New Taco Bell Breakfast Menu Aims at McMuffins

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Feb. 25 (Bloomberg) -- David Henkes, vice president at Technomic, examines the latest entry in the fast food wars as Taco Bell announces its first breakfast menu items on Bloomberg Television’s “In The Loop.”

Research on the breakfast wars.

And the breakfast market, mcdonald's still dominates, right?

Mcdonald's is the undisputed leader in breakfast in fast food industry overall.

The fast food industry is littered with chains that that they can do a better breakfast than mcdonald's, and mcdonald's is still at the top.

They are struggling, you have companies like taco bell saying maybe we can go a little bit earlier in the day and start selling breakfast items.

How you think they will do?

They look at the opportunity, and they're looking for growth like everyone else.

They have 50700 stores that are not really doing anything until lunch starts.

They're looking at the opportunity to drive her mental tales.

They have had innovation with the doritos logos that have really accelerated their growth, and they're looking to commute to doing that with breakfast -- continue to do that with breakfast.

This is an opportunity for additional dollars and eight -- in an industry that is struggling right now.

You could see why he what you would want to do this, but where do companies fail here?

There are a couple of things that really drive reckless.

What is the convenience factor, and that is where mcdonald's excels.

They are so many locations that we cannot go three blocks without finding a restaurant for breakfast.

The drivers are obviously keen.

Talk about will that -- taco bell cannot overlook the importance of coffee going along with breakfast and they have a proprietary blend they are introducing as part of this, but it is important to do a very good job with coffee as walls the food quality which they have done a lot of work around.

Convenience and coffee are the big keys to succeed at breakfast.

You have mentioned that in terms of ratings, and it is interesting, with coffee so important, almost 80% of the people who go to mcdonald's say the coffee is excellent, but it taco bell it is 50%. taco bell has not had those occasions where coffee is important, you do not typically buy copy with your talk goes.

It is something they need to introduce to the consumer make sure that they are comfortable with them and make sure they're getting into -- ending a good value.

Other companies have tried to do this, subway comes to mind.

Subway is an interesting concept is that they are also everywhere.

They actually have more units than mcdonald's, but they're not very convenient.

They do not have drive through's. it is important to get the consumer into the door in the morning, and what they are trained to do is get the consumer to buy a sandwich for breakfast and for lunch for later.

I do not and that anyone would consider it a rousing success of a because consumers will drive right by a restaurant if they cannot get and out for breakfast.

What is mcdonald's to do in the face of this competition?

They are the leader right now.

Taco bell is more in that they are trying to be a number two competitor.

They are competing against working and others were not doing breakfast particularly well.

Mcdonald's is not particularly worried at this point about taco bell.

They are worried about these others in fast casual movement, and how those other smaller players, while taken while -- one by one are not that big a threat,, but together they are a threat.

The new trend is fast casual, and there are, and chipotle, they have to look at those four -- they are competitors for the share of stomach, and the overall things that go into a good experience at a fast food restaurant.

Thank you so much.

The breakfast wars between taco bell, mcdonald's, and every

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change