Breakfast Trends at U.K. Chains & Independent Operators Prepared for Brakes Group Prepared by: December 2012 Project #3638

Table of Contents Breakfast Trends………………………………………………………………………………………………..…..3 Breakfast Trends Across All Segments Casual-Dining Pub Chains Quick-Service Fast-Casual Fine-Dining   Consumer Data………………………………………………………………………………………………..…..40 Recent News…….…………………………………………………………………………………………..……..44

Breakfast Menu Trends

Breakfast Trends Across All Segments Among main dishes, menu penetration of breakfast platters decreased everywhere except at fast-casual chains. Porridge main dishes decreased everywhere except at pub chains. Conversely, porridge side dish offerings rose in menu penetration at both quick-service and casual-dining chains. Among breakfast beverage offerings, specialty coffee clearly leads in all segments. Juice, hot tea offerings also show significant menu presence. Fruit smoothie menu share rose considerably at fast-casual, quick-service and pub chains since 2011. Source: MenuMonitor; Technomic

Casual-Dining

Eggs Benedict/Florentine, Bacon-Focussed Dishes All Rise Considerably On U.K. Casual-Dining Breakfast Menus Since 2011 Menu Penetration - Top Breakfast Main Dishes at U.K. Casual-Dining Operators Base : Jul-Sep 2012 – 166 items on 18 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 150 items on 18 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Average Prices For Egg-Focused Entrées Rise At U. K Average Prices For Egg-Focused Entrées Rise At U.K. Casual-Dining Concepts In 2012 Average Price - Top Breakfast Main Dishes at U.K. Casual-Dining Operators Base : Jul-Sep 2012 – 166 items on 18 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 150 items on 18 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Specialty Coffee Easily The Top Menued Beverage On U. K Specialty Coffee Easily The Top Menued Beverage On U.K. Casual-Dining Breakfast Menus, Rising Nearly 5% In Menu Penetration Since Last Year Menu Penetration - Top Breakfast Beverages at U.K. Casual-Dining Operators Base : Jul-Sep 2012 – 253 items on 19 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 190 items on 15 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Bottled Beverage Prices Increase On Breakfast Menus At U. K Bottled Beverage Prices Increase On Breakfast Menus At U.K. Casual-Dining Concepts In 2012 Average Price - Top Breakfast Beverages at U.K. Casual-Dining Operators Base : Jul-Sep 2012 – 253 items on 19 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 190 items on 15 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Menu Penetration - Top Breakfast Sides at U.K. Casual-Dining Operators Hash Browns, Muffins Rise On U.K. Casual-Dining Breakfast Menus While Most Top Offerings Decline Since 2011 Menu Penetration - Top Breakfast Sides at U.K. Casual-Dining Operators Base : Jul-Sep 2012 – 112 items on 16 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 109 items on 18 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Average Price - Top Breakfast Sides at U.K. Casual-Dining Operators Fruit/Yoghurt Parfait, Bread Prices Rise Among Top Menued Breakfast Sides At U.K. Casual-Dining Chains In 2012 Average Price - Top Breakfast Sides at U.K. Casual-Dining Operators Base : Jul-Sep 2012 – 112 items on 16 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 109 items on 18 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Pub Chains

Porridge, Cereal/Granola Offerings Rise At U.K. Pub Chains In 2012 Menu Penetration - Top Breakfast Main Dishes at U.K. Pub Chains Base : Jul-Sep 2012 – 115 items on 17 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 80 items on 12 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Average Price - Top Breakfast Main Dishes at U.K. Pub Chains Egg-Focussed Main Dishes, Cereal/Granola Prices Up Sharply On U.K. Pub Chain Breakfast Menus In 2012 Average Price - Top Breakfast Main Dishes at U.K. Pub Chains Base : Jul-Sep 2012 – 115 items on 17 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 80 items on 12 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Menu Penetration - Top Breakfast Beverages at U.K. Pub Chains Signature Drinks, Hot Chocolate Increase Their Menu Share At U.K. Pub Chains In 2012 Menu Penetration - Top Breakfast Beverages at U.K. Pub Chains Base : Jul-Sep 2012 – 156 items on 12 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 104 items on 8 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Average Price - Top Breakfast Beverages at U.K. Pub Chains Lemonade, Energy Drink Prices Rise On U.K. Pub Chain Breakfast Menus Since 2011 Average Price - Top Breakfast Beverages at U.K. Pub Chains Base : Jul-Sep 2012 – 156 items on 12 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 104 items on 8 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Menu Penetration - Top Breakfast Sides at U.K. Pub Chains* Breakfast Bread Side Dishes Generally Increase At U.K. Pub Chains Since 2011 Menu Penetration - Top Breakfast Sides at U.K. Pub Chains* *Please note the low sample size (see below) for this dataset Base : Jul-Sep 2012 – 27 items on 10 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 25 items on 8 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Average Price - Top Breakfast Sides at U.K. Pub Chains* Yoghurt Offerings See Average Price Increase On U.K. Pub Chain Breakfast Menus In 2012 Average Price - Top Breakfast Sides at U.K. Pub Chains* *Please note the low sample size (see below) for this dataset Base : Jul-Sep 2012 – 27 items on 10 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 25 items on 8 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Quick-Service

Breakfast Sandwiches Up, While Breakfast Platters Decline, At U. K Breakfast Sandwiches Up, While Breakfast Platters Decline, At U.K. Quick-Service Concepts In 2012 Menu Penetration - Top Breakfast Main Dishes at U.K. Quick-Service Operators *Donut increase due to a single chain, Krispy Kreme, adding 20 donut offerings Base : Jul-Sep 2012 – 120 items on 16 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 74 items on 11 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Mixed Grill, Breakfast Platter Prices Considerably Increase On Breakfast Menus At U.K. Quick-Service Concepts In 2012 Average Price - Top Breakfast Main Dishes at U.K. Quick-Service Operators *Donut increase due to a single chain, Krispy Kreme, adding 20 donut offerings Base : Jul-Sep 2012 – 120 items on 16 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 74 items on 11 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Fruit Smoothies, Hot Tea Both Show Notable Increases On U. K Fruit Smoothies, Hot Tea Both Show Notable Increases On U.K. Quick-Service Breakfast Menus Since 2011 Menu Penetration - Top Breakfast Beverages at U.K. Quick-Service Operators Base : Jul-Sep 2012 – 353 items on 18 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 168 items on 10 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Fruit Smoothie, Coffee, Juice Prices Way Up On Breakfast Menus At U. K Fruit Smoothie, Coffee, Juice Prices Way Up On Breakfast Menus At U.K. Quick-Service Concepts In 2012 Average Price - Top Breakfast Beverages at U.K. Quick-Service Operators Base : Jul-Sep 2012 – 353 items on 18 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 168 items on 10 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Menu Penetration - Top Breakfast Sides at U.K. Quick-Service Operators Pastry, Porridge And Croissant Side Dish Offerings Rise At U.K. Quick-Service Concepts In 2012 Menu Penetration - Top Breakfast Sides at U.K. Quick-Service Operators *Other Side/Extra increase due to a single chain, Apostrophe, appearing in 2012 Base : Jul-Sep 2012 – 48 items on 13 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 51 items on 8 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Average Price - Top Breakfast Sides at U.K. Quick-Service Operators Mixed Fruit, Croissant Prices Rise On Breakfast Menus At U.K. Quick-Service Concepts Over The Past Year Average Price - Top Breakfast Sides at U.K. Quick-Service Operators *Other Side/Extra increase due to a single chain, Apostrophe, appearing in 2012 Base : Jul-Sep 2012 – 48 items on 13 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 51 items on 8 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Fast-Casual

Scrambled Eggs, Breakfast Platter, Bacon Sandwich Offerings All Increase On U.K. Fast-Casual Menus In 2012; Cereal/Granola, Porridge Offerings Fall Menu Penetration - Top Breakfast Main Dishes at U.K. Fast-Casual Operators Base : Jul-Sep 2012 – 63 items on 8 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 – 54 items on 8 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Average Prices For Cereal/Granola, Bacon Sandwiches Up Considerably At U.K. Fast-Casual Concepts Since 2011 Average Price - Top Breakfast Main Dishes at U.K. Fast-Casual Operators Base : Jul-Sep 2012 – 63 items on 8 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 – 54 items on 8 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Smoothie Offerings Show Considerable Increases On U. K Smoothie Offerings Show Considerable Increases On U.K. Fast-Casual Breakfast Menus In 2012 Menu Penetration - Top Breakfast Beverages at U.K. Fast-Casual Operators Base : Jul-Sep 2012 – 183 items on 8 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 – 82 items on 5 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Average Price - Top Breakfast Beverages at U.K. Fast-Casual Operators Hot Chocolate, Hot Tea Prices Up At U.K. Fast-Casual Concepts Since 2011 Average Price - Top Breakfast Beverages at U.K. Fast-Casual Operators Base : Jul-Sep 2012 – 183 items on 8 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 – 82 items on 5 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Menu Penetration - Top Breakfast Sides at U.K. Fast-Casual Operators Healthy Offerings, Such As Fruit and Yoghurt Parfaits, Increase On U.K. Fast-Casual Breakfast Menus In 2012 Menu Penetration - Top Breakfast Sides at U.K. Fast-Casual Operators *Increases due to three chains (Artisserie, EAT, Pret A Manger) adding breakfast offerings Base : Jul-Sep 2012 – 110 items on 8 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 – 63 items on 6 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Average Price - Top Breakfast Sides at U.K. Fast-Casual Operators Ham, Mixed Fruit Side Dish Prices Considerably Increase Up At U.K. Fast-Casual Concepts In 2012 Average Price - Top Breakfast Sides at U.K. Fast-Casual Operators Base : Jul-Sep 2012 – 110 items on 8 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 – 63 items on 6 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Fine-Dining

Egg Dishes Generally Increase On U. K Egg Dishes Generally Increase On U.K. Fine-Dining Breakfast Menus Since 2011; Cereal/Granola Offerings Also Moving Up Menu Penetration - Top Breakfast Main Dishes at U.K. Fine-Dining Operators Base : Jul-Sep 2012 – 87 items on 7 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 76 items on 7 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Salmon, Cereal/Granola Offerings Rise In Average Price At U. K Salmon, Cereal/Granola Offerings Rise In Average Price At U.K. Fine-Dining Concepts In 2012 Average Price - Top Breakfast Main Dishes at U.K. Fine-Dining Operators Base : Jul-Sep 2012 – 87 items on 7 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 76 items on 7 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Hot Breakfast Beverages Increase Menu Share On U. K Hot Breakfast Beverages Increase Menu Share On U.K. Fine-Dining Menus In 2012 Menu Penetration - Top Breakfast Beverages at U.K. Fine-Dining Operators Base : Jul-Sep 2012 – 95 items on 8 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 90 items on 6 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Average Price - Top Breakfast Beverages at U.K. Fine-Dining Operators Fruit Smoothie Average Prices Rise Notably At U.K. Fine-Dining Concepts Since 2011 Average Price - Top Breakfast Beverages at U.K. Fine-Dining Operators Base : Jul-Sep 2012 – 95 items on 8 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 90 items on 6 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Menu Penetration - Top Breakfast Sides at U.K. Fine-Dining Operators Vegetable Side Dishes Up On U.K. Fine-Dining Menus In 2012; Bacon Side Dishes Also Increase Menu Penetration - Top Breakfast Sides at U.K. Fine-Dining Operators Base : Jul-Sep 2012 – 51 items on 6 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 44 items on 6 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Average Price - Top Breakfast Sides at U.K. Fine-Dining Operators Average Prices For Croissant, Bacon, Sausage Sides Up At U.K. Fine-Dining Concepts Since 2011 Average Price - Top Breakfast Sides at U.K. Fine-Dining Operators Base : Jul-Sep 2012 – 51 items on 6 menus from U.K. Chains & Independent Operators; Jul-Sep 2011 - 44 items on 6 menus from U.K. Chains & Independent Operators Source: MenuMonitor; Technomic

Consumer Data

A substantial percentage of consumers say it is important for limited-service restaurants to offer breakfast promotions that create a strong value proposition How much do you agree with the following statements regarding breakfast at limited-service restaurants? (by age, top two box = agree and agree completely) % Overall 24% 22% 22% Base: 279 consumers aged 18+ who purchase breakfast from limited-service restaurants at least occasionally Respondents indicated their opinion on a scale 1–6 where 6 = agree completely and 1 = disagree completely Source: The U.K. Breakfast Consumer Trend Report (2011); Technomic, Inc.

Consumers are willing to spend more for breakfast items at higher-end fast-food restaurants than other limited-service concepts How much would you be willing to pay for the following breakfast items at limited-service restaurants? (Means shown) Base: 156 (fast-food), 73 (higher-end fast-food), 108 (bakery/café), 118 (patisserie) and 118 (coffee shop) consumers who purchase breakfast at these locations at least occasionally Source: The U.K. Breakfast Consumer Trend Report (2011); Technomic, Inc.

Although bundled breakfast offerings are generally associated with limited-service restaurants, more consumers find these options appealing in a full-service format How much do you agree with the following statements regarding breakfast at full-service restaurants? (by age, top two box = agree and agree completely) % Overall 32% 26% 25% Base: 101 consumers aged 18+ who purchase breakfast from full-service restaurants at least occasionally Respondents indicated their opinion on a scale 1–6 where 6 = agree completely and 1 = disagree completely Source: The U.K. Breakfast Consumer Trend Report (2011); Technomic, Inc.

Consumers will pay the same for à la carte and sandwich items at pubs and casual-dining restaurants, but will pay more at the latter for other breakfast main courses How much would you be willing to pay for the following breakfast items at full-service restaurants? (Means shown) Base: 56 (casual-dining) and 72 (pub) consumers who purchase breakfast at these locations at least occasionally Source: The U.K. Breakfast Consumer Trend Report (2011); Technomic, Inc.

Recent News

Recent Breakfast News Wetherspoon partnered with breakfast retailer MOMA Foods to begin offering porridge on the breakfast menu across its managed pub estate. The porridge can be served with honey and bananas or with a strawberry-blueberry compote. (December 2012) The Barracuda Group has extended its breakfast offerings to include light and premium options. New dishes include eggs Benedict; warm pancakes with raspberries, yogurt and oats; and a breakfast wrap filled with naturally smoked bacon, grilled pork sausage, hash browns, cheddar and mozzarella cheeses and a free-range egg. New beverages include Ocean Spray cranberry juice and orange juice, Costa coffee, Twinings flavored teas and PG Tips tea. (June 2012) Harvester Salad & Grill launched weekend brunch systemwide. Brunch options, available starting at £3.99, include mixed grill, steak and eggs, veggie breakfast, breakfast burger, potatoes, baps, porridge and cold and hot drinks. The brunch menu is available until noon every Saturday and Sunday. (April 2012) Source: The Digital Resource Library; Technomic, Inc.

For more information please contact: David Wilkinson U.K. Business Development Director 07715-291530 dwilkinson@technomic.com