Sunday, February 21, 2010
Fast-food breakfast sales decline as fewer head to work
This article is about how the high unemployment rate is reducing fast-food breakfast sales around America. Stating that more people are more inclined to skip breakfast or eat at their homes in an effort to save money. Breakfast companies also link low sales to the lack of morning rush hour to work.
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This makes sense with the economy and job loss still rising in places, people are looking to cut back anyway they can. I would think overall sales in general are probably down as well, but breakfast must be the main meal that they noticed.
ReplyDeleteI'm interested to see which fast food restaurants/ breakfast joints are hurting the most. I've noticed the new "dollar menu" type deals that fast food chains are advertising now, in attempts to get their sales up and encourage people to buy.
ReplyDeleteIt is very interesting that the executive at Burger King automatically thought that unemployment was the main reason due to the decrease in breakfasts sold. I have mixed feelings, yes many people would be less willing to wake at six and get breakfast and instead sleep in a tad later and eat something at home. But many people are still getting up early and trying to find a job and do something beneficial with their day and with that trying to eat a cheap breakfast and due to that they would get fast food. Due to my mixed feelings i believe their are more effects in the decrease amounts of breakfasts sold than just unemployment numbers.
ReplyDeleteIt is very interesting that the executive at Burger King automatically thought that unemployment was the main reason due to the decrease in breakfasts sold. I have mixed feelings, yes many people would be less willing to wake at six and get breakfast and instead sleep in a tad later and eat something at home. But many people are still getting up early and trying to find a job and do something beneficial with their day and with that trying to eat a cheap breakfast and due to that they would get fast food. Due to my mixed feelings i believe their are more effects in the decrease amounts of breakfasts sold than just unemployment numbers.
ReplyDeleteAs fast-food breakfast sales has seen decline and with new marketing strategies to show valued-added into their product such as more items on the dollar menu as Leah said, potential legislation that the fast-food industry may be looking at is against the extension of unemployment insurance. As a reduction in unemployment insurance increases the opportunity cost of being unemployed and thus increases the urgency of finding work, it would potentially lead to more people looking for work and succeeding. In turn, that would increase sales as suggested by the article as more people would go to work unless there are preference changes of the consumer and in the target market of the breakfast sales of the fast-food industry.
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