OAKRBOOK TERRACE, Ill. -- It’s been a little over two months since McDonald’s cracked the code (and the eggs) and began offering breakfast around the clock. Early headlines, based primarily on franchisee feedback, called it everything from a headache to a nightmare to a disaster.
But now, the consumer has spoken, and analysts are preparing to call it a success.
Daylong access to Egg McMuffins and hash browns have helped the chain gain new customers and boost check averages during lunch, according to NPD Group’s Checkout Tracking service. Since the launch, one-third of customers who ordered a breakfast item outside of the traditional morning hours had not been inside a McDonald’s at all prior to the rollout. Among consumers purchasing breakfast foods during lunch hours, 61% also bought non-breakfast items, which contributed to a bump in average check size.
Given the importance c-stores place on the day-part (35% of c-store operators in a CSP study say it’s the meal with the most growth potential, compared to just 16% of QSR and fast-casual operators), now’s a key time to make sure your program can compete.
Also, CSP Daily News spoke with Technomic director Laura McGuire for ideas on how to stay focused on the morning menu as McDonald’s takes a bite out of breakfast:
1. Consider Combos and Value Menus
“Technomic data shows that 57% of consumers ages 18 to 24 say that breakfast combo meals are important offers at foodservice locations,” said McGuire. Create—and properly market—a combo meal featuring a coffee drink or breakfast sandwich. Other tactics to consider include specials and value menus centered on breakfast.
2. Stretch Your Own Morning Day-Part
What about copying McDonald’s morning strategy? Offering breakfast items around the clock is inherently easier for c-stores—but that doesn’t mean you should overreact.
“Convenience stores needn’t necessarily rush to offer breakfast around the clock,” said McGuire. “A better approach is to expand breakfast hours into lunch and see how consumers respond to the change. Overall, extending breakfast times could be beneficial in the long-term, as 54% of consumers said they enjoy eating breakfast food at nontraditional times, up from 48% who said the same in 2013.”
3. Call Out Clean Ingredients
Take a cue from CPG manufacturers and emphasize “clean” ingredients such as natural, organic and GMO-free items. “These hot buzzwords connote quality and freshness with today’s consumers and are being sought out during all foodservice occasions,” said McGuire.
4. Look at Ethical Sourcing
Sourcing ethical ingredients (particularly, in the case of breakfast, cage-free eggs) is another top goal of the leading fast feeders. Just recently, Dunkin’ Donuts announced its plan to use only cage-free eggs by 2025, and McDonald’s has announced a similar strategy. The good news: With commitments from such heavy hitters, it should help develop a larger, more economical supply chain for cage-free eggs.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.