Banking on Breakfast

These days, in the restaurant world, the oft-heard truism that breakfast is “the most important meal of the day” conveys a multidimensional message. In addition to breakfast’s nutritional merits, it may also prove one of today’s most-important—if elusive—opportunities in foodservice.

The 2007 “Breakfast Category Report” from Chicago-based Technomic finds that despite growing sales, breakfast remains a “major underdeveloped opportunity.” Breakfast has been staging something of a rally, but one riddled with caveats, contradictions and conflicting opinions.

Les Winograd, public relations coordinator, Subway (Doctor’s Associates, Inc.), says breakfast is booming as franchisers sign up to participate in the chain’s breakfast omelet offerings. Abby Albaum, marketing manager, First Watch Restaurants, Inc., also says breakfast is still big business as, in a contracting economy, people opt to spend their dining-out dollars on more-reasonably-priced breakfasts rather than relatively expensive dinners.

Patrick Lenow, spokesperson, IHOP, suggests people are drawn to breakfast, and to breakfast all day, both for the value—and psychological reasons. Breakfast, he says, is associated with “weekend mornings around the table with family” that delivers sentimental punch.

However, Harry Balzer, vice president, NPD Group, Port Washington, NY, says although breakfast on the go is growing, the sit-down portion of the market has been stagnant. “People are eating on the go and, more important, eating in the car, so it’s the ability to buy a breakfast while you’re driving,” he says. “Buying it and eating it in the car—that’s the single biggest change in the restaurant business. There’s plenty of space in take-out. The sit down has been a market-share battle for years.”

CHALLENGING CONSUMERS—AND THE ECONOMY

“People’s habits are strongly entrenched for breakfast,” says Bob Sandelman, CEO, Sandelman and Associates, Barrington, IL. “Either you’re a breakfast eater or not, and if you’re a breakfast eater, you’re either an eat-at-home or an eat-away-from-home person.”