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THE BREAKFAST OPPORTUNITY Winning Foodservice Strategies for A.M THE BREAKFAST OPPORTUNITY Winning Foodservice Strategies for A.M. Sales INTRODUCTION Breakfast Breaks Out The breakfast daypart is growing fast—and becoming more sophisticated. For many foodservice operators, breakfast used to be little more than a second thought, a service that had to be provided in the morning to hungry patrons. Not anymore. Thanks to increased competition, a growing cohort of demanding consumers with more divergent schedules, and the emergence of the breakfast specialty segment, the daypart is receiving a lot more love. Breakfast is on 27.6% of US menus, and has grown 19.5% over the past four years. WHO IS THIS INFORMATION FOR? Not all foodservice segments face the same challenges when it comes to providing breakfast, but as channel boundaries continue to blur in the consumer’s mind, more ideas and solutions are becoming relevant. • Retail: Convenience Store and Supermarket Prepared Foods • Restaurants: QSR, Fast Casual, Midscale, Casual, Fine Dining • Onsite: B&I, Lodging, Hospitals, Long-Term Care and Senior Living, K–12, C/U The big challenge facing all operators, however, is the fact that not all consumers eat breakfast, and that when they do, approximately one quarter of them have it at home. 43% of consumers say that seeing more breakfast items on menus would encourage them to eat breakfast away from home more often. In this exclusive report, we will show you how to step up your breakfast game— and capture more daypart sales in the process. Sources: Datassential SNAP! Breakfast (2018); IFMA/Datassential CPP 2016, Breakfast: Consumer Insights NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 2 TABLE OF CONTENTS Chapter 1 The Big Picture · · · · · · · · · · · · · · · · · · · · · · · · · · · 4 What’s Driving Breakfast Trends · · · · · · · · · · · · · · · · · · · 5 All-Day Demand · · · · · · · · · · · · · · · · · · · · · · · · · · · 6 Healthy Cues · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 7 Coffee Leads the Sale · · · · · · · · · · · · · · · · · · · · · · · · · 8 Takeout for Convenience · · · · · · · · · · · · · · · · · · · · · · · 9 Chapter 2 Signature Specialties · · · · · · · · · · · · · · · · · · · · · · · 10 Variety: The Spice of A.M. Sales · · · · · · · · · · · · · · · · · · ·· 11 Eggs Get an Upgrade · · · · · · · · · · · · · · · · · · · · · · · · · 12 Batter Up · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 13 Better Baked Goods · · · · · · · · · · · · · · · · · · · · · · · · ·· 14 Chapter 3 New Horizons · · · · · · · · · · · · · · · · · · · · · · · · · · · 15 What’s Ahead for Breakfast · · · · · · · · · · · · · · · · · · · · ·· 16 Squeeze More Out of Juice · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 17 Global and Regional Trends · · · · · · · · · · · · · · · · · · · · ·· 18 A.M. Breaks · · · · · · · · · · · · · · · · · · · · · · · · · · · · · · 19 Conclusion Breakfast Is Big Business · · · · · · · · · · · · · · · · · · · · · · · 20 Breakfast Menu Momentum · · · · · · · · · · · · · · · · · · · · · 21 NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 3 CHAPTER 1 THE BIG PICTURE CHAPTER 1: THE BIG PICTURE HOW CONSUMERS DEFINE BREAKFAST What’s Driving Breakfast Trends Even the definition of what constitutes breakfast is changing for today’s consumers. Just what is breakfast, anyway? These days, it’s a fair question. 56% 32% For some people it’s a slice of toast and a cup of coffee or a Time of day Food included piece of cold pizza. For others, it’s a hearty grain bowl, a fruit- Any food eaten Traditional breakfast and-yogurt smoothie or blended juice, or a plate of bacon and in the morning as fare eaten at any time eggs with hash browns and an English muffin. And for some, a first meal it’s not even necessarily the first meal of the day. Breakfast is whatever consumers want it to be, and according 11% to Technomic, their perspective is changing, even as operators Not more by one continue developing and expanding their breakfast programs. than the other For instance, many Americans are skipping this daypart slightly more often, mostly at the expense of at-home breakfasts. The majority (62% vs 57% in 2015) now skip breakfast at least once during the week, and 39% (vs 35% in 2015) skip it at least once on weekends. The good news is, this indicates opportunities to grow away-from-home breakfasts, especially as consumers are increasingly considering breakfast to be a destination. Offering a menu mix of traditional and unique options, including more convenient choices, can help drive traffic. Source: 2017 Technomic Breakfast Consumer Trend Report NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 5 42% of breakfast consumers like dinner food at breakfast (such as breakfast burgers or pulled pork omelets). CHAPTER 1: THE BIG PICTURE WHEN DO YOU ENJOY BREAKFAST FOOD? ALL-DAY DEMAND Burgers in the morning, pancakes for dinner. Welcome to MIDMORNING SNACK the brave new world of all-day breakfast, where familiar a.m. 31% food and beverages and traditional dayparts have become a mix-and-match crazy quilt constructed by consumers. 33% 30% of consumers say they are purchasing breakfast fare beyond the morning hours. LUNCH 43% Spurred by a combination of cravings and convenience-seeking, 43% patrons are rewriting the rules about breakfast foods. And while breakfast tends to be the most conventional meal of the day— think bacon and eggs, toast, coffee, and juice—offering patrons AFTERNOON SNACK a mix of both familiar and more adventurous offerings will help satisfy all comers at all hours. This includes breakfast sandwiches 33% (the top menu item on all-day breakfast menus, according to 26% Technomic), breakfast tacos or pizza, frittatas, grain bowls, smoothies, and specialty coffee and tea beverages. DINNER OPERATOR SPOTLIGHT 50% Tim Hortons has introduced Breakfast 59% Anytime, with a menu that includes breakfast sandwiches and wraps, hash EVENING SNACK B.E.L.T. browns, and the Bagel 25% 24% In addition, Technomic anticipates growing demand for “second breakfast,” an emerging daypart between traditional lunch and dinner that aligns with increases in snacking. With many guests LATE-NIGHT SNACK OR MEAL preferring to eat smaller meals more often, this mini-meal might 29% comprise anything from oatmeal or a fruit parfait to an indulgent latte to something heartier, depending on the individual’s appetite. 25% % OF CONSUMERS AGE 18–34 Sources: 2017 Technomic Breakfast Consumer Trend Report; % OF CONSUMERS AGE 35+ Datassential Foodbytes, Behold Breakfast, November 2016 NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 6 CHAPTER 1: THE BIG PICTURE FASTEST-CHANGING HEALTH CLAIMS HEALTHY CUES The growing focus on nutrition, wellness, and better-for-you eating is catching up to breakfast. And that has major implications for morning menus. According to Technomic, approximately 25% of consumers overall, and a third of Millennials, would be interested in more chicken and turkey 39% 19% 19% 18% 17% options on breakfast menus. Seafood is another breakfast-ready protein VEGETARIAN GLUTEN FREE NO SUGAR NATURAL NONFAT that consumers consider to be healthier than pork or beef products. Source: Technomic MenuMonitor; Q3 2015–Q3 2017; Operator Incidence 29% TRY THIS OF CONSUMERS ARE LOOKING FOR BETTER-FOR-YOU OPTIONS AT BREAKFAST. • Savory Toast • Greek Yogurt or Skyr • Housemade Protein Bars (such as avocado, ricotta, (top with fruit, honey, or hummus) nuts, and/or berries) • Breakfast Bowls Operators could also appeal to younger patrons by offering more vegetarian (including “power” and vegan options. Since vegetarian is also the fastest-growing health claim, • Turkey- and Other Poultry- • Whole Grain Porridge ingredients like according to Technomic, meatless breakfast dishes are already on the rise. Based Breakfast Meats acai and quinoa) • Tofu Scrambles • Upgraded However, healthier options must meet consumers’ primary demands for Oatmeal breakfast: choices that are filling and provide enough energy to start the • Smoothies day. Beyond these claims, consumers are especially drawn to items that are identified as all-natural and free of artificial ingredients. • Premium Juices/Juice Blends (including fruit and veggie combos) OPERATOR SPOTLIGHT • Tea Specialties The breakfast offerings at Locali Conscious (including chai) Convenience include fruit chia bowls, probiotic • Bircher Muesli smoothies, and a line of vegan breakfast sandwiches. (Swiss-style cold cereal made with whole grains, raisins, and nuts) • Sources: 2017 Technomic Breakfast Consumer Trend Report; Smoked Fish IFMA/Datassential CPP 2016, Breakfast: Consumer Insights NESTLEPROFESSIONAL.COM • 1-800-288-8682 • 7 CHAPTER 1: THE BIG PICTURE The latte is the If paired with descriptors like “hand- Nearly half (49%) most popular crafted,” “sustainable,” and “organic,” of younger consumers’ COFFEE LEADS THE SALE coffee drink in brewed coffee could be worth coffee orders are Coffee consumption is on the rise, but there’s more to it the United States. a higher price to consumers. for specialty varieties. than regular and decaf. Understanding the nuances is key to leveraging the sales potential of this iconic breakfast staple. According to the National Coffee Association, the What’s Hot in Coffee: Menu Adoption Cycle percentage of Americans drinking coffee on a daily basis Responsibly sourced coffee, specified origins and roasts, and premium specialty beverages are on the leading edge. increased to 62% in 2017, up from 57% in 2016. This uptick was particularly strong among younger consumers, house blend pumpkin latte vanilla caramel especially
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