Morning slump for fast food
McDonald’s has been the breakfast drive-through of choice for millions of Americans for decades. From Egg McMuffins to scalding coffee, the chain has dominated the quick-service breakfast market. But the last few years have witnessed a downturn in the morning traffic for the fast-food chains. Consumers are rethinking where to get their breakfast dollar’s worth, and that has opened the door for the competition to step in.
One of the surprise competitors isn’t another big burger chain but a convenience store chain. Casey’s General Stores in Iowa is picking up customers with lower prices and a growing breakfast menu, and it’s a genuine player in the morning rush.
Casey’s ups its game
Casey’s, with nearly 2,900 stores in 19 states, has built a reputation for bargains and filling food. While it’s perhaps best known for pizza, the chain has pressed aggressively into breakfast items to catch customers on the run who otherwise would grab something at McDonald’s.
Breakfast has been such a big category that Casey’s now offers nine distinct morning products, from sandwiches to burritos. Its prices are where it really shines. For example:
- A bacon, egg, and cheese sandwich costs about $3.69 at Casey’s.
- It’s almost $5.89 at McDonald’s—nearly $2 more.
That difference is making headlines among budget-conscious consumers, especially as inflation continues to climb and push the price of eating out higher.
Breakfast pizza: the surprise star
What sets Casey’s apart most, however, is its breakfast pizza. Beginning in 2001, the pie has been a menu staple ever since. Scrambled eggs, cheese, and cheese sauce or gravy top the pie, which can be topped with bacon, sausage, or vegetables.
Each pizza comes with 12 slices and sells for $17.99, making it an inexpensive option for families or groups. It’s also something customers can’t get at McDonald’s, giving Casey’s a unique edge.
The breakfast pizza has even developed a cult following, with fans praising it online as one of the best quick-service breakfast foods available. For many, it’s reason enough to choose Casey’s over a fast-food drive-thru.
The broader competition
Casey’s is not alone in pushing back at McDonald’s during breakfast. Convenience stores around the country are expanding their food items, investing in fresher fare and faster service.
Jeff Lenard, a representative of the National Association of Convenience Stores, commented in an interview with CNBC that quick-service restaurants are taking notice. They are examining late-night and early morning sales, specifically focussing on convenience stores and asking, ‘What works?’ How do we reproduce that in our stores?'”
The answer, at least in part, seems to be cheaper prices and creative menu options. Convenience stores are framing themselves as convenient and inexpensive—two qualities that greatly resonate with the contemporary consumer.
McDonald’s is still leading
Despite growing competition, McDonald’s is still the national leader in breakfast sales. Its McValue menu, featuring choices like a sausage biscuit for just about $1, continues to be attractive to individuals who have tight budgets.
McDonald’s also benefits from its brand name and its huge restaurant chain. With thousands of outlets that open extremely early in the morning, it still has a huge advantage in terms of accessibility.
Casey’s and other convenience stores are, nevertheless, proving that McDonald’s can’t assume dominance. With their high-quality, low-cost alternatives, they are chipping away at the fast-food giant’s breakfast market share quietly.
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The takeaway for customers
For the consumer, breakfast competition is good news. If you prefer McDonald’s tried-and-true staples or Casey’s creative options like the breakfast pizza, there are more affordable choices available.
As family budgets constrict under the weight of inflation, consumers will be more inclined to think about value and price. That spells opportunity for convenience stores like Casey’s, which may well continue to grow their customer base, while fast-food behemoths have no choice but to innovate and recalibrate their pricing strategies.
One thing is for sure: the battle for America’s breakfast dollar is just beginning, and winners will be consumers who get more options at lower prices.
