Inspired by a move from a leading QSR chain, The PRIDE Stores’ Urban Counter concept in Illinois began offering all-day breakfast several years ago and hasn’t looked back. Sister concept Taco Urbano launched its own all-day breakfast last year, in part because of the popularity of items like its breakfast burrito. According to The PRIDE Stores owner and CEO Mario Spina, despite the setbacks of the pandemic and the work-from-home trend in recent years, not to mention increased investment from fast-food operators into the daypart, “Our breakfast business is strong and consistent.”

The PRIDE Stores isn’t the only convenience retailer to respond in earnest to moves like Wendy’s breakfast menu and McDonald’s all-day breakfast. (McDonald’s all-day breakfast offer, launched in 2015, was discontinued in 2020.) Rather than giving up share to the fast-food giants, many c-stores have fought back with innovation of their own. “Our industry owns breakfast,” remarked Alex Williams, COO of Oklahoma-based Jiffy Trip. “Some QSRs have been late to the game. In this business, if you own breakfast, you own the day.”

Bundling breakfast items with a cup of coffee ... has proven time and time again to increase sales.”

Jiffy Trip last year unveiled JT’s Comfort Kitchen in Enid, Oklahoma. The foodservice concept offers freshly prepared, crew-served breakfast items, with the mission of “getting customers in and out in less than 60 seconds,” said Williams, noting that early customer response has been positive.

Urban Counter’s foray into all-day breakfast followed high demand for the concept’s breakfast burrito—made with fried eggs, bacon, jalapeño spread, cheddar cheese, french fries and black beans—Spina noted. “People wanted it outside of the breakfast time frame,” he said, “and with operators like McDonald’s going toward all-day breakfast, we decided to give it a try.”

In fact, Spina says that the expansion of fast-food players into the breakfast daypart has aided breakfast at his stores, not hindered it. “Customers are finding that our breakfast menu is affordable, made to order and of superior quality,” Spina explained. “I don’t mind that QSRs are pushing breakfast,” he added, as it helps raise awareness of the breakfast options that consumers have.

RECOVERY UNDERWAY

To be sure, the COVID-19 pandemic negatively impacted breakfast visits at c-stores, particularly at the height of lockdown. “The pandemic prompted an incredible shift in breakfast habits in c-stores,” said Peter Rasmussen, CEO & founder of Convenience & Energy Advisors. “Working from home,” he said, “led to a giant drop in breakfast traffic.” But Rasmussen and others noted that since worries about contracting COVID-19 have eased, the breakfast daypart has improved.

“We see more and more traffic coming back to the c-store space as people get back on the road for work, school, vacations and more,” remarked Karlee Hancock, convenience channel and customer insights manager at Tyson Foodservice. She cited December 2022 data from NPD CREST that pointed to a 2.8% increase in morning meal traffic in the channel over the previous 12 months. Still, Hancock added, “We’ve yet to recover to pre-pandemic levels. There’s still a lot of opportunity for future growth.”

Some convenience retailers report a return to business as usual for breakfast—and then some. Rick Rubino, co-owner of the three-unit Filling Co. Gas & Grub chain in Virginia, said work-from-home schedules have benefited his morning business. “Consumers are less apprehensive about placing to-go orders through Grubhub when they work at home than when they are at the office,” he explained. “Work from home has helped our online business.” At Rutter’s, meanwhile, Chad White, foodservice category manager, remarked that while the chain’s breakfast business was affected at the height of the pandemic, “Now that customers are mostly back to their normal routines, we’ve seen things bounce back and even surpass pre-pandemic sales.”

Some QSRs have been late to the game. In this business, if you own breakfast, you own the day.”

In recent months, though, inflation has been a concern for operators. Both Spina and Williams reported that they have had to raise the prices of breakfast items in the past year. With price hikes impacting virtually all commodities these days, promotional marketing has never been more important. “Shoppers across all channels are looking for deals on their purchases right now, and shopping in a c-store is no different,” commented Ben Boyd, vice president of convenience and deli at Tyson. “Shoppers want to find pricing deals, BOGOs, combo meals and more. Bundling breakfast items with a cup of coffee or creating a combo meal might not be the most creative value offering, but it’s one that has proven time and time again to increase sales in the breakfast daypart.”

The PRIDE Stores offers a free cup of coffee with the purchase of a breakfast sandwich and $10 of gas at the pump, as well as coupons for discounts on breakfast items. In an innovative partnership with the Chicago Blackhawks, the Windy City-area stores offer a percentage discount off breakfast sandwiches based on the jersey number of the team’s highest scorer for the week. At JT’s Country Kitchen, free samples are given away of various breakfast items during 30-minute windows.

CUSTOMIZATION COUNTS

Made-to-order breakfast options and customization have helped c-stores stand apart from their QSR competitors. “While McDonald’s may offer breakfast burritos, they can’t customize the way we can,” said Rubino of the Filling Co., which has offered all-day breakfast since it was founded three years ago. Customers pick from myriad options for breakfast bowls, sandwiches and burritos. “The sky’s the limit,” Rubino said. At JT’s Comfort Kitchen, customers can choose from an array of breakfast items, including eggs, sausage, bacon and biscuits—all prepared on-site—and then packaged in a hinged foam container for consumption on-premise or off. Rutter’s, meanwhile, has provided a build-your-own breakfast option for decades, even prior to the installation of ordering kiosks. “Customers love the ability to customize and build what they want, and we love offering them a large breadth of options,” White said.

The Pennsylvania-based retailer also has offered all-day breakfast for years, long before QSR operators got into the game. And thanks to the stores’ 24/7 model, Rutter’s has the edge ver the fast-food chains, he noted. While both Rubino and Spina concede that all-day breakfast can sometimes interfere with lunchtime foodservice, they say the challenges are worth it. “It’s been very positive for us,” Rubino said, “especially late at night.”

IT’S A HANDFUL

Not surprisingly, hand-held breakfast items are among the most popular at c-stores. Boyd pointed to NPD CREST data that shows breakfast-sandwich servings increased 9% in 2022 compared with 2019, representing the No. 1 prepared breakfast food (excluding doughnuts) in c-stores. Among Tyson Foodservice’s products are breakfast sandwiches from its Jimmy Dean, Tyson, Pierre and BIG AZ brands, as well as a recently launched chicken-and-waffle breakfast sandwich.

Other popular hand-held items include breakfast tacos and burritos (Williams described Jiffy Trip’s breakfast burrito as “large enough for two”). Breakfast pizza is on the menu, too. For more than two decades, the Iowa-based Casey’s chain has marketed a breakfast pizza topped with eggs and cheese, plus bacon, sausage and veggies as options.

[Breakfast] can build awareness among customers about other store items. They can come in for their grab-and-go breakfast, fill up, and decide to come back for lunch.”

Choices for health-minded consumers also abound. Williams pointed to Jiffy Trip’s breakfast keto bowl, featuring eggs, bacon and sausage, cooked on a flat grill. Urban Counter, meanwhile, offers avocado toast, turkey bacon, fruit cups and yogurt parfaits. “As c-stores work toward a more health-conscious focus, there’s endless potential for breakfast in our stores,” said Williams. “If it’s fresh and healthy, consumers will give us a shot.”

White and Spina agree. White of Rutter’s said that because consumers’ needs and tastes frequently change, it’s important for retailers to research trends. “Breakfast is a huge opportunity,” added Spina. “It can build awareness among customers about other store items. They can come in for their grab-and-go breakfast, fill up, and decide to come back for lunch.” And while in the store, it’s likely they’ll add impulse items to their orders, the retailer continued, “further building the basket.”