Other QSRs Catching Up to McDonald's in Lucrative Breakfast Daypart

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Other QSRs Catching Up to McDonald's in Lucrative Breakfast Daypart


OAK BROOK, Ill. – Dominating market share during the breakfast daypart has been a top goal for McDonald's Corp. for several years. However, other quick-service restaurants (QSRs) are catching up, according to a new Forbes report.

A recent survey by The NPD Group of 27,000 people found that 41 percent of respondents eat two or more meals in the morning -- something McDonald's has capitalized on, the report noted. The second-largest worldwide QSR, behind Subway, has expanded its efforts to appeal to breakfast customers by introducing Fruit & Nut Oatmeal in 2011 and new bakery items, such as muffins, cheese Danish and banana breads, this year.

McDonald's, though, is not the only one recognizing how lucrative breakfast can be for the bottom line. Also taking notice are Dunkin' Brands -- parent of Dunkin' Donuts -- and Taco Bell. In fact, Dunkin' Donuts last month introduced its Angus Steak & Egg sandwich to cater to the growing number of breakfast consumers.

Taco Bell, previously known as a lunch and dinner fast-food restaurant, introduced a breakfast menu, named First Meal, in January at 750 locations. Forbes said the move was a no-brainer for Taco Bell since not only is the QSR going after a fast-growing market segment, but it also has little to lose because rental and occupancy costs remain fixed at Taco Bell stores, no matter what hours it operates.

Dunkin' and Taco Bell are also among other QSRs catching on to something McDonald's has long known: that breakfast offerings should not only be served during early morning hours, but extended beyond traditional time periods. Other QSRs are opening as early as 5 a.m. and serving breakfast as late as 11 a.m., Forbes reported.