Within the broader foodservice channel, breakfast is a small and underpenetrated daypart that many operators plan to expand. Within hotels, however, breakfast is an important part of the consumer experience. It represents more than one-third of total segment revenues, with hotel breakfast revenues totaling nearly $10 billion in 2007, a number that underestimates the daypart’s importance because of the prevalence of complimentary breakfasts. Based on recent research, Technomic offers the following for consideration:

• Hotels have been among the leading segments in terms of breakfast growth, but with other segments adding breakfast to their menus, hotels have more competition.
  
• Some hotels, particularly in urban areas, are working to build breakfast traffic by attracting non-guests. Competing with fast food operators is difficult, and increased competition indicates that hotels are better served by using their resources to stimulate higher guest breakfast traffic.
  
• Premium beverages have driven much of the breakfast growth in recent years. Consumers are accustomed to premium/gourmet coffees in the morning, and their hotel experience is no different.
  
• Breakfast is increasingly a catered event. Overall, banquet and catering represents more than 40 percent of hotel F&B revenue, and for many business meetings, breakfast is the only meal consumed.
  
• Faster-growing breakfast food categories include sandwiches, yogurt, coffee, cereal, and pastries/sweet goods.
  
• Demand for healthy options is starting to impact breakfast growth, probably more in hotels than in other segments. Consumers increasingly say they want more fruit, less sodium, and no trans fats. While many hotels have embraced these changes, there is still much work to do to meet the consumer definition of “healthy.”
  
• There is a difference between truly healthy and perceived healthy. Some operators use terms like “fresh,” “whole grain,” and “natural” to give consumers the sense that food is better for them than it may actually be. Healthy snack bars are also used to increase the perception of the health-oriented position of their breakfast.
  
• Consumers say they want better side dish alternatives at breakfast. Hash browns tend to be the default choice, but now more operators offer home fries, fruit salads, and other options.
  
• While many hotels still focus on a sit-down breakfast offering, grab ‘n’ go convenience can attract more consumers. Offering easy-to-carry breakfast sandwiches, snack bars, and other on-the-go items is critical for success.