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All Back Issues » May/June 2007 Issue

Understanding Opportunities Within the Breakfast Part
 
David Henkes
David Henkes

Technomic

Within foodservice, breakfast is hot again. Many restaurants, both full- and limited-service, are rediscovering the opportunities present in this underdeveloped daypart. This has a few implications for the lodging side of the industry, where breakfast has always been better executed and a bigger priority. Chief among them is the potential competitive threat. As more restaurants wake up to the opportunities within this emerging daypart, consumers will have more options and may choose a restaurant option instead of your hotel restaurant.

A study of the trends impacting the morning daypart can help hotel operators build a better breakfast business. We’ve uncovered some important findings for operators looking to expand, rejuvenate, or simply re-evaluate their breakfast program.

Convenience is key. Most restaurants are working to provide maximum convenience for the consumer. Convenience stores and fast-food restaurants promote speed of service as a major selling point for their breakfast programs, and this message has resonated strongly with busy consumers. This is just as important in hotels, where guests who are time-pressed want convenient options. While some foods may not carry well, take-out is one potential solution for these guests. Portable foods that can be eaten on the go are also valuable; breakfast sandwiches in particular have emerged as popular items.

There are opportunities for “trade up.” We are seeing more consumers who want to buy the “premium” version of a product—and not just as an occasional indulgence. Many regularly upgrade to get an item they feel they deserve. Premium coffee has benefited from this trend, but upgraded food items can also boost check averages.

Menu innovation can drive trial, but the basics still provide the volume. Innovation is much more difficult in a daypart so strongly linked with a limited menu mix of eggs, bacon, pancakes, and the like. Creating new products that not only generate trial but also drive incremental business is a challenge for many operators. Both full- and limited- service restaurants are trying new things—high-end omelets, ethnic ingredients, multiple sizing options, unique packaging—that may provide inspiration for hotels looking to innovate.

Consumers want healthy breakfast items that taste good. Health and wellness is a major decision driver for a segment of the population. To meet their needs, a wide variety of healthful and tasty items should be incorporated into the main menu, not marginalized as “special” fare. Examples include turkey or chicken sausages, fresh fruit, or breakfast sandwiches made with tortillas instead of bread.

Consider different offerings or specials on weekdays versus weekends. In the consumer’s mind, weekday and weekend breakfast are two different occasions. During the week, busy lifestyles mean morning meals are typically quick and small, while weekend breakfasts tend to be more relaxed, casual, and perhaps indulgent. Such distinctions can lead to opportunities for customizing offerings or developing different specials or meal deals for these different occasions.

We believe breakfast is poised for growth. Restaurants are refocusing on, and re-energizing, the breakfast daypart. Within the lodging segment, savvy operators should take a hard look at their morning menus and any revisions that might be necessary to more successfully compete in this category.

David Henkes is a senior principal at Technomic, a Chicagobased consultancy focused on away-from-home eating and drinking. For more information, contact David at 312-506-3927 or at dhenkes@technomic.com.