September 26, 2022
(press release)
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Restaurants in the US that are struggling to stay afloat should consider selling breakfasts, according to GlobalData, which notes that the breakfast category is the only one not seeing decline. The leading data and analytics company found that 43% of Americans now report eating out less frequently*, but could be tempted to grab a breakfast if it was convenient and affordable. Breakfast sales benefit from 44% of US customers returning to office work According to a consumer survey by GlobalData, 44%* of US consumers are now working from the office more often, if not full time, in Q3 2022. This return to work is a key driver of breakfast category growth. Hannah Cleland, Foodservice Analyst at GlobalData, comments: “With such a large portion of the population regularly making a commute, it is unsurprising that breakfast sales have remained steady. Foodservice brands needing a revenue boost should start taking advantage of this opportunity, whether or not it falls under their usual offering. Consumer spending habits in response to the cost-of-living crisis have been nuanced, but it is clear that a small breakfast treat is still being incorporated into many people’s budgets.” Coffee and tea shops see high footfall but low spend GlobalData’s Q3 2022 survey also revealed that 44% of customers in the US were high spenders at coffee and tea shops compared to only 35% at quick-service or fast-food restaurants*. While some coffee and tea shop brands may be able to capitalize on high spending habits by offering more premium menus, high spending does not necessarily indicate a trend towards more expensive items overall. Value-focused operators in particular should remain wary of raising prices as 72% of American survey responders are regularly switching to cheaper stores or outlets in general*. Cleland adds: “Consumers are continuing to regularly order out for breakfast, but many are trading down or looking for the most affordable deal. The bottom line is that, when convenience-focused, breakfast is a bankable consumption occasion to keep attracting customers to outlets. Diversifying into this category will help businesses to tick over, but brands should be shrewd with premium and value positionings.” * GlobalData’s Q3 global consumer survey 2022, over 20,000 respondents surveyed across 42 countries every quarter with 500 being from the US, high spending based on “high” and “very high responses combined, regularly switching to cheaper stores based on “start doing”, “continue doing”, “doing more frequently” responses combined
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