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For nearly a century, breakfast has been big business for the U.S. restaurant industry, and it's about to get bigger.
According to the 2006 report from Packaged Foods, "The Revolution in Dayparts: Breakfast in the Foodservice Market", the current domestic breakfast market is worth $65 billion. In eight years it is predicted to swell in value to $83 billion. If fast-casual operators have their way, they'll grab a substantial share of that pie because market research indicates a growing number of breakfast eaters want a more upscale experience.
The a.m. rush
No question that breakfast is more important than ever to quick-service restaurants. Recent invigorated efforts to get food into the hands of hungry and time-starved Americans include Jack in the Box's all-day breakfast service, McDonald's test of the same, and Wendy's plans to add breakfast at several hundred stores this year — despite a failed breakfast attempt two decades ago.
Such interest in A.M. eats, said Jerry Couvaras, chief executive and president of Atlanta Bread Company, means the time is right for ramping up breakfast efforts in fast-casual.
"Breakfast is the new big thing," he said. "Everyone's got lunch ... but the last of the dayparts left up for grabs is breakfast."
Fast casual has its work cut out for it, however. While its customers aren't as price driven as QSR patrons, fast casual must meet or beat QSR's speed and convenience, and provide other compelling reasons for patrons to park and go inside the restaurant.
"If you don't have a drive-thru at breakfast you better have something else," said Steve Greene, chief operating officer at Camille's Sidewalk Café. "We first have to ask what we're doing differently from anyone else. ... Whatever that is, it must be more like the quick-casual experience than like fast food."
Greene said that means every dish must be prepared to order — heat lamps are verboten — with fresh ingredients and dishes each customer can customize slightly.
Just like QSR breakfast, fast casual also must be portable, said Darren Tristano, executive vice president for Technomic Information Services. "It's all about dashboard dining."
Greene agreed, but said the dish has to be much higher quality than quick-service grab-and-go food.
"Yes, the customer wants to get in and get out quick, but we can't just throw a donut at them," he said. "But there's no doubt they want something they can eat in the car or at their desk."
Many restaurant players also do coffee well, Greene said, but no one had staked a reputation on serving fresh-squeezed orange juice. Camille's did that both to echo its fresh-food message and differentiate itself, he said.
