Commercial restaurant visits for morning meals are up four percent in the last 12 months, driven by Tuesday and Thursday visits, reports data insights firm Circana in a consumer report released Thursday. The increased traffic is likely affected by the fact that, on Tuesday and Thursday, workers are more likely to commute to the office.
The key driver of restaurant growth, the heavy restaurant breakfast buyer, accounts for only 20 percent of U.S. shoppers but makes up nearly 60 percent of restaurant breakfast sales. Typically, male consumers aged 45-54 with a household income of over $100,000 per year are heavy restaurant breakfast buyers, and they spend five times more on restaurant breakfasts than the average consumer and often seek out caffeinated beverages and convenient, on-the-go breakfast items.
Although this demographic is driving commercial restaurant traffic and sales, with a lean toward a household size of five or more people, their spending on CPG breakfast foods remains in line with other consumers. Their CPG preferences also mimic their restaurant purchases, favoring ready-to-drink coffee, and grab-and-go items like pastries, donuts, and bakery items.
“In-store CPG sales and restaurant purchases are highly intertwined, and viewing each separately prevents a full comprehension of consumer behaviors, and limits the ability to address consumer needs,” said Patty Altman, EVP of consumer and shopper insights at Circana, in a statement. “Understanding the interaction between these purchases is critical to determine how each impacts the other.”
While younger consumers aged 18-24 purchase fewer restaurant breakfasts each year than any other age cohort, they have increased breakfast visits since last year.
Although heavy restaurant breakfast buyers presumably use restaurant breakfasts to treat themselves on their way to the office during the week, stopping at gourmet coffee and tea chains, younger consumers are still looking to treat themselves, ordering specialty iced and blended drinks, but gravitating toward lower-price channels, such as quick-service burgers.
“As gourmet coffee players continue to add locations, up 8 percent versus a year ago, we are seeing long-term implications and growth opportunities emerge for CPG retailers and brands based on our Complete Consumer insights,” said Tim Fires, president of foodservice at Circana, in a statement. “The opportunity to capture the heavy restaurant breakfast buyer in-store and deliver on their needs is through RTD specialty caffeinated drinks, with formats and flavors that are available in restaurants, along with convenient grab-and-go breakfast items like donuts, pastries, and baked goods that don’t require utensils.”
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