DID YOU KNOW? TACO BELL RISING

BREAKFAST BEAT
Vol. 13 • April 212 / An Official Newsletter of the American Egg Board
DID YOU KNOW?
• The amount of cholesterol in a
single large egg has decreased
by 14% according to the new
United States Department of
Agriculture (USDA) nutrition
data. One large egg now
contains 185mg of cholesterol,
down from 215mg. Consuming
an egg a day fits easily within
dietary guidance, which
recommends limiting
cholesterol consumption to
3mg per day.
• When eating an egg, don’t
skip the yolk. One egg provides
six grams of all-natural, high
quality protein. While many
think that the egg white has
all of the protein, the yolk
actually provides nearly
half of it.
• The average American eats
248 eggs per year, and the
average hen lays 265 eggs each
year. One hen can provide
enough eggs for one person
for the year.
• When considering the
purchase of eggs for your
operation, there are a number
of available options. America’s
egg farmers produce eggs
from multiple production
systems – conventional, cagefree, free-range and organic.
• The nutrient content of
eggs from the same breed
of hen fed the same diet is not
affected by whether hens are
raised free-range or in floor or
conventional operations. It is
solely determined by the feed.
TACO BELL RISING
Taco Bell has rolled out its new breakfast
program, FirstMeal,™ in nearly 800 locations.
Priced at 99 cents to $2.79, the new menu offers
11 items, which include a variety of breakfast
burritos and wraps stuffed with eggs and choice of sausage,
bacon, or steak. Hash browns, Cinnabon Delights, orange juice,
and both hot and iced coffees round out the menu. The chain
teamed up with Cinnabon, Johnsonville, Tropicana, and Seattle’s
Best Coffee to create its breakfast menu.
Taco Bell currently offers breakfast in 11 western states, as well
as select stores in Oklahoma, Texas, and Ohio. Locations in the
eastern U.S. will be adding FirstMeal™ throughout 2013, with
some stores sampling FirstMeal™ items during the FourthMeal™ late-night hours. Additional
item testing will continue with more breakfast sandwiches and yogurt parfaits. The breakfast
program is planned to be available at all 5,800 U.S. locations by the end of 2014.
Who Wants Breakfast?
Consumers are pro-breakfast, plain and simple.
• 58% of consumers would like to be able to
customize their food orders when dining out.(3)
• 57% of survey respondents believe that
breakfast is more important than lunch
The message is clear: give ‘em what they want,
or dinner, and the number is even higher
when they want it!
for women, at 62%.(1)
• In 2011, all-day breakfast led the list of
things consumers wanted to see more, with
women at 41% and those aged 18-24 at 51%.(1)
But just adding a few “me-too’s” won’t suffice.
Listen to what consumers want:
• 24% of consumers currently say they want
to see more ethnic items and flavors
offered at breakfast, up from 16% two
years ago.(2)
Raising The Bar
Although yet to be a major factor in the
breakfast daypart, some Quick-Service
Restaurants (QSRs) are using a “barbell”
strategy for their menus. The approach
balances value menus with premium items
at prices that push QSR pricing norms and
attracts fast-casual patrons. Top-tier thinking
at key chains include:
• Burger King - Chef’s Choice burger line
is priced at $4.99, made with upscale
ingredients.
• Carl’s Jr./Hardee’s - Southwest Patty Melt
pricing varies but centers on $4.89.
• Wendy’s - Black Label cheeseburgers in
Spicy Santa Fe and Bacon Portabella
versions are being tested at $4.49 to $4.69.
• Taco Bell - The premium Cantina line is
in test with prices from $4.79 to $4.99.
• McDonald’s - Management is looking at
foreign market premium sandwich
successes for the U.S. market. Potential
candidates include the 1955 Burger,
English Pub Burger, and Chicken, Bacon
& Onion Sandwich.(4)
Cross-Pollination
Just as QSRs are adding fast-casual-type menu items to entice fast-casual
patrons, fast-casual chains are taking pages from both the QSR and Full
Service Restaurant success playbooks.
QSR moves:
• Top QSR chains are adding and/or testing upscale sandwiches at $5 and
over. (See “Raising the Bar”)
• McDonald’s is upgrading and modernizing interiors to compete with the
fast-casual experience.
Fast-casual moves:
• Bruegger’s and Einstein Bros. Bagels promote all-day breakfast and have
added hot breakfast sandwiches.
• Panera has drive-thrus in 119 locations and is planning 75 more in 2012.
(NOTE: Panera’s hot breakfast sandwich sales increased 15% in 2011.)(5)
• Panera offers table service in over 200 locations with plans for more.
With only 4% of visits to all restaurants, fast-casual traffic is dwarfed by QSR
numbers, which account for around 61%(6). But while the number of QSR
breakfast items increased 17.3% from Q3 2009-Q3 2011, those available at
fast-casual rose 28.4%(6). The battle is on.
Chain Activities
Così’s new breakfast items
are the Steak & Eggs (eggs,
beef medallions, pesto, and
Provolone); and the Costa
Mesa (eggs, pico de gallo,
guacamole, and Cheddar).
McDonald’s
• Began testing a Jalapeño Salsa McMuffin (muffin or biscuit,
egg, white Cheddar cheese, and bacon or sausage) in Houston.
• Added cheese Danish, muffins, banana bread, and scones to
its New England breakfast menu. The items are available all day.
Burger King
• Offered two breakfast sandwiches (eggs with bacon, sausage,
or ham on a croissant, biscuit, or muffin) for $3 during February.
• Added a Southwestern Burrito (egg, sausage, cheese, and hash
browns); and a $1 Sausage Wrap in March.
Jack in the Box offered two Sourdough Breakfast Melts for $3.50
in a February LTO.
Dunkin’ Donuts has added an Angus Steak & Egg Bagel Sandwich.
Panera’s new breakfast
sandwich is the Mediterranean
Egg White on Ciabatta, with
basil pesto, roasted tomatoes,
spinach, and Vermont
Cheddar cheese.
Corner Bakery promoted
Power Panini Thins
(scrambled eggs, Parmesan and Cheddar cheese, with bacon,
sausage, or avocado and spinach) by giving free sandwiches to the
first 15,000 requesting them.
By the Numbers
• 48.3% of all QSR locations offered
breakfast at the end of 2011.(7)
• Breakfast accounts for about 12% of
total restaurant industry sales, generating about $42 billion
annually.(8)
• Item counts on QSR breakfast menus grew 17.3% from Q3
2009-Q3 2011, increasing the total by 54 items.(6)
• 34% of those aged 18–24 say they would like to see more
ethnic items on breakfast menus.(9)
• About 50% of Mexican restaurants feature breakfast items.(7)
• Mintel expects breakfast restaurant sales to increase 18%
between 2011 and 2016 at current prices, or 8% after
adjusting for inflation.(6)
Follow us:
@twitter.com/Eggs4FoodServ
For more breakfast insights
and information go to
aeb.org/foodservice
PO Box 738 • Park Ridge, IL 60068-1340 • (847) 296-7043
SOURCES
1.
2.
3.
4.
5.
Technomic, The Breakfast Consumer Trend Report, 2011
Mintel, Quick Service Restaurants, US, September 2011
Mintel, 2012 Foodservice Trend Predictions, December 2011
McDonald’s Fourth Quarter Earnings Call, 1/24/2012
Nation’s Restaurant News (NRN), 2/8/2012
6.
7.
8.
9.
Mintel, Breakfast Restaurant Trends - US , February 2012
Datassential, February 2012
Technomic, reported in NRN, 1/19/2012
Mintel, Menu Insights, November 2011