Breakfast Restaurants Market Report

Breakfast Restaurants Market Analysis, Market Size, Regional Outlook, Competitive Strategies And Forecast 2016 To 2024

Format: PDF  |  Report ID: 162

The global breakfast restaurant market is expected to grow substantially owing to the rise in the number of breakfast restaurants in response to the increasing consumer demand. Fast food and on-the-go menu items are also expected to fuel demand over the coming years. Although the industry does not face any restrictions, there could be challenges in obtaining a return on investment if not strategically performed.

The market is consumer dependent, and companies in this business chose creative offerings to grow their businesses such as offering regional specialty and limited time menus to lure customers. Restaurant owners have realized that consumers usually are in a morning rush, and are striving to provide timely delivery of food. Quick service restaurants account for the maximum share in the global breakfast market. Taco Bell, a quick service restaurant, and a subsidiary of Yum!. Brands now offer breakfast menu across various markets globally. McDonald’s, a leading quick service restaurant also offers breakfast in selected regions globally and observes as high as 15% revenue generation from the breakfast menu items.

The rising concern for healthy diet promotes breakfast as the most important meal of the day, leading to the massive adoption of breakfast by people in the developed countries such as the U.S. and the UK. These regions constitute over 40% restaurants offering breakfast to customers, providing ample growth opportunities. The industry is also witnessing a significant rise of restaurants beginning to offer breakfast beside the regular lunch and dinner menu. It provides stronger revenue for the restaurants, adding to their stability. Restaurants also realized that a wider menu option with all day breakfast menu availability acts as a growth factor leading to increased sales. The availability of freshly brewed coffee and a variety of fruit juices is also anticipated to propel demand owing to the growing demand for smoothies and fruit juices for the breakfast regime. Globalization has led to the migration of the workforce with mixed cultures creating a demand for regional food. Breakfast restaurants offering various cuisines observe healthy growth in sales. Another factor fueling demand is relatively low price of breakfast as compared to other meals of the day.

Beside healthy menu requirements, breakfast culture is observing the advent of non-conventional menu items such as burgers. Consumers, opting for such menu items create a niche market for restaurants. Many customers perceive breakfast as a socializing opportunity, incentivizing restaurant owners to offer comfortable seating and breakfast menu availability at later hours for convenience.

Consumer expectation from food joints varies, ranging from convenience to comfort, creating different opportunities for growth. Restaurants may segregate depending on whether they serve quick food or offer a fine-dine experience. While the fast food industry has witnessed substantial growth over the last five years, restaurant owners can develop fine-dine breakfast restaurants for targeted customers offering a different dining experience. Availability of a wider choice of beverage and healthy menu items is anticipated to increase profitability and growth.

The industry is saturated with restaurant chains such as Taco Bell and White Castle but offers an excellent opportunity for independent owners to grow owing to the availability of customizing menu items to suit one’s needs. However, these independent restaurants may face challenges due to unstandardized preparation methods, from the restaurant chains which usually train the staff on the standard preparation methods, leading to inconsistencies in the quality of the food which is likely to impede demand.

The cost-benefit analysis of including breakfast menu can provide growth opportunities if there is a reasonable demand from the consumers. However, the investment in infrastructure and the constant requirement of raw materials for preparation may pose a challenge to the market. Consumer eating behavior would directly impact the breakfast restaurant business; although incorporation of lunch and dinner menu items in the breakfast could provide substantial growth opportunities. The industry is anticipated to witness robust growth with the ongoing trends in restaurant breakfast market. However, consumer behavior will dictate whether or not these restaurants stay in business.

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