THE KEYNOTE REPORT BREAKFAST

MenuTrends Keynote | Breakfast 2014 1Contact Datassential: 312-655-0594

BREAKFASTTHE KEYNOTE REPORT

Brian [email protected]

July 2014MENUTRENDS KEYNOTE

SAMPLE SLIDESget the full report: 312-655-0594 or [email protected]

MenuTrends Keynote | Breakfast 2014 2Contact Datassential: 312-655-0594Datassential’s Keynote series of reports provide

concise analysis on key industry issues. Our calendar

of topics is based on feedback from the foodservice

community.

Is there a topic you’d like us to feature? Let us

know and we’ll try to schedule it.

For more details, please contact Brian Darr at: 312-655-0594 or [email protected]

The SUPERMARKET PREPARED FOODS report provides essential information for any foodservice suppliers, distributors, or operators that focus on the prepared foods landscape. Most notably, the findings will provide insight into prepared foods away from home as a business opportunity, consumer purchase behaviors, and grocery prepared foods trends. The report findings can help prioritize marketing, communication, and new product initiatives – whether it’s menu ideation, ingredient innovations, or unique / differentiated offerings.

Datassential’s GPO REPORT features feedback from operators, manufacturers, and distributors to form a 360-degree view of the market. GPOs are establishing a stronghold in the industry and this report will give suppliers the tools necessary to continue to maximize their own businesses given this change to the foodservice landscape. Rather than focusing on the downsides of GPOs, the data in this report will allow suppliers to develop tactics that instead create new opportunities for their businesses.

The HOW OPERATORS BUY report provides several critical insights into how operators physically go about discovering and purchasing products. Most notably, the findings point to significant missed opportunities to educate and influence operators as they discover, evaluate, and purchase products. The data can also help prioritize marketing initiatives to best reflect how operators discover new products – whether it’s food shows, DSR training, or online activity.

The GPO Challenge

How Operators Buy

Supermarket Prepared Foods

K-12 Foodservice Update

PULSE

The K-12 FOODSERVICE UPDATE report brings you up to speed on the rapidly-changing school foodservice landscape that takes into account the 2012/2013 school year. Insights include operator successes and challenges adapting to new legislation brought on by the Healthy Hunger-Free Kids Act; supplier opportunities in areas operators have unmet needs; parent perspectives on school foodservice; at-home eating habits that influence school choices; and regulation guidelines.

The PULSE report offers a new level of insight that’s utterly unique to foodservice by tracking what operators think and do across more than 100 key metrics. PULSE provides annual feedback from 1,500 purchase decision makers and covers restaurant and on-site channels. Topics covered include operator suppliers & sources; menu objectives and areas of interest; kitchen dynamics;preferred resources & media behavior/awareness; profitability & cost breakdown; and unmet operator needs. Plug into the industry’s most thorough set of foodservice metrics and stay ahead of the curve on sentiment, behavior, and future intent.


OBJECTIVES &

METHODOLOGY

BREAKFAST

CONSUMERS

KEY INSIGHTSBREAKFAST

LANDSCAPEMEGATRENDS

7 24

341610

CONTENTS

DRIVERS &

BARRIERS (FOR CONSUMPTION

MENU DETAIL

48 62

EGG DISHES contents

BREAKFAST

SANDWICHESBAKERY &

STARCHES98 109

RETAIL

OPPORTUNITIES

APPENDIX:FOOD SNAPSHOTS

127

87

122

APPENDIX: SUPPLEMENTAL DATA

142

OPERATORS

162

click to jump to a section


EXHIBIT GUIDELandscape

Breakfast Penetration by Segment

Breakfast Menu Average Sizes

Top Breakfast Items Overall

Breakfast Foods Eaten

Breakfast Beverages Consumed

Breakfast Timeline

The Consumers

Last Breakfast Occasion

Breakfast: When Consumed

Breakfast Frequency: AH vs. AFH Breakfast

AFH: Where Purchased

AFH Selection Criteria

Breakfast AH: Prep Methods

MegaTrends

MAC: Breakfast MegaTrends

MegaTrends Interest Rating, by Generation

Ethnic Influences

Veg. & Protein Smoothies

Unique Sandwich Carriers

Elevated Comfort Foods

Premium

Healthy/BFY

Mediterranean

Monster/Mini Sandwiches

MAC: Breakfast Foods/Flavors

Seasonal Foods & Flavors

17

18

19

20-21

22

23

25-26

27-28,148

29

30

31-32

33

36

37,159

38

39

40

41

42

43

44

45

46

47

Drivers & Barriers:

Importance: Home Drivers

Importance: Home Drivers by Generation

Performance: Home Drivers

Importance vs. Performance

AH Breakfast Barriers (aided)

AH Breakfast Drivers (unaided)

AH Breakfast Drivers, by Generation

Top 10 AFH Breakfast Criteria

AFH Breakfast Barriers, by Generation

AFH Breakfast Drivers (unaided)

AFH Breakfast Motivators & Drivers, by Generation

Breakfast Dishes: QSR vs. FSR

Breakfast Entrée Avg. Prices

C-Store Breakfast Introductions

Menu Detail

A truly Great Breakfast starts with…

America’s Favorite Breakfast Foods

Top Breakfast Items by Segment

Top Breakfast Items by Region

Fastest Growing Breakfast Entrées

Healthy Terms: QSR vs. FSR

Trending Flavors at Breakfast

Trending Ethnic Flavors

Breakfast Trends: QSR vs. FSR

Breakfast Trends: Independents vs. Chains

Top Menued Beverages by Segment

Breakfast Beverage Avg. Prices

49,149

150

50, 151

51,153-155,

156-158

52

53

54, 152

55

56,160

57

58, 161

59

60

61

63

64

65

66

67

68

69

70

71

72

73

74


EXHIBIT GUIDEMenu Detail

Interest Rating: Breakfast Varieties

Awareness & Appeal

Interest by Gender & Generation

Interest by Income & Ethnicity

Interest in Unique Dishes

Awareness & Appeal



Egg Dishes

Top Ingredients & Toppings

Top Ingredients by Segment

Interest Rating: Egg Dishes

Awareness & Appeal



Ingredients: Region Index

Trending Egg Dish Flavors

Egg Dishes: Avg. Price

Bakery & Starches

Top Bakery Items by Segment

Top Bakery Items by Region

Trending Bakery & Starch Flavors

Interest Rating: Bakery & Breads

Awareness & Appeal



75-76

77-78

79-80

81-82

83

84

85

86

88-89

90

91

92

93

94

95

96

97

109

110

112

113

114

115

116

Bakery, Starches and Potatoes

Top Ingredients & Toppings

Interest Rating: Breakfast Potatoes

Awareness & Appeal



Retail Opportunities

Retail Protein Innovations

Retail Sauce/Topping/Flavor Innovations

Retail Starch Innovations

Beverage Innovations

Appendix

Food Snapshots

Spicy Ethnic Flavors

Alcohol Infusions

Savory Pastries

Kale

Honey Butter

Pulled Pork

Gluten Free

Premium Cheeses

Waffle Breakfast Sandwiches

Aioli

Chipotle

Upscale Breads

Pesto

Chicken

117

118

119

120

121

123

124

125

126

128

129

130

131

132

133

134

135

136

137

138

139

140

141


EXHIBIT GUIDEAppendix

Supplemental Data

Share of Stomach: AH vs. AFH

Avg. Share of Visitations by Rest. Type

Breakfast Consumer Profile

AFH Dining Habits

AFH Dining Habits by Age

Breakfast Operators

Breakfast Operator Profile

Purchase Formats: Starches, Breads, Pastries

Brand Importance: Starches, Breads, Pastries

Preferred Brands: Muffins (unaided)

Preferred Brands: Bagels (unaided)

Preferred Brands: Pancake & Waffle Products

(unaided)

Purchase Formats: Proteins

Brand Importance: Proteins

Preferred Brands: Bacon (unaided)

Preferred Brands: Turkey Sausage (unaided)

Preferred Brands: Pork Sausage (unaided)

Egg Products Used

Brand Importance: Egg Products

Preferred Brands: Shell Eggs (unaided)

Preferred Brands: Liquid Eggs (unaided)

143

144

145

146

147

163

164

165

166

167

168

169

170

171

172

173

174

175

176

177


Soup Varieties: Detailed

Profiles

7

SAMPLE SLIDES


Source: Datassential Firefly

Nearly two-thirds of all restaurants offer breakfast.

MENU PENETRATION: of all restaurants, % that offer breakfast

74%

59%63%

52%

4%

63%

QSR FastCasual

Midscale Casual FineDining

ALL

Breakfast Penetration by Segment(% of restaurants serving breakfast)

QSR establishments are the most

likely to serve breakfast, offering a

wide range of to-go dishes and

beverages.


15

20

25

30

35

40

45

2005 2006 2007 2008 2009 2010 2011 2012 2013

QSR Midscale Casual Fine Dining ALL

Breakfast Menu Average Sizes(Average number of dishes and beverages)

Midscale: 39.0 +8%

Total US: 26.6 +1%

Casual: 24.9 -1%

QSR: 18.1 +4%

Fine Dining: 28.3 -6%

Average Menu

Size

8-Year

Growth

Source: Datassential MenuTrends

Midscale restaurants have the most

extensive breakfast menus by far.


Breakfast Foods Eaten

n=1222QA2 (II): Think back to the very last time you had breakfast. What type of breakfast was it? For consumers who have had breakfast within the past 2 weeks.

RANK ITEM % WHO HAVE EATEN (past 2 weeks) AT HOMEAWAY FROM

HOME

1 Cold cereal 94% 6%

2 Eggs 77% 23%

3 Breakfast Sandwich 52% 48%

4 Bacon 73% 27%

5 Sausage 66% 34%

6 Yogurt / yogurt parfait 86% 14%

7 Oatmeal 90% 10%

8 Fruit / fruit cup 85% 15%

9 Pancakes 65% 35%

10 Bagel 81% 19%

11 Breakfast Potatoes 53% 47%

12 Omelet 67% 33%

13 French Toast 77% 23%

14 Waffles 75% 25%

15 Muffin 73% 27%

16 Smoothie / shake 79% 21%

23%

23%

11%

11%

10%

10%

10%

9%

9%

9%

7%

6%

6%

6%

5%

4%

Cold cereal and eggs were the most consumed breakfast foods. Given that consumers

indicated high time sensitivity during breakfast hours, more labor-intensive choices

lean toward being away-from-home choices.


RANK ITEM % WHO DRANK (past 2 weeks) AT HOMEAWAY FROM

HOME

1 Hot brewed coffee 84% 16%

2 Juice 80% 20%

3 Milk 90% 10%

4 Hot tea 81% 19%

5 Fountain soft drinks 74% 26%

6 Water 88% 12%

7 Iced tea 67% 33%

8 Hot specialty coffee beverage 64% 36%

9 Smoothie / Protein shake 78% 22%

10 Hot chocolate 75% 25%

11 Iced coffee 59% 41%

12 Milkshake 68% 32%

13 Iced specialty coffee beverage 69% 31%

14 Slushie, frozen soda, fruit beverage 46% 54%

15 Frozen specialty coffee beverage 64% 36%

Breakfast Beverages Consumed

n=1222QA2a (II): Again, thinking back to the last time you had breakfast, what type of beverage did you drink?

Brewed coffee is the breakfast beverage of choice. Away-from-home beverages may

require specialized equipment.

41%

25%

17%

9%

8%

8%

6%

5%

5%

5%

4%

3%

3%

2%

2%


2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Chick-Fil-A introduces

breakfast menu and

coffee

BREAKFAST IN TIME

Papa John’s

tests

breakfast

pizzas

Wendy’s new

breakfast menu is

introduced

Burger King debuts the

Enormous Omelet

Sandwich – contrary to

the industry’s shift

towards healthy items

Starbucks

introduces new

sandwiches

Taco Bell’s new

breakfast menu

features waffle

tacos and AM

Crunchwraps

Wendy’s

releases

breakfast for

the third time

Dunkin Donuts

goes outside of

the box with their

Donut Breakfast

Sandwich

McDonald’s, Burger

King, and Chick-Fil-A

now have oatmeal

Starbucks starts

serving oatmeal

Upscale diners run

by fine dining chefs

begin appearing

Gluten free

cereals start

becoming

popular

Chipotle tests

breakfast

burritos and

tacos at

Dulles

Washington

Airport

Subway debuts

Breakfast Footlong

McDonald’s expands

coffee line with flavored

iced coffees; lattes &

mochas follow in 2008

Dunkin’s

DDSmart menu

with egg whites

flatbreads <300

calories

Starbucks revives their

breakfast sandwiches

with “artisan breakfast

sandwiches”

Burger King’s

new breakfast

menu features

flavored coffee


Away From Home Selection Criteria (Top 2)

n=1280QX1 (II): Generally speaking, how important are the following when deciding WHERE TO GO and WHAT TO ORDER when getting food/beverage AWAY FROM HOME? 10-point scale, Top 2

When dining away from home, consumers select a location based on great tasting

food and restaurant cleanliness. Freshness, consistency, quality, and value are significantly

more important to consumers than lowest prices.

74%

70%

69%

66%

63%

63%

60%

59%

53%

51%

47%

43%

41%

40%

39%

37%

37%

37%

Great taste

Cleanliness of the place

Food is fresh

Consistent food quality

High quality food

Good value for the price

Affordable

Quality of the ingredients used

Food is made to order

Friendly service

Conveniently located

Good portion sizes

Menu is organized & easy to read

Very low prices

Food is attractively presented

Lots of variety on the menu

Discounts & special deals

Foods I don't eat at home


Made or

assembled

from

scratch

Refrigerated

or pre-

packaged

Frozen

breakfast

that was

heated up

65% of home breakfasts 17% of home

breakfasts 9% of home breakfasts

Other:

includes

ready-to-eat

9%of home breakfasts

QA4 (II): For this last breakfast that you had FROM HOME, was it… n=1012

Preparation Methods: Breakfast At Home

Breakfast consumers prefer making or assembling breakfast from scratch.


Fine Dining

Chef-Casual

Food Trucks

Upper-Casual

Fast-Casual

Casual Independents

Ethnic Independents

QSR

C&U

Lodging

Casual Chains

B&I

Midscale

Grocery Deli

C-Stores

K-12

Menu Adoption

Cycle

THE DATASSENTIAL MENU ADOPTION CYCLE (MAC)F&B trends follow a predictable life cycle, based on their availability in key away from home and at-home segments.

For the past 30 years, the market sweet spot has been in the PROLIFERATION stage. But times are changing, and

we predict that the new sweet spot will shift to ADOPTION in the years ahead.

Ethnic markets

Farmers marketsSpecialty grocers

Supermarkets

Club stores

Specialty Retailers

Dollar Stores

Discount Grocers

Drug Stores


INCEPTION ADOPTION PROLIFERATION UBIQUITY

MENU ADOPTION CYCLE

BREAKFAST MEGA-TRENDS

Mediterranean

Monster &

Mini Sandwiches

Unique Breakfast

Sandwich Carriers

Elevated

Comfort Foods

Vegetable &

Protein Smoothies

Premium

Ethnic

Influences

Healthy/

Better-For-You


QC7 (II): Described are some breakfast trends you might not already be familiar with. For each, please indicate how interested you are in trying that type of breakfast trend/item. 5-point scale, top 2 (very interested and interested)

Interest Rating: MegaTrends (Top 2)

n=1280

33%

38%

40%

41%

43%

47%

48%

50%

50%

53%

Vegetable/Protein Smoothies

Mediterranean

Breakfast Food Trucks

Ethnic Influences

Unique Breakfast Sandwich Carriers

Premium Ingredients

Monster & Mini Sandwiches

Healthy/Better-For-You

Single Item Focus Restaurants

Elevated Comfort Foods

Consumers are strongly loyal to traditional breakfast favorites, although over half are interested in unique concepts, such as upscale comfort foods, single focus restaurants, and healthy offerings.


Ethnic ingredients trending in

PM dayparts are working their

way onto breakfast menus.

Influences from Mexican and Asian

cuisines in particular are being

incorporated into sandwiches and

familiar dishes like hashes.

INCEPTION: Ethnic Influences

Source: Datassential MenuTrends

Notable

Flavors

RESTAURANT ITEM DESCRIPTION

BANGERS & LACE HASH two eggs, chorizo, red pepper, jalapeno, onion, potato, cotija.

EAST COAST GRILLANCHO-MOLASSES

GRILLED SKIRT STEAK

with chimichurri, cheesy scrambled eggs, potato-poblano hash,

griddled corn bread and guava butter.

FREEFOODS NYCEL BASQUE EGG

SANDWICHESspicy eggs, manchego, piquillo peppers.

THE DARK HORSE

INNKALUA BENEDICT

Hawaiian-style smoked pork, Sriracha hollandaise and

poached eggs on toasted Hawaiian buns.

WHIP-IN PARLOUR

CAFÉSTEAK AND EGGS

5 ounce sirloin breakfast steak, 2 fried eggs w/fries &

your choice of chutney (cilantro or pepper or tomato).

Chipotle

Poblano

Habanero

Cotija

Manchego

Chimichurri

Sriracha

Chutney

Kimchi

Yuzu

BREAKFAST

ON THE MENU


Breakfast Attributes: Importance vs. Performance (Top box)

importance

perf

orm

ance

HIGH

INTENSITY/LO

W FREQUENCY

NEED STATES

LOW INTENSITY/HIGH

FREQUENCY NEED

STATES

LOW INTENSITY/LOW

FREQUENCY NEED

STATES

CODE CONCEPT NAME

A Healthy

B Quick and easy to prepare

C No mess to clean

D Portable, easy to eat on the go

ENatural, organic, or local

ingredients

F My preferred brands

G Time I have to cook / eat

H Eating gourmet breakfast items

I Scratch preparation

J Kid-friendly foods

KMeets specific dietary

needs/restrictions

L Cost

A

B

C

DE

F

G

H

I

J

K

L

Less critical attributes : These are breakfast

attributes that are generally less important

overall.

Upscale, natural, and kid-friendly foods are less

important to consumers as is portability.

Consumers’ breakfast needs are generally

aligned with the breakfasts they choose.

With time being a factor, quick and easy

meals are critical as are healthy options and

preferred food brands.


n=1280QB4 (II): Please complete this thought: “Other than lower cost, I would be more likely to have breakfast AT HOME if…”

Breakfast Drivers:

At Home (unaided)

“…everyone could sit down at the same time to eat breakfast. Everyone is

on a different schedule so they just take want they want to eat when they’re

ready for it.”

“…I were cooking breakfast for more than just myself. My family leaves

before I have time to prepare a full breakfast, so I just have a bowl of cereal or

fruit most days during the week.”

“I’m always more likely to have breakfast at home since I know what

ingredients I’m using and control over what we eat.”

“…I did not have to cook it or clean up the mess of if it was easier to fix in

the microwave.”

“…I could make everything that I crave from fast food restaurants from scratch

without it taking hours to prepare.”

“I can easily make breakfast I want at home. Mostly we go out for breakfast

to eat something that takes a bit more effort or to get something that I don’t

really know how to make.”

“…there was more variety of prepared items (like breakfast sandwiches)

available in the grocery store. Even convenience stores have a selection of

prepared breakfasts that are so inexpensive it’s not worth the time and mess

of cooking from scratch.”

“…I had more time in the mornings. We always make breakfast on

weekends at home, but weekdays are had getting the family and myself out

the door on time.”

“I crave breakfast foods, but I prefer it at different times during the day and

eat them in the afternoon or early evening.”


GET THE FULL REPORT312-655-0594 or [email protected]


WE KNOW FOOD

for more information, contact BRIAN DARR at

312-655-0594 or [email protected]

DATASSENTIAL is your best source for food industry insights – from the

latest menu trends to the products shoppers want at the grocery store.


MenuTrendsDATASSENTIAL INNOVATION TOOLS

10xlarger than other menu

and flavor databases

15 millionmenu examples from

more than 100k menus

LTOsnew and limited-time

items updated weekly

The industry’s most accurate

system for identifying, tracking,

and predicting flavor trends

FS

CPG


LTO AnalyticsDATASSENTIAL INNOVATION TOOLS

benchmarkdetailed activity reports

for each chain versus its

competitive set

historictrack over 100 months of

LTO activity, dating back

to 2006.

weeklynew items and LTOs are

updated each week

On-demand analysis of new

item and LTO activity at

hundreds of restaurant chains

FS

CPG


FLAVOR+DATASSENTIAL INNOVATION TOOLS Fill your retail innovation process

with an ongoing stream of consumer-

tested new product ideas

INNOVATION FUNNEL. Flavor+ is the first step for meaningful,

process-drive innovation. New product-flavor combinations are

assessed each period, prioritized by market opportunity.

EARLY DETECTION SYSTEM. Trends start first at restaurants

and today are transitioning to retail faster than ever. Flavor+

utilizes the Menu Adoption Cycle to detect early stage trends

and then tracks them over time.

Appeal

Uniqueness

Excitement

Frequency

Brand fit

METRICS

FS

CPG

Each period, emerging flavors are

identified through MenuTrends and

the Menu Adoption Cycle.

Those flavors and are then paired

with your specific product categories

and tested with consumers.

Legacy and new flavors are tracked

longitudinally, with full reporting by

shopper segments and demography.


FireflyDATASSENTIAL SALES TOOLS

censusphone-validated profiles

for every FS location in

the US – restaurants, on-

site, and retail food.

analyticsanalyze local markets,

brand performance, and

more than 10,000 chains

sell better generate target lists by

segment, menu type,

operational attributes, or

even what’s on the menu

The first true universal operator database,

verified by 5 million phone calls each year

FS

CPG


ConsumerDATASSENTIAL CUSTOM RESEARCH

Segmentation

Concept testing

Proprietary flavor trackers

Category / AAU

Brand strength

Market entry analysis

Customer satisfaction

TURF analysis

Price optimization

Extraordinary eater and

shopper insights that reveal

the “why” behind the “what”

FS

CPG

foodservicetarget users of specific

restaurants, c-stores, and

other segments.

retail / cpgsurvey shoppers by store

type or specific brand.

global reachexecute research in more

than 70 countries, with full

translation capability.


OperatorDATASSENTIAL CUSTOM RESEARCH Expert insights from the

industry’s largest panel of

foodservice decision makers

Concept testing

Category management

Category AAU

Brand tracking

In-store testing

Market entry analysis

Package testing

FS

CPG

40k panelistsby far the industry’s

largest operator panel,

with 40,000 purchase

decision makers

all segmentsreach operators from all

segments – LSR, FSR,

lodging, healthcare, K-12,

C&U, B&I, and more.

true feedbacka panel built exclusively

for research, balanced

and unbiased.


MONTHLY

QUARTERLY

BI-MONTHLY

ON THE MENU keeps you up-to-date, covering six key trends every month, each with consumer data, menu examples, and expert commentary. Plus, we gather and examine the hottest LTOs from major chains across the country.

TIPS brings you deep analysis of trends at different stages along the menu adoption cycle. Each issue is packed with extensive research, foodservice/menu availability, media coverage, and both consumer AND operator data.

WORLD BITES bring you foods, flavors, and trends from around the globe. Each issue covers 10+ authentic dishes from a single cuisine, with background, menu examples, and extensive consumer data, including market demand.

CREATIVE CONCEPTS is your monthly, in-depth look at the latest trends in restaurant and foodservice concepts. Each issue includes representative establishments, complete with extensive overviews and menu examples.

DINE AROUND takes you on a trendspotting tour of the country. Each month we focus on one city, with an overview of the city and region’s food culture; in-depth operator and manufacturer profiles; menu examples; and consumer data .

INTERNATIONAL CONCEPTS, launching in 2014, brings you chain activity from around the globe, highlighting up-and-coming concepts, trends, and ethnic flavors. Each issue covers six chains in a single market, complete with menu examples.

MONTHLY MONTHLY MONTHLY

CALL MAEVE WEBSTER AT 312-655-0596 OR EMAIL AT [email protected]

TRENDSPOTTINGSTAY IN-THE-KNOW ON THE LATEST TRENDS WITH

REPORTS FROM


a Datassentialsolution

Contact Brian Darr:312-655-0594

[email protected]

THE KEYNOTE REPORT BREAKFAST

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