Taco Bell Thinks Outside the Breakfast Bun

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Feb. 25 (Bloomberg) -- New England Consulting Group CEO Gary Stibel discusses the fast food breakfast wars on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Mcdonald's serious competition when it launches its national breakfast many on march .7. i want to bring in a fast food breakfast king, a man who really understands these wars, the ceo of the new england consulting group.

He has advised both talk about a mcdonald's in the past.

What do you make of the were?

It will be quite a battle.

There is a lot to be gained.

There is a lot to be gained for taco bell and a lot to be lost i mcdonald's and other fast food chains that serve breakfast.

Is it a zero-sum game?

One company's gain is another's lost?

It is not.

I do not think mcdonald's will miss on this one.

The guys who will lose are the cold cereal manufacturers.

They have been losing all along and they will continue to lose because people are eating breakfast where they want to and not sitting down at the breakfast table to eat a cold cereal in their home.


If ie post raisin bran for breakfast now and have been doing so for 10 years, even while the mcmuffin has been available and the mcdonald's biscuit sandwich and all the other stuff i could get, i am going to change that now to buy a waffle sandwich at taco bell?

References the most habitual time of day, but if you look at what most people are doing, they are eating less cereal in the morning and are going to mcdonald's, dunkin' donuts or starbucks, and taco bell will clearly do a good job because they are a first-rate operator and they have novel products.

They are going to hurt mcdonald's very little.

Mcdonald's has done a brilliant job principally in coffee because breakfast is all about coffee.

Mcdonald's had the food east really put together.

They have now done the coffee.

You think people who are going to mcdonald's a few days and weeks for breakfast say, hey, i will run from the border and happened to be across the street?

I've never gone to mcdonald's for breakfast.

I cannot imagine myself taking a look at a waffle taco commercial and saying, i want to dig in.

One of the hardest thing for all of us do is realize we are not typical of the rest of the planet.

There are 20% of mcdonald's business today being done at records.

They have done a brilliant job of making that a habit for it awful lot of people.

They have now improved their coffee to a point where it is excellent.

Lies the move from talk about not taking customers are mcdonald's? it will take customers who are eating at home.

I do not understand that.

No, all of the restaurants are taking business from home prepared breakfasts, which has been declining.

All restaurants are growing.

Taco bell will take is from mcdonald's. it will principally be younger men who taco bell has targeted its is missed towards.

They have done a brilliant job of that.

The boo-hoo on variety.

-- people who want variety.

There had been more breakfasts than ever before.

Starbucks and dunkin' donuts, how do they fit into the mix?

Coffee, if it is as important as he sate is, they have surely got an edge.

Coffee is critical and much harder than most people realize.

If you do not believe that, try to repair a pot of coffee on your own at home.

It is tough to do well throughout the day.

Mcdonald's has done a brilliant job of coming back with me cafe, i far better coffee than any sandwich shop ever had.

To answer your question, starbucks and dunkin' donuts have both done coffee brilliantly from day one and they continue to.

You think coke making this partnership is a mistake because people cannot make coffee well at home?

It is not a mistake.

Renown has done a brilliant job of helping people make a very good cup of coffee at home.

I thought you just said people do not make good coffee at home.

It is very hard to make the coffee at home, particularly if you make it by the pot.

It tastes fresh with your first cup and bert with the last cup and most people do not know how to make it at all.

What they have done is they have taken all of the complexity out.

Even a dummy like me now can make a good single cup of coffee and you could come around an hour later and make yours taste just as good.

One quick thing before we let you go.

If coffee still is the secret weapon, what is the next one?

Nobody will go back to a restaurant that serves bad or instant -- inconsistent coffee.

Coming on very strong is steep.

We are just learning how good he is for you and how many varieties there are of tea.

Tea is a very fast follower.

Shortly behind that, you have got all the varieties and jews.

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


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