At least one survey confirms that a decision by McDonald’s Corp. to test all-day breakfast could help boost business.
The survey by YouGov Brand Index found that 42 percent of frequent quick-service restaurant breakfast eaters would visit McDonald’s for their next meal, putting the chain in second place behind Subway.
The results, according to YouGov, suggested that consumers of quick-service breakfast are more than willing to go to McDonald’s at times of day besides the morning — which means the chain is wise to consider enticing that group with breakfast items after 10:30 a.m.
“When you have the second highest percentage of fast-food breakfast eaters considering making their next fast-food stop at your place, you have to seriously consider taking advantage of that desire,” said Drew Kerr, spokesman for YouGov Brand Index. “These people are committed fast-food breakfast eaters. If they’d rather go to your store to eat ahead of just about every one of your rivals, that’s practically a captive audience.”
The branding research firm also suggested that other chains would be wise to consider breakfast items at other times of day. After Subway and McDonald’s, 39 percent of breakfast eaters would consider Wendy’s for their next meal, although Wendy’s doesn’t serve breakfast at all. Wendy’s was followed by Chick-fil-A and Burger King, with 30 percent of breakfast eaters, and Taco Bell, 29 percent.
“So many fast-food breakfast eaters are clearly their customers also,” Kerr said. “It’s a golden opportunity in the making.”
McDonald’s is testing all-day breakfast in San Diego as it seeks to lift sales out of a two-year slump. The Oak Brook, Ill.-based operator has long resisted consumer demands for breakfast past the traditional transition time of 10:30 a.m., largely due to concerns over operational complexity. The chain has also suggested, as recently as February, that its grills aren’t big enough to handle both eggs and burgers.
Yet the stubborn sales decline, which culminated with a 4-percent decline in same-store sales in February, has forced the company to rethink previous assumptions. Simultaneously, breakfast sales have grown during that time.
Breakfast all day has considerable potential, based on surveys and the buzz that McDonald’s has generated in the days since the test was announced. The National Restaurant Association said that 72 percent of adults want restaurants to serve breakfast items all day. That number rises to 79 percent of younger, Millennial customers.
The YouGov survey considered people who routinely eat quick-service breakfasts and asked them which chain they would consider for a different meal. McDonald’s, with 14,000 locations, would be an easy destination for most Americans.
“For all of McDonald’s perception woes, they are still so ubiquitous that numbers like these just confirm people still seriously consider eating there,” Kerr said. “Adding breakfast gives their customers another reason to come in.”
Additionally, McDonald’s customer satisfaction scores among breakfast diners, as calculated by YouGov, have improved more in the past 90 days than any other concept. Its satisfaction score rose seven percentage points, from 15 to 22, on a scale of -100 to 100, with zero being neutral.
Kerr suggested that the company’s advertising appears to be working.
“We think that a large part of that is the Pay With Lovin’ campaign’s effect,” he said.
He added that it is further evidence of the opportunity of all-day breakfast for the chain.
“If fast-food breakfast eaters have a higher satisfaction perception level, then it’s just that much more of an enticement to serve that meal all day long,” Kerr said. “These customers may turn out to be their best evangelists.”
Contact Jonathan Maze at [email protected]
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