Portability 

Survey research conducted with midscale chains reveals that 100% of breakfast items are available on a take out basis.  In other words, if it can be prepared, then it can be packaged and sold. We suspect that the vast majority of  midscale breakfast volume is dine-in and that patrons do not regard midscale chains as serious and efficient as QSR in developing the breakfast-to-go franchise. 

Plated entrees such as skillet breakfasts, egg entrees, breakfast cakes are perfect for dine-in situations.   Breakfast patrons, in practice, seem to favor Portable-Hand Held foods that may be eaten with one hand on the wheel or the keyboard or phone.  Migrating up the scale from Plated to Hand Held is an opportunity.  In the event leading meat, cereal and bakery suppliers do not come up with more portable breakfast options, breakthrough ideas may come from non-traditional foods or non-breakfast menu parts.  Approximately 50% of all breakfast food and beverage menu items in 2004 can be considered portable, up from 43% in 1998, indicating how important portability has become.  (Source MenuMine database)

 

 

Best --- Portable-Handheld: Coffee, Tea, Hot Chocolate, Juice, Milk, Breakfast Sandwiches, French Toast Sticks, Fresh Whole Fruits,  Baked Sweet Goods, Bagels and Biscuits, Hash Brown Patties/Tots, Burritos, Quesadillas, Wraps, Yogurt in a Tube 

Better --- Portable-Utensil Bound: Cereal Bowls to go, Yogurt in a Cup, Fruit in a Cup

Good --- Portable-Plated: Egg Entrees,  Pancakes, Waffles, French Toast, Skillet Entrees, Meat Sides, Hash Brown Sides

 

What Chains Are Menuing:

Here's what some chains are doing to meet on-the-go demand: 

Taco Cabana---BBQ Breakfast Burrito

IHOP---Country Griddle Cakes

Del Taco---Bacon & Egg Quesadilla

La Madeleine---Low Fat Organic Granola

McDonalds---Sausage McGriddles

Bob Evans---Breakfast Fruit Cup

Farmer Boys---Breakfast Burrito

Carl's Jr.---Breakfast Quesadilla

Village Inn---Ham & Swiss on a Croissant

Hof's Hut---Fajita Steak Omelet

Smokey Bones---Hot Cinnamon Donuts

Circle K---Apple Fritters

Wall Street Deli---Breakfast Wrap w/ Egg

LePeep---Granola Blues w/Sausage

 

 

QSR Chain Concepts Offering Breakfast

QSR chains that are most likely to serve breakfast are C-Stores and Coffee/Snack chains, all of which (100%) serve hot beverages such as coffee/tea and sweet baked goods.  Sandwich chains, on the other hand, have a 52% chance of serving hot beverages and a very low (25%) chance of serving a baked good, suggesting room to grow.  Burger, pizza and chicken chains have moderate incidence (20% to 60% incidence) of hot beverage service and even lower incidence of baked goods (20% to 25%).  Starbucks, Dunkin’ Donuts and others have understood and exploited this understanding of a “coffee and baked good” breakfast.  Indeed, 24% of portable food and beverage items on chain menus in 2004 are specialty coffees, up from 12% of the total in 1998.  

 

QSR Chain Concept	Baked Good (% serving)	Hot Beverage (% serving)
C-Store Chains	100%	100%
Coffee/Snack Chains	100%	100%
Sandwich Chains	25%	52%
Burger Chains	21%	65%
Chicken Chains	18%	51%
Pizza Chains	0%	21%
Others (seafood, asian, mexican)	0%	42%

 

 

Breakfast Sandwiches

Perhaps the biggest influence on portable breakfast is the breakfast sandwich.  Ever since McDonald’s showed the way with the Egg McMuffin, breakfast sandwiches have been selling better than hot cakes.  Breakfast sandwiches now account for 32% of menued portable breakfast foods (and perhaps 40% of volume) in 2004, up from 26% in 1998.  Not every QSR chain on every corner, however, serves breakfast.  C-Stores, Sandwich Chains and Burger Chains are the most likely QSR segments to serve breakfast sandwiches.  Pizza and Mexican segments seem to be holding back. 

 

 

Share of  Breakfast Sandwiches Menued    

A greater variety of breakfast sandwiches are now being offered by a more diverse group of QSR chains. Back in 1998, burger chains accounted for 42% of breakfast sandwiches on the menu; today it's 35%.  The reason is Sandwich/Bakery chains, C-Stores and Coffee/Snack chains have all increased their number of Breakfast Sandwiches.  In fact, only Chicken QSRs have decreased their number:  

 

 

Share of Breakfast Sandwiches Menued, by QSR Segment

QSR Chain Concept	2004	1998
Burger Chains	35%	42%
Sandwich/Bakery Chains	33%	30%
C-Store Chains	11%	3%
Mexican QSR Chains	7%	7%
Chicken QSR Chains	7%	14%
Coffee/Snack Chains	7%	4%
Total:	100%	10