Harper West
Wendy's breakfast menu has had a turbulent history, with several attempts to implement permanent breakfast items failing until a nationwide re-launch in March 2020. Despite the challenges posed by the pandemic, Wendy's breakfast sales have been steadily growing, reaching 8.5% of the company's sales mix by Q4 2021. With a variety of offerings, including sweet and savoury options, beverages, and iconic sides, Wendy's breakfast menu seems to be resonating with customers. The company has also embraced innovation, launching products like the hot honey butter chicken biscuit. While Wendy's has transitioned away from disclosing specific breakfast sales targets, there is evidence to suggest that their breakfast business is performing well and filling a big hole in their overall business strategy.
| Characteristics | Values |
|---|---|
| Sales mix in Q4 2021 | 8.5% |
| Sales target | $3,000 to $3,500 in sales per restaurant per week |
| Sales in Q4 | Above $3,000 |
| Sales mix goal | 10% by the end of 2022 |
| Current sales mix | Not reported |
| Investment | $20 million |
| Sales volume | Sufficiently filling a "big hole" in Wendy's business |
| Menu items | Breakfast Baconator, Frosty Cream Cold Brew, Breakfast Burrito, Fresh Baked Oatmeal Bar, Sausage Gravy & Biscuit, Croissant Breakfast Sandwich, Buttermilk Biscuits |
| Delivery | Available in select markets in the US |
| Delivery partners | DoorDash, Uber Eats, Grubhub, Postmates |
| Delivery start time | 8 am local time |
| Breakfast service end time | 10:30 am |
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What You'll Learn
Wendy's breakfast sales performance
While the company is no longer disclosing the sales mix for breakfast, it has transitioned to measuring success through sales volumes. In the fourth quarter, Wendy's achieved its target of $3,000 to $3,500 in weekly breakfast sales per restaurant, adding a profitable sales layer to the business. This indicates that Wendy's has established itself as a significant player in the breakfast market, despite strong competition from chains like McDonald's and Taco Bell.
The success of Wendy's breakfast menu can be attributed to several factors. Firstly, they offer a wide range of options, including savory staples such as sausage, egg, and cheese, as well as sweet treats like the Frosty Cream Cold Brew and Fresh Baked Oatmeal Bar. Secondly, Wendy's focuses on serving fresh, craveable food, with ingredients like freshly-cracked eggs and Applewood smoked bacon. They also offer deals and rewards through their mobile app, providing incentives for customers to choose Wendy's for breakfast.
However, there are areas where Wendy's can improve. BTIG analyst Peter Saleh suggests that Wendy's needs to focus on driving frequency and awareness, especially when competing against larger chains. He emphasizes the importance of promoting coffee, as it can bring customers in and potentially increase incremental sales by pairing it with a sandwich. While Wendy's has coffee options like the Frosty-ccino and Redhead Roaster, they haven't been the main focus, and the company recognizes the need to build beverage credibility.
In summary, Wendy's breakfast sales performance has been strong, with the menu contributing a significant portion to the company's sales mix and achieving profitable sales targets. To maintain and improve their performance, Wendy's should continue to innovate and focus on driving awareness, especially in the beverage category, to compete with larger competitors in the breakfast market.
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Customer perception of Wendy's breakfast menu
However, there have been some critiques of certain menu items. For example, the Fresh Baked Oatmeal Bar, intended as a "wholesome" choice, has been criticised for its high sugar content and toughness. Similarly, the Frosty Cream Cold Brew, a combination of cold brew coffee and a Frosty-based creamer, has received mixed reviews. While some customers enjoy the sweetness, others find that the distinct Frosty flavour doesn't come through strongly enough.
In terms of sales performance, Wendy's breakfast sales have shown growth over the years. By Q4 2021, breakfast sales reached 8.5% of the company's total sales mix, and the company had met its target of $3,000 in breakfast sales per restaurant per week. This indicates that Wendy's breakfast menu has gained traction among customers, particularly with its national strategy, filling a "big hole" in the business according to BTIG analyst Peter Saleh.
However, Wendy's faces strong competition from rivals such as Taco Bell and McDonald's, which have established breakfast routines among their customers. To maintain its momentum, Wendy's may need to focus on promoting its beverage offerings and encouraging customers to switch from their usual coffee choices. Despite this challenge, Wendy's breakfast sales continue to grow, and the company is working on driving awareness and repeat purchases to establish the morning routine for its customers.
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Wendy's breakfast menu items
Wendy's breakfast menu offers a range of mouthwatering options to satisfy all your morning cravings. From savory staples to sweet treats, fluffy buttermilk biscuits to flaky croissants, and refreshing beverages, there's something for everyone.
One of their signature items is the Breakfast Baconator®, a decadent combination of six strips of Applewood smoked bacon, a square breakfast sausage patty, a fresh-cracked grade A egg, two slices of American cheese, Swiss cheese sauce, and a premium bun. For those who enjoy a mix of sweet and savory, the Honey Butter Chicken Biscuit is a perfect choice, featuring a crispy chicken filet topped with a maple honey butter spread on a fluffy biscuit.
If you're a fan of the classic breakfast trio of sausage, egg, and cheese, Wendy's offers it in a biscuit form with their Sausage, Egg & Cheese Biscuit. Similarly, their Bacon, Egg & Cheese Biscuit combines fresh-cracked grade A egg, Applewood smoked bacon, and melted American cheese on a fluffy biscuit.
For those with a heartier appetite, the Breakfast Burrito is a satisfying option, encompassing the best parts of Wendy's breakfast menu. Pair your meal with their famous Frosty®-ccinos, Cold Brew with cream, Caramel Cold Foam, or Chocolate Cold Foam for the ultimate breakfast experience.
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Wendy's breakfast delivery
The Wendy's breakfast menu offers a range of options to satisfy different cravings. For those who want a savoury breakfast, there are options like the Breakfast Baconator, sausage, egg, and cheese, and Applewood smoked bacon. Sweet treat options include the Frosty Cream Cold Brew, which combines cold brew coffee with a Frosty-based creamer in chocolate, vanilla, and caramel flavours. Other beverage options include regular and decaffeinated coffee, as well as cold brew with cream, Caramel Cold Foam, and Chocolate Cold Foam.
For those looking for a more wholesome option, Wendy's offers a Fresh Baked Oatmeal Bar with whole oats, dried blueberries, and cranberries. However, it's important to note that this option contains more carbs and sugar than most of the chain's breakfast sandwiches.
Wendy's has partnered with four delivery apps—DoorDash, Uber Eats, Grubhub, and Postmates—allowing customers to place orders through the Wendy's app or any of these third-party partners. Typically, delivery services start at 8 a.m. local time, and it's recommended to call your local Wendy's to verify their hours of operation as breakfast service times may vary by location. Most Wendy's restaurants stop serving breakfast at 10:30 a.m., but some may halt delivery orders 15 minutes earlier to facilitate a smooth transition to the lunch menu.
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Wendy's breakfast sales targets
Wendy's has set itself ambitious sales targets for its breakfast menu. In 2021, the company aimed to reach a sales mix of 10% by the end of 2022, which it achieved in part due to the success of products like the hot honey butter chicken biscuit. This was a significant increase from the 7.5% sales mix achieved in 2020, which was already considered a strong performance given the impact of the Covid-19 pandemic.
To further boost sales, Wendy's set a new goal of reaching $3,000 to $3,500 in breakfast sales per restaurant per week. This target was also surpassed, indicating the success of Wendy's breakfast offerings and the effectiveness of their national strategy.
Despite these successes, Wendy's faces strong competition from rivals like Taco Bell and McDonald's, which have established themselves in the breakfast market. To differentiate itself, Wendy's has focused on offering a diverse range of breakfast options, including sweet and savory items, as well as unique beverages like the Frosty Cream Cold Brew.
To drive sales and attract customers, Wendy's has also utilized various strategies, such as delivery services, partnerships with third-party delivery apps, and promotions through its mobile app, where customers can earn rewards and take advantage of deals and offers.
While Wendy's has transitioned away from disclosing specific breakfast sales mix targets, the company remains committed to driving awareness and repeat purchases to establish itself as a go-to breakfast destination.
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Frequently asked questions
In Q4 2021, breakfast sales reached 8.5% of the company's sales mix. This was a strong performance, and CEO Todd Penegor expressed confidence that the sales mix would reach 10% by the end of 2022. While the company is no longer reporting the daypart's mix as of Q1 2023, Wendy's has surpassed its sales targets, indicating that its breakfast offerings are doing well.
Wendy's breakfast menu includes a range of options, such as the Breakfast Baconator®, Breakfast Burrito, and croissant breakfast sandwiches. They also offer sweet treats like the Frosty Cream Cold Brew and Fresh Baked Oatmeal Bar.
Most Wendy's restaurants stop serving breakfast at 10:30 a.m., although it may vary by location. It is recommended to call your local Wendy's to verify their breakfast hours.
