Get more info on this report!Breakfast Trends in the U.S. Foodservice MarketAugust 1, 2010The recession is reshaping how consumers interact with the restaurant industry, and thebreakfast daypart is no exception: value pricing remains at the forefront of menustrategies, as growing guest checks often takes a backseat to generating guest traffic.However, unlike the lunch and dinner dayparts, breakfast benefits from long-termuntapped guest traffic potential, and it can generate healthy margins, factors that aredrawing major new players into the market.Packaged Facts‟ Breakfast Trends in the U.S. Foodservice Market estimates thatbreakfast daypart restaurant sales reached $37.2 billion in 2009, and forecasts that theywill reach $37.0 billion in 2010 and $37.7 billion in 2011. While these figures mayappear tepid at first glance, when viewed against the backdrop of lower overallrestaurant sales, the breakfast daypart has fared relatively well, taking share from lunchand dinner. In the final analysis, we believe that near-term challenges will give way tolong-term opportunity.Breakfast Trends in the U.S. Foodservice Market provides unique insights intoconsumers‟ evolving relationship with the breakfast daypart, helping restaurantoperators 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;
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 MethodologyOur methodology rests on a balance of data-centric expertise and holisticunderstanding, maximizing accuracy and depth of analysis. Report data is derived fromthorough 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
Additional InformationMarket Insights: A Selection From The ReportShare of Stomach: Sales AnalysisPackaged Facts estimates that breakfast daypart restaurant sales reached $37.2 billionin 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 backdropof lower overall restaurant sales, the breakfast daypart has fared relatively well, takingshare 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 thebulk of food expenditure spending growth during 2005-08 has come from spending onfood at home, with food-away-from home expenditures as a percentage of foodexpenditures 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 spenton 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
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 GrowthNew York, August 3, 2010 — The most important meal of the day continues to faceshort-term challenges related to the recession, but market research publisher PackagedFacts‟ Breakfast Trends in the U.S. Foodservice Market predicts consumer spendingon breakfast at restaurants will rebound from an anticipated downturn in 2010 toapproach $38 billion in 2011, as current value menu pricing strategies influence futurespending habits.“Fast food and QSR (quick-service restaurant) operators are playing the „price equalsvalue‟ card for everything it‟s worth. By pushing the envelope with $1 deals, they riskenabling a pool of „extreme affordability‟ customers. But the upshot for breakfast is thatit remains a relatively untapped daypart, so that traffic gained today may translate intoadditional revenue tomorrow,” says Don Montuori, publisher of Packaged Facts. “Webelieve that decisions by the likes of Denny‟s and Bob Evans to place everyday valuefor 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 spinningfull-service value menus and value in portion size.”Packaged Facts expects McDonald‟s foray into $1 breakfast menus to create pressureamong other fast food/QSR players to match its lead—an industry-wide trend previouslyglimpsed with the proliferation of non-breakfast $1 value menus. Burger King, Wendy‟sand Subway have already made major breakfast moves. The bottom line is that lowcost resonates with restaurant breakfast users, with 31% of respondents to PackagedFacts‟ proprietary survey claiming they have been influenced by a maximum $3 pricewhen selecting a restaurant for breakfast, versus 16% who placed a limit at $10.
Convenience influences consumer breakfast decisions, with convenience to work orerrands, routine, and the need to get somewhere else quickly factoring in. Also relevantare breakfast menu features, such as getting a favorite menu item, wide variety, andhealthy 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 increasefoot traffic.Even though restaurant sales fell during the recession and initial recovery, breakfasthas fared relatively well and has taken market share away from both the lunch anddinner dayparts. Packaged Facts found that only 34% of restaurant goers had eatenbreakfast at a restaurant in the past month and an even smaller percentage of thegeneral population said the same, which means the industry has an opportunity to woothe more than 150 million adult consumers who do not use restaurant breakfast.Breakfast Trends in the U.S. Foodservice Market provides unique insights intoconsumers‟ evolving relationship with the breakfast daypart, helping restaurantoperators position their brands and menus for consumers in 2010 and beyond.Highlights of the study include directional consumer behavioral and attitude analysis viaPackaged Facts‟ proprietary Consumer Restaurant Outlook Tracker; proprietaryanalysis of average meal spend by restaurant type and by daypart, with a focus on thebreakfast daypart, to help target consumers who can bring in higher guest checkaverages; 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, includingconsumer goods and retailing, foods and beverages, demographics, pet products andservices, and financial products. Packaged Facts also offers a full range of customresearch services.Table of ContentsChapter 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
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 movesChapter 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
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 OtherChapter 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
Looking ahead: Consumers more likely to save & spend on groceries than spendat restaurantsGraph 3-2: Consumer Restaurant Tracker: Next 3 Months: A Top Line ViewEating breakfast at home had significant tractionStudents, 18-24s and parents more likely to eat breakfast at homeGraph 3-3: Consumer Restaurant Tracker: Present Behavior: Eating Breakfast atHomeRestaurant breakfast users as likely as restaurant goers in general to eatbreakfast at homeGraph 3-4: Consumer Restaurant Tracker: Present Behavior: Eating Breakfast atHome, Restaurant Breakfast UsersHigher-income versus lower-income fast food, family restaurant and coffeehousebreakfast usersGraph 3-5: Consumer Restaurant Tracker: Present Behavior: Eating Breakfast atHome, Restaurant Breakfast Users, HH Income SplitsPlanned spending on fast food appears grimGraph 3-6: Consumer Restaurant Tracker: Future Behavior: Fast FoodRestaurant SpendingIntended full-service spend lacks promiseGraph 3-7: Consumer Restaurant Tracker: Future Behavior: Full-ServiceRestaurant SpendingIntention to save money remains highGraph 3-8: Consumer Restaurant Tracker: Future Behavior: Saving MoneyRestaurant breakfast users more likely to plan higher fast food and full-servicespendingGraph 3-9: Consumer Restaurant Tracker: Future Behavior: RestaurantSpending, by Restaurant Breakfast TypeRestaurant usage and usage frequencyOverviewGraph 3-10: Mean Restaurant Usage in Last Month, by Restaurant Type, 2010Graph 3-11: Restaurant Usage in Last Month, by Restaurant Type, 201018-34s drive guest countsGraph 3-12: Mean Restaurant Usage in Last Month, by Restaurant Type, 2010,by AgeAnd exhibit higher usageGraph 3-13: Restaurant Usage in Last Month, by Restaurant Type, 2010, by AgeHH incomeGraph 3-14: Mean Restaurant Usage in Last Month, by Restaurant Type, 2010,by HH IncomeGraph 3-15: Restaurant Usage in Last Month, by Restaurant Type, 2010, by HHIncomeEmployment statusGraph 3-16: Mean Restaurant Usage in Last Month, by Restaurant Type, 2010,by Employment StatusGraph 3-17: Restaurant Usage in Last Month, by Restaurant Type, 2010, byEmployment Status
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 SurveyChapter 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
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 DemographicsChapter 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 Seattles 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 smoothiesChapter 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?
Graph 6-2: Restaurant Selection: Breakfast Convenience Influencers, by Gender,2010Age: work life holds the keyGraph 6-3: Restaurant Selection: Breakfast Convenience Influencers, by Age,2010HH income breeds breakfast routineGraph 6-4: Restaurant Selection: Breakfast Convenience Influencers, by HHIncome, 2010Employment statusGraph 6-5: Restaurant Selection: Breakfast Convenience Influencers, byEmployment Status, 2010Urban, Suburban, or Rural locationGraph 6-6: Restaurant Selection: Breakfast Convenience Influencers, Urban,Suburban, Rural, 2010Restaurant selection: breakfast menu item influencersGender: women more likely to have value orientation; men as inclined to wanthealthful offeringsGraph 6-7: Restaurant Selection: Breakfast Menu Influencers, by Gender, 2010Age: younger patrons seek a difficult balancing actGraph 6-8: Restaurant Selection: Breakfast Menu Influencers, by Age, 2010HH income: healthy options and small portionsGraph 6-9: Restaurant Selection: Breakfast Menu Influencers, by HH Income,2010Employment statusGraph 6-10: Restaurant Selection: Breakfast Menu Influencers, by EmploymentStatus, 2010Restaurant selection: breakfast cost threshold influencersGender: women more likely to gravitate to lower price pointsGraph 6-11: Restaurant Selection: Breakfast Cost Threshold Influencers, byGender, 2010Age: $3 is a hit across the boardGraph 6-12: Restaurant Selection: Breakfast Cost Threshold Influencers, by Age,2010HH incomeGraph 6-13: Restaurant Selection: Breakfast Cost Threshold Influencers, by HHIncome, 2010Employment statusGraph 6-14: Restaurant Selection: Breakfast Cost Threshold Influencers, byEmployment Status, 2010Restaurant selection: breakfast dinein partner influencersGender: it‟s a work thingGraph 6-15: Restaurant Selection: Breakfast Dine-in Partner Influencers, byGender, 2010Age: 65+ not interested in eating aloneGraph 6-16: Restaurant Selection: Breakfast Dine-in Partner Influencers, by Age,2010
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, 2010Chapter 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, 2010Chapter 8: Frequent Coffee Drinkers: Custom Usage, Attitudes and BehaviorDrilldrown 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
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
Starbucks core low- and high-frequency usersGraph 9-12: Starbucks Core Demographics: Low- and High-Frequency UsersStarbucks by the numbersGraph 9-13: Starbucks by the NumbersBob EvansOn the menu: off-premises growth, remodeling, and quickening serviceMenu trendsNew on the menuBreakfast in a big wayEmphasizing value for moneyBob Evans by the numbersGraph 9-14: Bob Evans by the NumbersCracker Barrel Old Country Store, Inc.Restaurant operationsRetail operations2009-2010 strategy: couponing, promotions & Seat to EatMenu item innovationGuest count demographicsReformed Traditional users may look to Cracker Barrel to meet them halfway onhealthGraph 9-15: Cracker Barrel Usage Frequency Analysis, Food LifestyleSegmentationCracker Barrel core low- and high-frequency usersGraph 9-16: Cracker Barrel Core Demographics: Low- and High-FrequencyUsersCracker Barrel by the numbersGraph 9-17: Cracker Barrel by the NumbersDenny‟sRecession challenges: region, lower-middle income demographic and late-night2009-2010 breakfast menu strategyBuild Your Own Grand Slam continues to deliverBut other rollouts round out the menu2010 shift to everyday value supported with LTO entrees$2 $4 $6 $8, who do we appreciate?Post-Super Bowl free Grand Slam promotions continueConvenience movesCourting older consumers and studentsWeekend Cooks help drive salesGraph 9-18: Denny‟s Usage Frequency Analysis, Food Lifestyle SegmentationStore-made, per-cooked meal cross-tie?Graph 9-19: Denny‟s Usage Frequency Analysis, Food CompetitionDenny‟s core low- and high-frequency usersGraph 9-20: Denny‟s Core Demographics: Low- and High-Frequency UsersDenny‟s by the numbersGraph 9-21: Denny‟s by the NumbersAppendix on food lifestyle segmentation charts
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