McDonald’s to trademark 'McBrunch' for a bigger bite of the breakfast market

http://www.theguardian.com/business/2014/sep/16/mcdonalds-mcbrunch-trademark-breakfast-food

Version 0 of 1.

In the latest sign that McDonald’s is trying to consolidate its control of the coveted breakfast market, the fast food chain has applied to trademark a new word that could appeal to late morning risers everywhere: “McBrunch.”

The application, which the maker of the Egg McMuffin filed on 23 July, signals at the very least an interest in expanding what has been one of the company’s fastest-growing and most profitable day segments. “We’ve been serving breakfast now for over 30 years and it is one of our strongest day parts,” Peter Benson, McDonald’s CFO, said in a company earnings call this spring. “From a profitability perspective, [breakfast is] the strongest. And so we’ll continue to focus on our breakfast opportunities.”

Roughly one-quarter of McDonald’s revenues are earned during the morning rush, according to the Wall Street Journal.

Opportunities in the breakfast segment have been particularly attractive recently, given how competitive the fast food world has become. And McDonald’s, though it still accounts for nearly a third of all fast food breakfast sales, is now facing more competition than ever before.

Starbucks, which has long had its sights set on the breakfast market, expanded its food menu this past spring to include more morning sandwich offerings; Taco Bell, which only began selling breakfast items in March, now fancies itself a capable morning competitor (and is reportedly testing a breakfast taco); and Burger King has bet that patrons will buy burgers, of all things, on the way to work in the morning by adding the items to their breakfast menu.

“We’ve had some of our major competitors that have made runs at breakfast, and it seems every year there’s someone new that is making a run,” Benson said.

In all, the US breakfast business at fast food chains now rakes in about $50bn a year, and accounts for nearly all of the industry’s growth. Between 2007 and 2012, it was responsible for 90% of the industry’s sales growth.

This article appeared in the Guardian Weekly, which incorporates material from the Washington Post