All-Day Breakfast Impacts Q3 Ad Spending

All-Day Breakfast Impacts Q3 Ad Spending
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McDonald’s all-day breakfast initiative had an impact on restaurant industry ad spending even before it began. Total restaurant ad spending was $1.553 billion in Q3, down 1.1% from the same period last year but essentially unchanged from Q2 this year, according to Kantar Media.

Restaurants did better than total U.S. advertising spending, which declined 3.9% in Q3 to $36.4 billion. For the first nine months of 2015, U.S. ad spending is 4% lower than during 2014.

While total restaurant spending was off 1.1% compared with a year ago, advertising investments by quick-service restaurants declined by 2.5% in Q3. Kantar says this resulted from spending cutbacks by two of the largest advertisers: McDonald’s and Subway. McDonald’s reduction was in anticipation of major ad spending at the beginning of Q4 behind the October 6 introduction of all-day breakfast.

Denny's spent heavily in Q3 in support of its "America's diner" positioning.

Denny’s spent heavily in Q3 in support of its “America’s diner” positioning.

Not waiting for that rollout were two breakfast-centered chains, Denny’s and IHOP, which increased Q3 ad spending by 46% and 25%, respectively. “Their amplified marketing support appears to be a reaction to higher breakfast spending from several QSR chains and the anticipation of McDonald’s launch of an all-day breakfast menu,” Kantar says in a release detailing Q3 spending.

All this points to the likelihood that restaurant advertising spending in the last three months of 2015 will be record-setting.

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Burger King has added a true chicken burger (not a chicken breast andwich) to its menu for a limited time. The Flame Grilled Chicken Burger spotlights the brand’s open-flame grills. Toppings are tomato, lettuce, mayo, ketchup, pickles and sliced white onion on a soft, toasted brioche bun. Suggested price is $3.79, but it will be on Burger King’s popular “2 for $5” menu, along with the double-patty Big King, Big Fish Sandwich and Extra Long Cheeseburger.

I’ll bet that Burger King uses this new chicken burger patty to create a chicken Big King double-decker. McDonald’s has offered chicken versions of its Big Mac in Europe but hasn’t brought the idea here yet. We’ll see who does it first.

500 Degrees-BK 10-13-15

Wendy’s has a year-end addition to its menu as well: the Black Bean Burger. The patty is a blend of black beans, corn, roasted peppers and spices that’s topped with pepper-Jack cheese, ranch sauce, tomato and greens on a 7-grain bun. It’s at participating locations now.


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