Recognizing that a good cup of coffee is a critical breakfast component, the Dublin, Ohio-based chain has also recently partnered with P & G to debut a proprietary 100-percent Arabica Wendy’s Custom Bean by Folgers Gourmet Selections blend.
Getting back into breakfast is a wise strategic move for Wendy’s because “with lunch experiencing only modest-growth and dinner flat, if not a little down” throughout the quick-service segment, the morning meal offers probably the best potential for growth, says Dennis Lombardi, executive vice president of foodservice strategies at WD Partners consulting firm. However, Lombardi cautions, the habitual nature of the breakfast daypart requires a certain level of commitment and patience on the part of the operators to allow traffic to build.
“It took McDonald’s several years to position itself as a breakfast destination,” Lombardi says. “And there wasn’t even much competition when they did it.”
He also adds that, when it comes to breakfast, consumers aren’t likely to give every brand an even break.
“They might not be as open to a breakfast menu from In–N-Out Burger or KFC,” he says. “But there’s no reason to believe that Wendy’s is in that category and, in fact, the chain’s now positive same-store sales seem to indicate that the menu moves the company is making are the right ones.”
According to Wendy’s 2006 annual report, the company’s total revenues of $2.4 billion were “approximately flat” when compared with 2005. However, the report goes on to say that the company ended the year with seven consecutive months and three-straight quarters of positive same-store sales.
Although Bertini says that Wendy’s plans to offer its breakfast items only during the morning daypart, some industry experts are advising otherwise. In a survey published in April, The NPD Group research company revealed that 44 percent of breakfast food servings at major full-service family-style chain restaurants were eaten “beyond traditional morning meal times,” compared to only 7 percent at quick-service restaurants.
“While consumers looking for a breakfast fix at quick-service restaurants after the morning mealtime have limited options, the NPD data reveal that, when breakfast items are available, consumers often order them, particularly during lunch,” says NPD Group restaurant analyst Bonnie Riggs.
For quick-service operators, she says, “offering breakfast foods throughout the day could help increase visits from existing customers. It could also attract new customers.” People are likely to order a breakfast item 25 percent of the time for lunch or dinner, says Darrin Tristano, managing director of information services at Technomic, Inc.
Breakfast sandwiches, which represent nearly half (46 percent) of morning meal orders, are probably the best bet for all-day sales, according to Riggs.