It’s Been a Big Year for Breakfast

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Despite tepid market growth over the last 12 months, it’s been a big year for breakfast in Canadian foodservice. This notion is supported by the fact that market giants such as McDonald’s and A&W have both rolled out all-day breakfast offerings in their Canadian restaurants in Q1 of 2017.

According to recent market data from The NPD Group, Canadian breakfast sales (including a.m. snacks) grew eight per cent to $5.6 billion in 2016, outpacing growth in the U.S., where sales grew five per cent over 2015 to $41 billion.

But why is there such a strong appetite for breakfast north of the border? First and foremost, Canadians love their coffee. In fact, that fondness for coffee led Canadians to consume more than three billion servings of the hot beverage at foodservice in 2016 — a trend that bodes well for breakfast sales since many items available during the breakfast daypart tend to pair well with a cup of joe.

While many of these items are considered standard breakfast fare by most, there is no denying Canadians have developed a unique penchant for them, which has led operators to increase their availability in an attempt to offset traffic and sales declines at lunch and dinner. This makes sense, despite the fact the average eater check at breakfast, which stands at $4.95, may not be as robust as that of lunch ($7.43) or dinner ($8.84). Ultimately, it’s all about focusing on a daypart that is growing, as opposed to those — such as lunch and dinner — that have shown weakness in recent years.

In the end, the success or failure of these all-day breakfast offerings will be measured by their ability to drive sales and attract consumers from competitive offerings. And while it will take some time to determine how Canadians take to these offerings, one thing is certain — the data seems to suggest it’s a winning strategy.

Volume 49, Number 12
Written By Robert Carter

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