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Subway now joins the breakfast war against super chain powers McDonald’s, Dunkin’ Donuts and Burger King. A breakfast combo of an Egg Muffin melt and a 16 ounce Seattle’s Best coffee at Subway is $2.50. It has been available since April 5 at almost all 22,000 Subway outlets nationwide.
This may not be a particularly great time to go after more consumer dollars, given the recession's bite. Last year, breakfast sales at restaurants dropped 2.8 percent to $25.3 billion, with full-service restaurants taking the biggest hit, falling 6.7 percent, according to Mintel Foodservice in Chicago, which provides restaurant industry analysis. Fast-food sales were up slightly, about 0.5 percent.
The key is a longer-term shift in eating habits. Last year, more than 55 percent of breakfast restaurant sales were at fast-food chains, Mintel said. Sales apparently crossed the 50 percent threshold around 2004, meaning that for the past six years the majority of people craving bacon and eggs who didn't want to cook went to someplace like McDonald's. So why not at Subway?
… Subway, with U.S. sales of about $10 billion, said that restaurants that tested the breakfast menu added about 6 percent to sales. [via Chicago Tribune]
Missing in action – Wendy’s. They are still test-marketing.