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

Busy Bee Jumpers

Busy Bee Jumpers Buzzes into Franchising: Three New Franchisees Signed in First 30 Days

busy-bee-jumpers-buzzes-into-franchising-three-new-franchisees-signed-in-first-30-days

Fitness Premier

Fitness Premier 24/7 Clubs Reports Strong Midyear Momentum 

Fitness Premier 24/7 Clubs Reports Strong Midyear Momentum with Revenue Gains, Record Membership, and Strategic Expansion

fitness-premier-mid-year-growth-2025

Woodhouse Spas

image of a woodhouse spa franchise buildings exterior 

Woodhouse Spas Continues Strong Momentum With Double-Digit Growth in Q2

woodhouse-spas-q2-2025-growth-expansion

Layne's Chicken Fingers

Layne's Chicken Fingers-Mountain-State-Devo-June-2025

Layne’s Chicken Fingers Eyes Expansion in Mountain States

laynes-chicken-fingers-franchise-mountain-states-expansion

ServiceMaster Restore

ServiceMaster Restore Powers Into the Second Half of 2025 With Growth and Purpose-Driven Impact

ServiceMaster Restore Powers Into the Second Half of 2025 With Strong Growth and Purpose-Driven Impact

servicemaster-restore-powers-into-the-second-half-of-2025-with-strong-growth-and-purpose-driven-impact

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

What ALEC-Laffer's Report Means for Franchising

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

Wendy's CEO Kirk Tanner Steps Down - Breaking News - 1851 Franchise

Wendy’s CEO Kirk Tanner Steps Down Amid Challenges, Leaving Franchisees Facing Uncertainty

wendys-ceo-transition-kirk-tanner-franchisee-uncertainty

"Come in, We're OPEN" sign against abstract background

Small Business Optimism Dips, Raising Concerns for Franchise Owners

small-business-optimism-dips-raising-concerns-for-franchise-owners

Photo of Roof Scientist truck and trailer

Roof Scientist Expands Into Northern Indianapolis as Entrepreneur Dale Speckman Launches New Business in Fishers

roof-scientist-expands-into-northern-indianapolis

Image of Donald Trump pointing with red stripes in the background

August 1 Tariff Deadline Is Said to Have ‘No Extensions’: What This Could Mean for Franchises

august-1-tariff-deadline-franchise-impact

What June’s Jobs Report Means for the Franchise Industry

what-junes-jobs-report-means-for-the-franchise-industry

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores - Agg - 1851 Franchise

Hooters Leans Into Franchising With Closure of 30 Company-Owned Stores

hooters-franchise-model-company-owned-closures

Drone Delivery Takes Flight in QSR: The Future of Franchise Operations?

drone-delivery-takes-flight-in-qsr-the-future-of-franchise-operations

The Ultimate Guide to Selling Franchises: How To Create a Strong Incentive

how-to-build-strong-incentives-to-attract-prospective-franchisees

Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

From Corporate Careers to Community Roots: Kansas Couple Revitalizes Local Childcare With Children’s Lighthouse

kansas-couple-opens-childrens-lighthouse-gardner-olathe

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery 

From Prescriptions to Pastries: Kari Khandelwal Creates a Comforting Community Bakery in Overland Park, Kansas

paris-baguette-franchise-overland-park-khandelwal

Blending Tech, Hospitality and Health Care: How Three Women From Different Worlds Came Together to Build a Paris Baguette Franchise

paris-baguette-franchise-flower-mound-texas

How Franchisors Can Save the Breakfast Daypart

MORE STORIES LIKE THIS