Winning at Breakfast - Capitalize on the Changing Breakfast Landscape - Sponsored by: Kellogg's ...

Page created by Joe Park
 
CONTINUE READING
Winning at Breakfast - Capitalize on the Changing Breakfast Landscape - Sponsored by: Kellogg's ...
@NRNonline

Winning at Breakfast - Capitalize on
the Changing Breakfast Landscape
Sponsored by:
Winning at Breakfast - Capitalize on the Changing Breakfast Landscape - Sponsored by: Kellogg's ...
Speakers                            @NRNonline

Chef Mario Garcia Chef Michael Wilson Kathryn Fenner
   Executive Chef   Regional Culinary Director    Principal
   Hilton Chicago           Aramark              Technomic
Winning at Breakfast - Capitalize on the Changing Breakfast Landscape - Sponsored by: Kellogg's ...
Winning at
Breakfast
Capitalize on the Changing Breakfast Landscape
Winning at Breakfast - Capitalize on the Changing Breakfast Landscape - Sponsored by: Kellogg's ...
Breakfast was
the daypart
hardest hit by
the pandemic

Image source: Shutterstock

© 2022 Technomic, Inc.       4
Winning at Breakfast - Capitalize on the Changing Breakfast Landscape - Sponsored by: Kellogg's ...
As the daypart returns,     Overall, consumers are       Younger consumers
   consumers are more           focusing on taste,       use is growing; we must
    likely to enjoy it off-    health, convenience          understand their
           premise            and value, in that order    challenges and what
                                                         appeals to them to drive
                                                                   traffic

© 2022 Technomic, Inc.                                                              5
Winning at Breakfast - Capitalize on the Changing Breakfast Landscape - Sponsored by: Kellogg's ...
COMPARED TO BEFORE THE COVID-19 PANDEMIC YEAR, ARE YOU
                                                            ORDERING BREAKFAST AWAY FROM HOME...?

                                                                                                   40%

                                                  The same amount                     27%
Overall, consumers are
                                                                                             34%
ordering breakfast
slightly less frequently
than before the                                                                              34%
pandemic                                                                                                       Overall
However, younger                                    Less frequently                   28%                      Gen Zers
consumers report a net                                                                                         Millennials
                                                                                       29%
increase in foodservice
breakfast orders
                                                                                     26%

                                                    More frequently                                      45%

Base: 1,000 consumers
                                                                                               37%
Source: Technomic 2021 Away-From-Home Breakfast
Assessment

© 2022 Technomic, Inc.                                                                                                       6
Winning at Breakfast - Capitalize on the Changing Breakfast Landscape - Sponsored by: Kellogg's ...
IN THE COMING YEAR, HOW LIKELY IS IT THAT YOU WILL
                                                          INCREASE HOW OFTEN YOU PURCHASE BREAKFAST AWAY FROM
                                                                                   HOME?

                                                        Overall          24%                  26%

                                                      Gen Zers            30%                       37%
                                                                                                                   67% of Gen
                                                                                                                          Zers

Potential exists to
increase breakfast                                   Millennials              35%                   30%               65% of
traffic and sales in the                                                                                          millennials

coming year
                                                      Gen Xers           26%                  25%

                                                  Baby boomers     11%         20%

                                                                   4%
                                                       Matures          13%

Base: 1,000 consumers
Source: Technomic 2021 Away-From-Home Breakfast                                 Very likely     Somewhat likely
Assessment

© 2022 Technomic, Inc.                                                                                                           7
Winning at Breakfast - Capitalize on the Changing Breakfast Landscape - Sponsored by: Kellogg's ...
How have you seen
the breakfast
occasion change?

What are you doing to drive
traffic in the a.m.?
Image source: Shutterstock

© 2022 Technomic, Inc.        8
Winning at Breakfast - Capitalize on the Changing Breakfast Landscape - Sponsored by: Kellogg's ...
“WHEN PURCHASING BREAKFAST AWAY FROM HOME, I AM MOST
                                                                          FREQUENTLY EATING…”

                                                                                                                          33%
                                                        In the restaurant/cafe/retail                                                        Down from
                                                                                                            23%                             47% in 2019
                                                               establishment
                                                                                                                    28%

                                                                                                              24%          Up from 22%
                                                     In my car/public transportation                        22%                  in 2019

Dine-in still leads at                                                                                              28%
breakfast, but younger
                                                                                                             24%
consumers shift the                               At home, having brought the food                                          Up from 15%
                                                                                                                                  in 2019
                                                                                                               27%
occasion to off-premise                            back to my house or apartment
                                                                                                     17%

                                                                                               12%
                                                         At my desk at school/work                    18%
                                                                                                     17%
                                                                                                                              Overall
                                                                                        6%
                                                                                                                              Gen Zers
                                                   While walking to my destination           9%
Base: 1,000 consumers                                                                         10%                             Millennials
Source: Technomic 2021 Away-From-Home Breakfast
Assessment

© 2022 Technomic, Inc.                                                                                                                             9
Winning at Breakfast - Capitalize on the Changing Breakfast Landscape - Sponsored by: Kellogg's ...
O F F - P R E M I S E W I L L B E I N C R E AS I N G LY V I TAL

                                                       IN THE COMING YEAR, DO YOU EXPECT TO ORDER BREAKFAST
                                                       FOR ___ MORE OFTEN, THE SAME OR LESS OFTEN THAN NOW?

The COVID-19
pandemic accelerated                              Delivery           37%                         43%            20%
the trend.
Consumers are eating
at home more often,
even for breakfast
purchased away from
home.                                             Takeout            36%                          49%            14%

Base: 1,000 consumers
Source: Technomic 2021 Away-From-Home Breakfast                   More often   The same amount     Less often
Assessment

© 2022 Technomic, Inc.                                                                                                 10
WHY DON’T YOU EAT/ORDER BREAKFAST AWAY FROM HOME?
                                                                             SELECT ALL THAT APPLY.

                                                                                                                          48%
                                                    I prefer to make breakfast at home
                                                                                                                   34%
Younger consumers are                                                                                          32%
                                                                         Too expensive                                     Down from
less likely to make                                                                                           30%         41% in 2019

breakfast at home
                                                                                                   13%
                                                  I don’t like typical breakfast offerings
● But cost and lack of                                                                               16%     Down from
  time, portability are                                                                                     15% in 2019
                                                                                               11%
  deterrents to breakfast                                     I don’t have enough time
                                                                                                           25%                          Overall
  away from home for
                                                                                               10%                                      18-34
  18- to 34-year-olds                                 No healthy options are available
                                                                                                12%
● Highlighting grab-and-
  go offerings is key                                 I work at home and it’s easier to        10%
                                                              prepare at home                   11%
                                                                                              9%
                                                               It’s hard to eat on the go
                                                                                                    15%
                                                                                              7%
Base: 1,518 consumers who don’t order breakfast   It’s hard to find items that fit my diet
away from home                                                                               5%
Source: Technomic 2021 Away-From-Home Breakfast
Assessment

© 2022 Technomic, Inc.                                                                                                                            11
What grab-an-go
items appeal at
breakfast?
Has it changed over the last
year?
Image source: Shutterstock

© 2022 Technomic, Inc.         12
VALUE DEALS ARE
                                                 BECOMING MORE
                                                IMPORTANT TO ME

                                                  64%
                       Importance up
                       vs. 49% in
                       November 2021

Base: Approx. 570 consumers per statement
Source: Technomic Q1 2022 Consumer & Operator
Outlook Report
Image source: Shutterstock

© 2022 Technomic, Inc.                                            13
CONSUMER PRICE THRESHOLDS FOR WEEKDAY BREAKFAST**

                                                                                      $12.10
                                                                                                    Up
                                                      Breakfast
                                                                                                    42%
                                                                             $8.50
Consumers say a 27%
increase in prices will
cause them to visit less                                                                 $13.80
often for breakfast*                                     Lunch                                          Up
Value propositions will                                                                                 23%
                                                                                     $11.20
be updated as prices
rise

                                                                                                  $17.70
                                                        Dinner                                                Up
                                                                                               $15.60         13%

*Base: 1,000 consumers
**Base: 1,000 (2021) and 1,500 (2019) consumers
Source: Technomic 2021 Away-From-Home Breakfast
Assessment                                                            2021   2019

© 2022 Technomic, Inc.                                                                                              14
Value doesn’t have to
mean a small price point
Best In Class LTO

Big Farmhouse BreakFEAST
IHOP
Get four types of meat, including two smoked sausage links, two
strips of hickory-smoked bacon, two pork sausage links and two
pieces of thick-cut ham, as well as two eggs your way, crispy hash
browns, two fluffy buttermilk pancakes and toast

 Purchase                   Uniqueness:     Draw:             Craveability:
 Intent: 153                79              118               122
 22% VERY LIKELY            18% OF          30% OF            30% OF
 TO PURCHASE                POTENTIAL       POTENTIAL         POTENTIAL
                            PURCHASERS      PURCHASERS        PURCHASERS
                            CONSIDER VERY   MUCH MORE         WOULD
                            UNIQUE          LIKELY TO VISIT   DEFINITELY
                                            FOR               CRAVE

Source: Technomic Ignite Menu                                                 Image Source: IHOP website

© 2022 Technomic, Inc.                                                                               15
WHY DO YOU CHOOSE TO SKIP BREAKFAST?

                                                                                                                                       55%
                                                                 I’m typically not hungry                                                        Down from
                                                                                                                                     50%            59% in
                                                                                                                                                      2019

                                                                                                                     36%
                                                       I don’t have time to eat breakfast
                                                                                                                       40%
For those that skip
                                                  I do intermittent fasting and it’s during         19%
breakfast, health and                                        my fasting period
                                                                                                                     Up from 12%
                                                                                                    19%                    in 2019
timing is a factor
● Healthy options                                                                                   17%                                      Overall
                                                                          To save money
  important                                                                                           22%                                    18-34
● Offering all-day breakfast
  will appeal                                                                                   11%
                                                                             Diet reasons
                                                                                                  14%

                                                                                               10%
                                                       No healthy options are available                   Up from 7%
                                                                                                               in 2019
                                                                                                 13%

                                                                                              7%
                                                  I don’t like breakfast foods/beverages
Base: 997 consumers who skip breakfast                                                         8%
Source: Technomic 2021 Away-From-Home Breakfast
Assessment

© 2022 Technomic, Inc.                                                                                                                                 16
% OF CONSUMERS WHO AGREE

                                                                                                                           68%

                                                   I am interested in restaurants serving all-
                                                                                                                           69%
                                                             day breakfast menus

                                                                                                                             76%
Strong demand exists
for all-day breakfast
It can help drive traffic
later in the day                                                                                                     59%

                                                  If more restaurants offered breakfast items
                                                   on their lunch and supper menus, I would                                 73%
                                                             eat out more frequently

                                                                                                                             76%

Base: 1,000 consumers
Source: Technomic 2021 Away-From-Home Breakfast
Assessment                                                                      Overall     Gen Zers   Millennials

© 2022 Technomic, Inc.                                                                                                             17
% OF CONSUMERS WHO AGREE

                                                     It is important for me to eat a nutritious
                                                                                                              63%
                                                                      breakfast

A nutritious breakfast
remains important
But don’t forget flavor                              I’m not willing to give up good taste for
                                                                                                         55%
                                                      nutrition at breakfast away from home

                                                  I am interested in a healthier/reduced-fat
                                                                                                        50%
                                                  version of my traditional breakfast staples

Base: Varies by statement
Source: Technomic 2021 Away-From-Home Breakfast
Assessment

© 2022 Technomic, Inc.                                                                                              18
WHICH ATTRIBUTES DO YOU TYPICALLY LOOK FOR WHEN PURCHASING
                                                           BREAKFAST AT A RESTAURANT/FOODSERVICE?**

                                                                        High in protein                         24%

Consumers look for a                                                            Natural                   19%
variety of health
attributes for breakfast                                                           Real               18%
menus
                                                                            Low-sugar                17%

46%                                                                   Provides energy               16%

of consumers would like                                               Low-salt/sodium           15%
restaurants to offer
more vegetarian or                                    Contains no artificial ingredients        15%
vegan breakfast foods
or beverages*                                                              High in fiber        15%

                                                                           Housemade           14%
*Base: 370 consumers
**Base: 1,000 consumers
**Note: 21% of consumers reported “none of the
above”                                                                        Seasonal        13%
Source: Technomic 2021 Away-From-Home Breakfast
Assessment

© 2022 Technomic, Inc.                                                                                                19
How are you providing
healthy options for
your customers?
What are your customers
requesting?
Image source: Shutterstock

© 2022 Technomic, Inc.       20
Sustainability Can                                                                              30%
                                                                                                of consumers overall, and
Drive Visits                                                                                    40% of Gen Zers, would be
                                                                PEOPLE                          more likely to visit
                                                                                                restaurants that make an
                                                                ● Community involvement
                                                                                                effort to be sustainable*
                                                                  and development
                                                                ● Charitable giving
                                                                ● Hunger reduction
                                                                ● Employee diversity
                                                                ● Equal rights

PLANET                                                                                    PRODUCT
● Reducing carbon                                                                         ● Reduction of antibiotics
  footprint                                                                               ● Clean label
● Reducing water pollution                                                                ● Transparency
● Broad environmental                                                                     ● Ingredient safety
  protection                                                                              ● Local growing
● Climate change

*Source: Technomic Consumer Trend Report 2020 US Generational

 © 2022 Technomic, Inc.
CONSUMER INTEREST IN INNOVATIVE BREAKFAST OFFERINGS

The right innovation can
drive purchases and
                                                         Overall            44%              10%        17%
traffic
● Traditional favorites with
  small twists for most
● Millennials more interested
  in unique experiences than
  average
                                                      Gen Zers                 51%                 9%     16%

56%
of consumers are more
likely to order a
                                                     Millennials             45%               12%        25%
breakfast item if it is
only offered for a limited
time
                                                     3—a small twist on a traditional food/beverage
Base: 1,000 consumers                                4
Source: Technomic 2021 Away-From-Home Breakfast
Assessment
                                                     5—completely new, unique menu item I have not had before

© 2022 Technomic, Inc.                                                                                          22
F L AV O R L I F E C Y C LE

Breakfast flavors poised
for growth:
Dessert-inspired                                                                                                                                                                               Proven Favorites (Quick-Service and
                                                                                                                                                                                               Midscale Chains): Concepts that focus on
● Schmear It, a food truck                                                                                                                                                                     flavors proven to have wide appeal for many
                                                                                                                                                                                               different palates (e.g., Wendy’s, Denny’s and
  located in Philadelphia,                                                                                                                                                                     Subway)

  offers a S’mores Bagel                                                                                                                      Adopt the Popular (Fast-Casual and Traditional Casual-Dining Chains): Concepts that

● Champs Diner in Brooklyn,                                                                                                                   incorporate what is piquing consumer interest and gaining acceptance on menus (e.g., Corner
                                                                                                                                              Bakery and Zaxby’s)
  N.Y., menus Cookie Dough
                                                                                                Ahead of the Curve (Higher-End, Casual-Dining Chains): Chef-inspired concepts that watch
  Pancakes with housemade                                                                       for innovation from independents (e.g., Bonefish Grill, The Melting Pot and Seasons 52)
  chocolate chip cookie dough
                                              Innovators (Independents and Smaller Fine-Dining Chains): Chef-driven restaurants
                                              leading the way in new uses of flavors and ingredients (e.g., The Slanted Door in San
                                              Francisco and Au Cheval in Chicago)
Global
● Vietnamese breakfast                        Truffles 7.0 %                                    Vanilla Bean 10.0 %                           Sesame 24.0 %                                    Coffee 82.6 %
                                              Red Velvet 7.0 %                                  Milk Chocolate 10.0 %                         Brownie 20.0 %                                   Bacon 78.1 %
  options at Chicago-based
                                              Pina Colada 7.0 %                                 Chocolate Peanut Butter 10.0 %                Basil 16.8 %                                     Chocolate 74.1 %
  food truck Saucy Porka such                 Vietnamese 4.7 %                                  Oaxacan 10.0 %                                Sea Salt 16.0 %                                  Orange 72.1 %
  as its Egg and Chihuahua                    Brie 4.7 %                                        Gruyere 10.0 %                                Pesto 14.4 %                                     Strawberry 65.2 %
                                              Fennel 4.7 %                                      Creme Brulee 5.0 %                            Sesame Seed 12.8 %                               Apple 64.0 %
  cheese Banh Mi
                                              Colby 4.7 %                                       Smores 5.0 %                                  Poppy Seed 12.0 %                                Blueberry 58.3 %
                                              Graham Cracker 4.7 %                              Moroccan Mint 5.0 %                           Cinnamon Raisin 12.0 %                           Mexican 56.3 %
                                              Peanut 4.7 %                                      Cotija 5.0 %                                  Tart 11.2 %                                      Cheddar 55.5 %
                                              Cookie Dough 4.7 %                                Grenadine 5.0 %                               Lemon-Ginger 11.2 %                              Sugar 54.3 %

Source: Technomic Ignite Menu data, Q3 2021   Introduction                                     Growth                                         Mainstream                                      Mature
© 2022 Technomic, Inc.                                                                                                                                                                                                                         23
W H AT AR E W E S E E I N G ?

Asian Influence
Asian flavors, ingredients
                                                                             Caribou Coffee
and specialties                 85°C Bakery Cafe                           BOUsted Green Tea
                                 Dong Po Pastry                               Lemonade

                                  Image Source: 85°C Bakery Cafe website      Image Source: Caribou Coffee Facebook

© 2022 Technomic, Inc.                                                                                          24
W H AT ’ S T R E N D I N G : B AC K TO B AS I C S , S I M P LE T W I S T S

Purchase Intent
                                                                                                                                                  Image Source: Perkins Restaurant & Bakery website
Country Fried Steak And                                      Campfire Mocha
Eggs
                                                             BREAKFAST NONALCOHOL                        Top 10
                                                             BEVERAGE                                    LTO in
BREAKFAST ENTREE
                                                                                                         2021*
Menu example from                                            Menu example from
Perkins Restaurant & Bakery                                  Caribou Coffee

Lightly breaded steak topped with our                        Real chocolate melted into steamed
country-style cream gravy. Served with                       milk and combined with our rich
two eggs, a choice of hash browns or                         espresso and toasted marshmallow
breakfast potatoes and a choice of                           flavor. Topped with whipped cream,
three buttermilk pancakes, fresh baked                       mini marshmallows and chocolate chips
Mammoth Muffin or buttered toast                             Score: 20% (top box)
                                                                                                                                                   Image Source: Caribou Coffee Postmates page
Score: 24% (top box)                                         Index: 176
Index: 166

Note: Percentage=very craveable; Item name and description are from each company; Index score based on top-box response within daypart/mealpart
*Note: By purchase intent
Source: Technomic Ignite Menu

© 2022 Technomic, Inc.                                                                                                                                                                        25
W H AT ’ S T R E N D I N G | D E S S E R T F L AV O R S

Uniqueness
                                                                                                                                                  Image Source: Shutterstock
Pina Colada Muffin Top                                       Napoleon Temptation
                                                                                                           Top 10
BREAKFAST SIDE                                               BREAKFAST ENTREE                              LTO in
                                                                                                           2021*
Menu example from                                            Menu example from
Kneaders Bakery & Cafe                                       Another Broken Egg Cafe
Pina colada with bits of pineapple and                       Stack of one buttermilk cake, French
coconut flakes                                               toast, Belgian waffle and cinnamon roll
                                                             French toast topped with fresh berries,
Score: 36%
                                                             rum butter sauce and powdered sugar.
Index: 154                                                   Served with two eggs any style and
                                                             baked bacon or housemade sausage
                                                             patties
                                                                                                                                                  Image Source: Another Broken Egg Cafe website
                                                             Score: 38%
                                                             Index: 155

Note: Percentage=very craveable; Item name and description are from each company; Index score based on top-box response within daypart/mealpart
*Note: By uniqueness
Source: Technomic Ignite Menu

© 2022 Technomic, Inc.                                                                                                                                                                            26
W H AT ’ S T R E N D I N G | H E ALT H

Draw                                           Top 10
                                               LTO in
                                               2021*
Blueberry Matcha Latte                                       Vegan Breakfast Sandwich
BREAKFAST NONALCOHOL                                         BREAKFAST ENTREE
BEVERAGE
                                                             Menu example from
Menu example from                                            Starbucks                                                                            Image Source: Dunkin’ website
Dunkin’                                                      Made with mung bean-based egg, a
A delightfully delicious combination of                      plant-based sausage patty and dairy-
our sweetened matcha green tea                               free cheese on an English muffin
powder blend with blueberry flavor and
                                                             Score: Score: 32%
guests’ choice of milk, including
nondairy alternatives like oat and                           Index: 113
almond milks
Score: 41%
Index: 154

                                                                                                                                                  Image Source: Starbucks Instagram
Note: Percentage=very craveable; Item name and description are from each company; Index score based on top-box response within daypart/mealpart
*Note: By draw
Source: Technomic Ignite Menu

© 2022 Technomic, Inc.                                                                                                                                                                27
W H AT ’ S T R E N D I N G | C O M FO R T, H E ALT H

Craveability
Oat Milk Kicker                                              Apple Pie-Stuffed French
BREAKFAST NONALCOHOL                                         Toast
BEVERAGE                                                     BREAKFAST ENTREE                                                                     Image Source: Dutch Bros. Coffee website

Menu example from                          Top 10            Menu example from
Dutch Bros. Coffee                         LTO in
                                           2021*             Silver Diner
Irish cream oat milk latte
                                                             Cinnamon sugar-crusted, layered
Score: 38%                                                   vanilla creme, roasted apples,
Index: 158                                                   pomegranate seeds and salted caramel
                                                             drizzle
                                                             Score: 25%
                                                             Index: 109
                                                             71% Top Two Box PURCHASE
                                                             INTENT FOR GEN Z
                                                                                                                                                  Image Source: Silver Diner website

Note: Percentage=very craveable; Item name and description are from each company; Index score based on top-box response within daypart/mealpart
*Note: By craveability
Source: Technomic Ignite Menu

© 2022 Technomic, Inc.                                                                                                                                                                       28
W H AT AR E W E S E E I N G ?

Brand Callouts,                                                           Krispy Kreme
                                                                       Mini Caramel Cookie
Portable Minis                      Carl’s Jr.                          Doughnut topped
                                Froot Loops Mini                       with Twix Cookie Bar
                                     Donut                                    pieces

                                       Image Source: CKE Restaurants         Image Source: Krispy Kreme release

                                 52% Top Two Box                          60% Top Two Box
                                 Purchase Intent for                      Purchase Intent for
                                     Millennials                              Millennials

© 2022 Technomic, Inc.                                                                                      29
What types of LTO
or menu innovation
are you having
success with at
breakfast?
Image source: Shutterstock

© 2022 Technomic, Inc.       30
FUTURE FOCUS

Gen Z and                    Make it portable              Dress up the              Boost the variety
millennials                  Handheld
                                                           classics                  of healthy
Offer opportunity at                                       Twists on familiar most
                                                                                     options
                             Clean eating
breakfast                                                  important at breakfast    Be transparent,
                             Beverages                                               communicate health and
Expect an increase in off-                                 Comfort rules             sustainability benefits
premise occasions            Look to minis and global
                                                           Healthy halo helpful      Plant-based is table stakes
                             street food for inspiration
                                                           Brands can be powerful    Don’t forget flavor

© 2022 Technomic, Inc.                                                                                         31
Thank you!

© 2022 Technomic, Inc.                32
Q&A                            @NRNonline

                                       Chef Mario Garcia
                                       Executive Chef
                                       Hilton Chicago

   Ask Questions                       Chef Michael Wilson
    To ask our presenters              Regional Culinary Director
          questions,                   Aramark
simply type them in the bottom
   of your console and click
            Submit.
                                        Kathryn Fenner
                                        Principal
                                        Technomic
Thank you for attending!
                                special thanks to

                           for sponsoring this webinar

© 2022 Technomic, Inc.
You can also read