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March 1, 2007

Don't Forget Hardee's!

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.
Analysis By:
Glenn Postell, Partner & OperatorGlenn Postell
Partner & Operator, Bear Group, Inc.
Implications: It is interesting to see that Wendy's, Subway, and even Starbucks are entering the breakfast arena. BK has been there for a while. Wendy's had breakfast in several locations many years ago. All the while, we at Hardee's continue to do what others would like-grow our breakfast business through made from scratch biscuits, periodic infusions of new products, and an emphasis on product quality. Of course, everyone would like to beat McD's. Hardee's actually does pretty good at breakfast side by side with McD's.
 

Analysis: Hardee's has been know for having a great breakfast for many years. Since it's introduction in the 1970's, breakfast was our foundation for many years until the introduction of the Thickburger. Now, Hardee's can truly say that we have  a great biscuit breakfast as well as great burgers!

Wendy's has been know for having salads, good burgers, and a 99 cents menu for a long time. This is what they are known for. Subway has been known for sub sandwiches, Starbucks for outstanding coffees, BK for burgers and croissants. It is difficult, but certainly not impossible for a business to venture into a new concept in an attempt to gain market share. Certainly all of these companies are capable of succeeding in the area of breakfast. Adding and or expanding the breakfast concept is the challenge, both from a product standpoint as well as the extra variable costs of labor, product, and utilities. Hitting on a product that stands out is everyone's dream and desire in the restaurant business. Becoming that choice of destination rather the choice of convenience will determine the successes into the breakfast foray.

Other Analyses of the Same Source Article:
Breakfast Wars or Building daypart/increasing sales
March 2, 2007, Author: Jeffrey Segal, VP Culinary Research & Concept Development, Ops., Riese Restaurants

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