Looks Like Everyone is Getting Into The Breakfast Business?

Let Freedom Ring and Let Breakfast Reign and for God's sake improve those quarterlies, because, shareholder's equity and profits are what Wall Street is looking for. Sing the breakfast song with me over a hot cup of coffee and a few items on the new breakfast menu. Every Starbuck's Employee is now told that other coffee shops are no longer their competition, instead it's McDonalds.

You see Starbucks knows that McDonalds has a loyal set of customers who love their dark strong morning coffee, Warren Buffet is indeed amongst them. Now Starbucks carries breakfast sandwiches too, for .95 each and they are pretty darn good, much better than the rubbery Egg McMuffin say consumers. But wait, hold you horses, Yum Corporation owners of such brands as KFC, Taco Bell and Pizza Hut, will soon be offering a breakfast menu also.

Breakfast Pizza

Del Taco, Carl's Jr./Hardees, Wendy's, Jack-n-the-Box are among some of the fast food breakfast competitors that the Egg McMuffin and that favored strong coffee must contend with under the golden arches. Yum Corporation announced it is going to do something about it slumping sales in the US. Motley Fools Investment Online News reports that Mr. Novak of Yum stated in an interview that:

.. ..the U.S. division's transformation is being modeled after moves made in the past few years at McDonald's Inc., which added healthy options, better quality food and beverage choices to its menu. The changes there led to far higher sales and profit at the nation's No. 1 hamburger chain in the past year.. ..those techniques, particularly menu variety and healthier offerings, have already proved successful in its mainland China division - the main driver of its growth in the past year. At KFC restaurants in China, for example, the company offers fish products and are testing a line of beef items. In the U.S., the chain mainly sells fried chicken.

Will it work or is the fast food breakfast sub-sector already working at full capacity supplying the demand? Will more choices to early risers boost Yum Sales? Well, some analysts believe that if the stores are already there and are closed in the mornings before 10 AM or 11:00 AM then they are missing selling opportunities of loyal customers. Meanwhile, branding experts are not so sure that the KFC play will take off in the US like in China and fear it could be a mistake diluting the brand.

A pocket pizza type serving might suffice at Pizza Hut, but these stores do not have drive-thrus, where morning fast-food places receive nearly 50% of their business. With 35,000 locations World-Wide this is a major undertaking for the company, can they pull it off? Analysts say they have to do something, and I tend to agree that this is something, but am also a little skeptical, we shall see? Something to contemplate in 2008.

Looks Like Everyone is Getting Into The Breakfast Business?

"Lance Winslow" - Online Think Tank forum board. If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/. Lance is an online writer in retirement.

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