The breakfast party wakes up

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ALEXANDRIA, Va.—Traffic and sales for the breakfast day portion during the second quarter were flat from declines for the rest of the day, according to data from the NPD Group. While stagnation doesn’t seem like a big improvement, Forbes reports that stagnation in traffic and spending is a success story as consumers tighten budgets in the face of inflation concerns, and stagnation also provides a solid foundation for growth. short term.

Starbucks is confident that Breakfast Day will return after being hit hard by the COVID-19 pandemic, and that it’s coming back with “speed.”

“There is no doubt that the morning day is going to come back strong. And it’s not a question of if, it’s a question of when,” Starbucks CEO Howard Schultz said during the company’s third-quarter earnings call.

The breakfast share at Starbucks accounted for 51% of the company’s sales in the third quarter, and chief operating officer John Culver said breakfast sales were starting to return to normal.

We are optimistic that these morning routines will return,” he said.

At McDonald’s, “breakfast was the best-performing time slot in the U.S. mix,” CEO Chris Kempczinski said during the company’s second-quarter earnings call, as U.S. mix increased by 3, 7%.

Breakfast is the most profitable part of the day for many businesses, including McDonald’s, due to cheaper food, increased beverage purchases and consolidation. At McDonald’s, breakfast accounts for about 25% of the company’s overall sales.

Wendy’s launched its breakfast menu shortly before the pandemic hit, and sales volumes are now driving profits for the company and its franchisees.

Numerator’s data paints an even brighter picture. Total breakfast spending in QSRs more than recovered from the pandemic-induced decline in 2020, which was down 16%, according to numerator data. Spending is now up 32% in the last 52 weeks ended June 12 compared to 2019.

However, 37% of consumers surveyed by Numerator said they purchase breakfast less frequently from QSRs. The main reasons are because of a change in finances (32%) and reduced consumption due to a change in travel routine (23%).

Many Americans are still working from home and have not returned to pre-pandemic transportation. A recent Conference Board survey found that only 4% of business leaders require all employees to return to the office full-time. Less than half (45%) said they require some workers to return five days a week.

Although consumers are not on the move like they were before the pandemic, they are leaving their homes much more frequently now than they have been in the past two years, which benefits breakfast day .

“Mobility is quite positive here. Business is doing well in all segments. We see the strength of our traditional basic breakfast offering. We think there’s more to come,” Restaurant Business International CEO Jose Cil said during the company’s second-quarter earnings call.

Wendy’s COO Todd Penegor believes breakfast day will likely increase once the children return to school.

“It should definitely help our breakfast business. I think there would be more benefit to some of the seasonality as people get back into routines later in the year, which could potentially help support our accelerated sales growth,” he said on Wendy’s latest earnings call.

Wendy’s clearly sees the value of breakfast by investing $16 million in time slot marketing throughout this year.

“We know there’s a ton of upside ahead of us this year and long term as we seek to capture our fair share of the huge breakfast (quick service restaurant) business,” Penegor said. .

Here’s how convenience stores wake up the morning part of the day.

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