Wednesday, June 30, 2010

Good Morning? Marketing Fast-Food Breakfasts

Seems that without the breakfast business, the fast-food industry would barely be growing. NPD reports that breakfast sales accounted for 60% of fast-food's traffic growth.

McDonald's dollar breakfast menu and the popular McCafe coffees are helping to bring customers in during the morning rush. Word of mouth about low-priced senior coffees probably helps, too.

Burger King has dollar breakfasts and more; Jack in the Box and Taco Bell are beating the bushes for breakfast business; and Subway has breakfast sandwiches featuring cage-free eggs (from hens not crowded into cages).

But isn't high unemployment cutting into breakfast sales? The Washington Post says yes, and I think it has a point. Fewer people commuting + lower disposable income = recipe for lower breakfast sales in areas hard-hit by unemployment. How much profit can there be in dollar menu items?

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