A month of coffee for $5? That’s Burger King’s plan to rule breakfast.
Excerpts from the article by Rachel Siegel on The Washington Post
Burger King’s newest discount is quite a whopper.
No, not that kind of Whopper.
The kind that gets customers to walk in and smell the coffee.
Burger King rolled out its own coffee subscription service: a cup a day for $5 a month. The chain is betting on the service to get early risers in the door — and away from other big names in the fast-food breakfast game.
The calculus is simple: Sell cheap coffee, sell more breakfast. If subscribers ordered coffee everyday of March, they’d pay roughly 16 cents per piping-hot cup. And while they’re at it, they might just pick up a breakfast sandwich or pancake platter on their way out.
“Fast food restaurants find ways to get some items that don’t necessarily sell well, and find attention-getting discounts to get people in the door,” said Jonathan Maze, executive editor of Restaurant Business Magazine. “This is a classic example of that.”
Fast food wars are, in part, fought over breakfast. Dunkin’ Donuts hooks customers with its coffee and doughnuts, and Starbucks obviously generates its own share of the morning coffee rush. When McDonald’s rolled out its all-day breakfast menu in 2015, sales sizzled. And it kept the momentum going — and its stock rising — by expanding its breakfast offerings over the next few years. In 2018, the company’s chief financial officer said the strategy was meant to “win back customers at breakfast."
At the time, the golden arch’s chief executive, Stephen Easterbrook, added: ““It’s very competitive out there at breakfast."
(Fast food is gritty competition: In 2018, Burger King offered customers 1-cent Whoppers if they placed an order within 600 feet of a McDonald’s.)
The fast-food industry as a whole has struggled with breakfast foot traffic. A February report from the market research firm Mintel said fast-casual restaurants would have to get creative if they wanted to attract customers beyond lunchtime, including through wider breakfast options in the morning or happy hour specials in the evening. The report said that only 6 percent of those surveyed mainly visit fast-casual restaurants for breakfast. That’s compared with 42 percent who said they mainly visited for lunch.
Read the full article on The Washington Post