1851

The <a href="https://1851franchise.com/breakfast-wars-dunkin-adds-breakfast-bowls-to-menu-2709816">breakfast wars of 2020</a> were put on hold this spring as the COVID-19 pandemic took hold of the restaurant industry. COVID-19 dashed any perception that breakfast would be the fastest-growing daypart of the restaurant industry this year — it’s instead become the opposite for many franchisors.Pre-COVID-19, historically low unemployment created more on-the-go commuters who were increasingly seeking out affordable breakfasts to accommodate their busy lifestyles. Breakfast and the morning snack category grew 5% during the last five years, and QSR chains like Wendy’s, Dunkin’, Burger King and McDonald’s were all fighting for a slice of the segment.Then COVID-19 hit, and breakfast was the easiest meal to convert back to home and therefore suffered the steepest transaction declines.“Breakfast is a habitual daypart. Once you disrupt that routine, it takes time to sort of rebuild it,” Chris Kempczinski, McDonald’s CEO, said during <a href="http://wsw.com/webcast/evercore9/mcd/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franchisors-can-save-the-breakfast-daypart-2714224" target="_blank" rel="nofollow">Evercore ISI’s Virtual Consumer &amp; Retail Summit webcast</a>.&nbsp;At the start of the pandemic, McDonald’s decreased its breakfast marketing since it was getting low returns on investment. <a href="https://www.cnbc.com/2020/03/25/mcdonalds-is-pulling-its-all-day-breakfast-menu-as-it-limits-options-amid-pandemic.html?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franchisors-can-save-the-breakfast-daypart-2714224" target="_blank" rel="nofollow">The company also temporarily pulled its all-day breakfast menu in March</a> and limited offerings to popular items to streamline operations.&nbsp;Taco Bell also had big plans for breakfast, rolling out a <a href="https://www.foodbeast.com/news/taco-bell-toasted-breakfast-burritos/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franchisors-can-save-the-breakfast-daypart-2714224" target="_blank" rel="nofollow">new Toasted Breakfast Burrito</a> menu just days before dining rooms started to close across the country. At Taco Bell, declining breakfast and late-night sales led to a high single-digit decline in same-store sales from quarter to quarter. In April, Taco Bell franchisees had the option to pause breakfast and just work hours that would be appropriate to optimize the business model, David Gibbs, Yum Brands CEO, <a href="https://www.fool.com/earnings/call-transcripts/2020/04/29/yum-brands-inc-yum-q1-2020-earnings-call-transcrip.aspx?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franchisors-can-save-the-breakfast-daypart-2714224" target="_blank" rel="nofollow">said during an April earnings call with investors</a>.&nbsp;Wendy’s breakfast actually performed well in May and made up about 8% of U.S. systemwide sales, <a href="https://d18rn0p25nwr6d.cloudfront.net/CIK-0000030697/8e13de36-64d6-4466-bd61-2429e04a5f6c.pdf?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franchisors-can-save-the-breakfast-daypart-2714224" target="_blank" rel="nofollow">according to a press release</a>. What likely helped was its social media and TV marketing efforts before the pandemic, which increased customer awareness by 50% for the daypart. The strength of Wendy’s breakfast daypart shows that recovery for the daypart could be within reach.As recovery continues, smaller franchisors may actually have an advantage. Family-dining chain, <a href="https://www.firstwatch.com/?utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franchisors-can-save-the-breakfast-daypart-2714224" target="_blank" rel="nofollow">First Watch,</a> is suburban-heavy in its franchise locations, giving it an edge over quick-service giants that customers normally frequent on their morning commute or in major cities with public transportation. The brand has seen steady sales, and 18 new units open, since the pandemic hit the U.S. in March of this year. That can be attributed to loyal customers and an investment in technology, <a href="https://www.nrn.com/family-dining/don-t-believe-headlines-breakfast-segment-not-failing-says-first-watch-ceo-chris?NL=NRN-011&amp%3BIssue=NRN-011_20200824_NRN-011_801&amp%3Bsfvc4enews=42&amp%3Bcl=article_1&amp%3Butm_rid=CPG06000018567070&amp%3Butm_campaign=40582&amp%3Butm_medium=email&amp%3Belq2=cf56435b117a4ef882beac2790cc31b6&utm_source=1851franchise.com&utm_medium=article&utm_campaign=how-franchisors-can-save-the-breakfast-daypart-2714224" target="_blank" rel="nofollow">CEO Chris Tomasso told NRN</a>.&nbsp;That suburban demographic could be the key to moving forward. Interest in breakfast is expected to vary market by market, and instead of doing a national push, franchisors will need to take a regional approach depending on how and where people return back to their normal patterns. For example, McDonald’s plans to add new products later in the year, but will likely limit them to certain markets.&nbsp;Whether it be increased national marketing, strategic regional menu rollouts or a combination of both, franchisors will need to be smart if they hope to save the breakfast daypart.

How Franchisors Can Save the Breakfast Daypart

1851 Franchise

With fewer commuters and rising unemployment, the pandemic hit the morning daypart hard and halted the breakfast wars of 2020.

how-franchisors-can-save-the-breakfast-daypart

Biscuit Belly Franchising

Photo of Chuck Schnatter inside Biscuit Belly location

Why a Former Papa Johns Executive Invested in Biscuit Belly Franchising

franchise-chuck-schnatter

Busy Bee Jumpers

Busy Bee Jumpers Closes 2025 on a High: Three Franchisees Signed in First 30 Days, Expansion Momentum Building

busy-bee-jumpers-franchise-growth-2025

CapitalSpring

What Makes a Successful Franchise Investment Partner: Understanding What To Look For  

What Makes a Successful Franchise Investment Partner: Understanding What To Look For Beyond the Check

franchise-investment-partner-capitalspring

Wild Bill's Craft Beverage Company

Fueled by Freedom: How This Veteran Franchisee Is Expanding Wild Bill’s Across New England

wild-bills-veteran-franchisee-expansion-new-england

Melting Pot

Photo of Melting Pot table with chocolate fondue and "Cheers to 50 Years" plate

Melting Pot Evolution Sets the Stage for the Next 50 Years

evolution-design

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Development Website Builder

Franchise Resources

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

1851 Login

GROWTH CLUB LOGIN

facebook

instagram

twitter

linkedin

youtube

California Pizza Kitchen’s Sale Is the Latest in the Era of PE-Backed Turnarounds in Franchising

california-pizza-kitchens-sale-is-the-latest-in-the-era-of-pe-backed-turnarounds-in-franchising

Buying a fitness franchise, people exercising

Boutique vs. Big Box Gym Franchises: Which Offers Best ROI in the $7 Billion Fitness Market?

buy-fitness-franchise-boutique-big-box-comparison

Pieology Pizza Enters Chapter 11 Following Costly Bid To Save Struggling Stores

pieology-pizza-files-chapter-11-bankruptcy

CNBC: McDonald’s Will Assess if Franchisees Are Offering Value for Customers Under New Standards

mcdonalds-franchise-standards-value-metric

How AI Is Transforming Restaurant Operations and Franchises

ai-impact-restaurants-franchises-human-centric-technology

AI-related job cuts, October U.S. job cuts, American job cut record

AI-Fueled Layoffs Reshape the U.S. Job Market — And Highlight Franchising’s Resilience

ai-job-cuts-franchising-path-forward

Paris Baguette Welcomes Zac Sulma as New Chief Operating Officer

new-coo-zac-sulma

Photo of group of dogs standing together in day care facility

Top Pet Boarding and Day Care Franchise Opportunities for 2025

top-pet-boarding-daycare-franchises

Do You Qualify? A Look at the Chick-fil-A Franchise Requirements

do-you-qualify-a-look-at-the-chick-fil-a-franchise-requirements

The Top 15 Pet Wellness and Vet Care Franchises for 2025

top-pet-wellness-franchise-opportunities

A Practical Playbook: Who To Call First When Franchising Your Business

franchising-your-business-who-to-call-first

The 15 Top Pet Grooming Franchises To Consider for 2025

the-15-top-pet-grooming-franchises-to-consider

image of jerome hanway from right at home Las Cruces, New Mexico 1851 franchise franchisee spotlight

Jerome Hanway Is Building His Right at Home Franchise Around His Mission To Serve

right-at-home-franchise-las-cruces-jerome-hanway

How Franchisors Can Save the Breakfast Daypart

MORE STORIES LIKE THIS