March 2, 2007
Breakfast Wars or Building daypart/increasing sales
Analysis of:
Fast-food rivals suit up for breakfast war | www.usatoday.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Implications: Building sales with existing labor
Staying in touch/compete with rivals
Retaining consumers while offering new menu items
Analysis: Let's get to the real point...this is a war that benefits all involved...unlike the 99 cent/value menu wars (although that may be in the near future with a more crowded and competitive market)
1) Starbucks:
The roll-outs in 7 major markets have been a success and why not! They increased sales, have kept their loyal customer base from straying to someone else for their breakfast sandwich/breakfast needs and introduced a an oven that allows them to
a) get product hot and fresh to the customer in a very timely manner (while preserving quality)
b) allows them to bring in pre-prepared product from central commissary (which requires no in store assembly)
c) the oven is not a one-trick pony...it is being used for the roll-out of their hot sandwich program, which extends day-part sales again
2) Burger King
While they have not enjoyed as much success as McD's with breakfast they have learned lessons from them & increased sales.
If you can increase day-part you make use of existing labor (some new labor is added) to increase sales it is a win-win. Also with the introduction of a quality coffee program you have an all day item with excellent margins & stay in step with your biggest competitor.
3) Wendy's
A little bit of a mystery in the making...while they failed the first time around...their R & D pipeline is very full...they should have learned from their time with Tim Horton's (who are a subject for a different analysis). Building daypart is essential to competing and stay in step as I said...the management team seems to have taken cue's from competitors and we will see...early roll-outs have been mixed but with more positives than negatives
4) Subway
This is the one I have doubts about...while I am all for developing day-part...I don't see someone who has and will have even more choices choosing a completely different destination that does not have a beverage program (coffee)
5) McDonald's
What can i say, they do it right! (to paraphrase) Great breakfast roll-out, ear to the ground as far as meeting customers needs and one of the best Coffee program roll-outs ever...kudos...let's see what comes...I think that with their upcoming beverage roll-out they will continue their success
Staying in touch/compete with rivals
Retaining consumers while offering new menu items
Analysis: Let's get to the real point...this is a war that benefits all involved...unlike the 99 cent/value menu wars (although that may be in the near future with a more crowded and competitive market)
1) Starbucks:
The roll-outs in 7 major markets have been a success and why not! They increased sales, have kept their loyal customer base from straying to someone else for their breakfast sandwich/breakfast needs and introduced a an oven that allows them to
a) get product hot and fresh to the customer in a very timely manner (while preserving quality)
b) allows them to bring in pre-prepared product from central commissary (which requires no in store assembly)
c) the oven is not a one-trick pony...it is being used for the roll-out of their hot sandwich program, which extends day-part sales again
2) Burger King
While they have not enjoyed as much success as McD's with breakfast they have learned lessons from them & increased sales.
If you can increase day-part you make use of existing labor (some new labor is added) to increase sales it is a win-win. Also with the introduction of a quality coffee program you have an all day item with excellent margins & stay in step with your biggest competitor.
3) Wendy's
A little bit of a mystery in the making...while they failed the first time around...their R & D pipeline is very full...they should have learned from their time with Tim Horton's (who are a subject for a different analysis). Building daypart is essential to competing and stay in step as I said...the management team seems to have taken cue's from competitors and we will see...early roll-outs have been mixed but with more positives than negatives
4) Subway
This is the one I have doubts about...while I am all for developing day-part...I don't see someone who has and will have even more choices choosing a completely different destination that does not have a beverage program (coffee)
5) McDonald's
What can i say, they do it right! (to paraphrase) Great breakfast roll-out, ear to the ground as far as meeting customers needs and one of the best Coffee program roll-outs ever...kudos...let's see what comes...I think that with their upcoming beverage roll-out they will continue their success
Report a Concern
More GLG News in
Consumer Goods & Services
Most Popular:
Source Article | Expert Analyses
Austrian struggles to find strategic partner
uk.biz.yahoo.com
Is Microsoft's Vision of Search Enough to Catch Google?
www.businessweek.com
Small businesses fighting to survive
www.msnbc.msn.com
General Motors pulls sponsorship of Oscars
www.msnbc.msn.com
Target to Put More Focus on Value
adage.com
Austrian struggles as deadline approaches
August 25, 2008
Is Target (TGT) Missing the Next Retail War?
August 21, 2008
Limited (LTD), GAP (GPS), The Same Problem and Equally Mediocre Results.
August 21, 2008
Not All Business Is In A Declilne Because of the Economy
August 20, 2008
Is Tiffany's Growth About to Unwind?
August 18, 2008

