Breakfast Opportunities for Supermarkets

Articles
July 07, 2010

Breakfast Opportunities for Supermarkets

Although the National Restaurant Association says that the restaurant industry outlook is optimistic, data for sales in May showed another month of declining sales.

Although the National Restaurant Association says that the restaurant industry outlook is optimistic, data for sales in May showed another month of declining sales. Up from 41 percent in April, the NRN reported that 46 percent of restaurant owners said their same-store sales had declined.
 
In March, Supermarket Guru reported findings from the 2010 consumer panel where fewer than five percent of consumers said they are dining out multiple times a week - a slowdown felt across all income tiers. Thirty-three percent said they dine out less than once a month. Four percent said they never dine out.

Even seemingly cheaper, fast food establishments are taking a hit. Compared with just a year ago, the percentage of consumers 'never' visiting a fast food joint jumped by four points to 22 percent. Overall, six out of 10 consumers are avoiding fast food operations this year.
 
What could be keeping some of these restaurants afloat? Breakfast.
 
Current research from the NPD Group shows that over the past five years, breakfast offerings brought in nearly 60 percent of restaurants' traffic growth. And with some fast food restaurants now offering healthier options to their menus, there is even more opportunity to attract hungry, on the go Americans in the morning hours.
 
Supermarkets may also find opportunity here in breakfast offerings. As The Lempert Report reported recently in an article titled, Date Night: Dinner & Grocery Shopping?, "With media attention focused on healthy choices and American over-consumption, now may well be the time to refocus efforts on in-store dining."
 
But in-store dining doesn't have to mean dinner or even lunch. By offering fresh and healthier breakfast items in a casual dining, coffee shop environment, supermarkets are offering not only an economical, convenient meal, but also a place for members of the community to gather or interact over morning coffee and a bagel. And chances are, those stopping in for breakfast may want to check a few items off their shopping list while they are there.