The Union Recorder

Top Stories

February 24, 2014

Taco Bell to take on McDonald's breakfast with eggs in waffles

Americans will soon be able to get their morning eggs wrapped in a waffle taco.

Yum Brands' Taco Bell chain will introduce breakfast foods such as waffle tacos, egg burritos and the bacon A.M. Crunchwrap nationwide on March 27. The move expands on a trial run that began in some locations in 2012, bringing a breakfast menu to 5,500 of Taco Bell's more than 5,700 U.S. restaurants.

 In pursuing morning diners, the chain is going up against McDonald's, the maker of the Egg McMuffin and the industry's top breakfast seller, said Bob Goldin, an executive vice president at Chicago-based industry research firm Technomic. McDonald's accounts for 31 percent of all fast-food sales in the morning, according to Technomic data.

"No one has come up with an Egg McMuffin killer," Goldin said in an interview. "It's an iconic product; it's hard to compete against."

For Taco Bell and other chains, breakfast represents a bright spot in an industry battered by competition and slumping consumer confidence. At fast-food and fast-casual restaurants, revenue from breakfast items grew 4.8 percent annually on average from 2007 to 2012, climbing to $31.7 billion, according to Technomic. That outpaced total sales growth of about 2.5 percent a year during that time.

As chains struggle to attract diners and boost same-stores sales, McDonald's and Burger King Worldwide have said they're focused on improving and advertising their morning menus. Starbucks also plans to revamp its breakfast sandwiches next month.

Taco Bell began testing breakfast foods in some locations about two years ago, offering items such as scrambled egg- stuffed waffles. Taco Bell's test items, which will now be offered nationally, include the $2.49 bacon A.M. Crunchwrap, which packs 650 calories, and a $1.79 coffee. That's pricier than the fare at McDonald's, which sells sausage burritos, sausage biscuits and cups of coffee for $1 each in its 14,100 U.S. restaurants.

Most Americans aren't willing to spend more than $3 on a fast-food breakfast, Goldin said. It's hard to challenge McDonald's, where "you can get breakfast really cheap."

Past attempts at selling breakfast food haven't gone well. Wendy's tested morning foods such as home-style potatoes and chicken biscuits in certain U.S. markets from 2010 to 2012. The company said last year that it was discontinuing breakfast because it wasn't satisfied with its financial performance.

Shares of Louisville, Ky.-based Yum, which also owns KFC and Pizza Hut, have decreased 3.7 percent this year through the close of trading last week. McDonald's, based in Oak Brook, Ill., is little changed this year, while Burger King has gained 14 percent.

Like Taco Bell, Burger King is trying to boost sales by appealing to consumers in the morning. In January, the Miami- based company gave away free cups of Seattle's Best coffee when customers bought one of their 18 different breakfast sandwiches. They also sell French toast sticks, sausage burritos and fruit smoothies.

"Breakfast is an opportunity," Alexandre Macedo, president of Burger King's North American unit, said during an earnings call earlier this month. "We started to work in breakfast in January, and we expect to continue to do that by the end of the year."

Burger King posted a 0.2 percent fourth-quarter gain in same-store sales in the U.S. and Canada, a better performance than McDonald's and Yum, which both reported declines.

"Doing breakfast right is very difficult," said Gary Stibel, founder and chief executive officer of the Norwalk, Conn.-based New England Consulting Group, which has advised restaurants such as McDonald's and Taco Bell in the past. It's not just about the menu, he said. Speed is critical.

"You've got to be able to get people in and out," he said.

1
Text Only
Top Stories
Poll
AP Video
Texas Scientists Study Ebola Virus Smartphone Powered Paper Plane Debuts at Airshow Southern Accent Reduction Class Cancelled in TN Raw: Deadly Landslide Hits Indian Village Obama Chides House GOP for Pursuing Lawsuit New Bill Aims to Curb Sexual Assault on Campus Russia Counts Cost of New US, EU Sanctions 3Doodler Bring 3-D Printing to Your Hand Six PA Cops Indicted for Robbing Drug Dealers Britain Testing Driverless Cars on Roadways Raw: Thousands Flocking to German Crop Circle At Least 20 Chikungunya Cases in New Jersey Raw: Obama Eats Ribs in Kansas City In Virginia, the Rise of a New Space Coast Raw: Otters Enjoy Water Slides at Japan Zoo NCAA Settles Head-injury Suit, Will Change Rules Raw: Amphibious Landing Practice in Hawaii Raw: Weapons Fire Hits UN School in Gaza Raw: Rocket Launches Into Space With Cargo Ship Broken Water Main Floods UCLA
Facebook
Twitter Updates
Follow us on twitter
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
Stocks
NDN Video
Heartwarming 'Batkid Begins' Documentary is Tear-Jerker Orlando Bloom 'Takes a Swing' at Justin Bieber In Ibiza Pitch Invading Morons Cause Chaos - @TheBuzzeronFOX Sadie Doesn't Want Her Brother to Grow Up "Maxim" Hotness! See Jessica Alba's Sizzling Spread Two women barely avoid being hit by train Broken Water Main Floods UCLA Orlando Bloom and Justin Bieber Reportedly Came To Blows In Ibiza Meet the Man Behind Dumb Starbucks Chris Pratt Adorably Surprises Kids at a 'Guardians of the Galaxy' Screening NOW TRENDING: Peyton Manning dancing at practice "The Bachelorette" Makes Her Decision Thieves pick the wrong gas station to rob Golden Sisters on '50 Shades' trailer: 'Look At That Chest!' Staten Island Man's Emotional Dunk Over NYPD Car - @TheBuzzeronFOX GMA: Dog passes out from excitment to see owner Baseball Hall of Famers Inducted 'Hunger Games: Mockingjay Part 1' Sneak Peek Florida Keys Webcam Captures Turtles Hatching Morgan Freeman Sucks Down Helium on 'Tonight Show'