers
Graph 9-3: McDonald‟s by the Numbers
Burger King
Barbell strategy
Reinvigorating breakfast
Brunch in testing stage
Longer breakfast hours
Convenience and Variety on a Budget
Graph 9-4: Burger King Usage Frequency Analysis, Food Lifestyle Segmentation
Burger King core low- and high-frequency users
Graph 9-5: Burger King Core Demographics: Low- and High-Frequency Users
Burger King by the numbers
Same-store sales dip during nine months ending March 2010
Graph 9-6: Burger King by the Numbers
Wendy‟s
2009-2010 strategy: “Real” food at a real value
Coming up in 2010 and 2011
Wendy‟s reenters breakfast wars with premium QSR differentiation
Local pricing
Acquire or be acquired?
“Food Lifestyle” segmentation groups a blend of McDonald‟s and Burger King
Graph 9-7: Wendy‟s Usage Frequency Analysis, Food Lifestyle Segmentation
Wendy‟s core low- and high-frequency users
Graph 9-8: Wendy‟s Core Demographics: Low- and High-Frequency Users
Wendy‟s by the numbers
Graph 9-9: Wendy‟s by the Numbers
Starbucks
Recession strategy pays dividends
Menu pricing strategies and customer incentives
Pricing and bundling
Brand extensions: VIA and Seattle‟s Best
Rewards, technology and new retail formats
On the food and coffee front
Core Starbucks users a relatively healthful bunch
Graph 9-10: Starbucks Usage Frequency Analysis, Health Attitudes
Graph 9-11: Starbucks Usage Frequency Analysis, Food Lifestyle Segmentation
14. Starbucks core low- and high-frequency users
Graph 9-12: Starbucks Core Demographics: Low- and High-Frequency Users
Starbucks by the numbers
Graph 9-13: Starbucks by the Numbers
Bob Evans
On the menu: off-premises growth, remodeling, and quickening service
Menu trends
New on the menu
Breakfast in a big way
Emphasizing value for money
Bob Evans by the numbers
Graph 9-14: Bob Evans by the Numbers
Cracker Barrel Old Country Store, Inc.
Restaurant operations
Retail operations
2009-2010 strategy: couponing, promotions & Seat to Eat
Menu item innovation
Guest count demographics
Reformed Traditional users may look to Cracker Barrel to meet them halfway on
health
Graph 9-15: Cracker Barrel Usage Frequency Analysis, Food Lifestyle
Segmentation
Cracker Barrel core low- and high-frequency users
Graph 9-16: Cracker Barrel Core Demographics: Low- and High-Frequency
Users
Cracker Barrel by the numbers
Graph 9-17: Cracker Barrel by the Numbers
Denny‟s
Recession challenges: region, lower-middle income demographic and late-night
2009-2010 breakfast menu strategy
Build Your Own Grand Slam continues to deliver
But other rollouts round out the menu
2010 shift to everyday value supported with LTO entrees
$2 $4 $6 $8, who do we appreciate?
Post-Super Bowl free Grand Slam promotions continue
Convenience moves
Courting older consumers and students
Weekend Cooks help drive sales
Graph 9-18: Denny‟s Usage Frequency Analysis, Food Lifestyle Segmentation
Store-made, per-cooked meal cross-tie?
Graph 9-19: Denny‟s Usage Frequency Analysis, Food Competition
Denny‟s core low- and high-frequency users
Graph 9-20: Denny‟s Core Demographics: Low- and High-Frequency Users
Denny‟s by the numbers
Graph 9-21: Denny‟s by the Numbers
Appendix on food lifestyle segmentation charts
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