Why Is Breakfast So Expensive? (Top 10 Reasons)

You may have had this question on your mind for a while: “Why is breakfast so expensive?” Or maybe you’re just starting to wonder. Either way, we want to answer your question and provide you with some insight into what’s going on, so we compiled the 10 best reasons why breakfast can be expensive.

Here are 10 reasons why breakfast is so expensive:

1: Breakfast is comprised of ingredients that are not typically included in other meals – Eggs, milk, bacon.

These ingredients are “specialty” items that make up the majority of breakfast foods. About 3/4 of the cost of eggs is attributed to production costs (given how popular eggs are and how many people eat them in the U.S.). The same goes with milk, where almost 90% of the cost goes towards the production of milk (whereas there are only 30 million gallons made every day, I think that number excludes the cost of cows). Finally, bacon is another popular specialty item that accounts for the cost of bacon being more expensive than other breakfast meat options (pork sausage).

2: Breakfast is typically served at “premium” times

According to a report by Restaurant Marketing Labs, the average visit duration to a restaurant (breakfast and lunch) was 2 hours and 40 minutes, compared to 2 hours and 25 minutes for dinner/supper. The majority of this time is spent waiting for tables and not eating.

3: Breakfast foods are viewed as “specialty”

From what we’ve seen from customers, breakfast is often perceived as a “specialty” meal where the customer expects to pay more for the product. This perception can be attributed to the high costs associated with the production of eggs and milk, which then has its price reflected in other breakfast meals.

4: Breakfast has become the most popular meal of the day

Breakfast has become the most popular meal of the day. In 2012, Americans consumed approximately 17 billion pancakes, 7 billion eggs, 1 billion omelets, and 15 billion biscuits. These numbers come from a study by Technomic that defines breakfast as “a meal eaten between 7 a.m. and 11:30 a.m.” including breakfasts served at restaurants, as well as those eaten in residential settings.

5: Breakfast is seen as “a meal”

Breakfast foods are perceived like other meals. Whether it’s a family meal or a restaurant meal, many see breakfast as “a meal”. This perception can cause people to pay more for the product, which then allows restaurants to make more money on breakfast items.

6: Breakfast is typically served with coffee and pastries

Starbucks Coffee accounts for the majority of sales of coffee in the United States and around the world. Starbucks coffee accounts for approximately 30% of all coffee consumed in the U.S. and around the world. Most people see Starbucks coffee as a “premium” type of drink that they would purchase at a restaurant or café.
The same goes with pastries, which account for approximately 44% of sales at breakfast restaurants in the U.S., which are usually seen as “premium” items served at breakfast spots (they are like mini breadbaskets).

7: Breakfast is “a meal of convenience”

Most people think of breakfast as a quick meal to grab, often on their way to work or school. This “grab and go” mentality allows customers to buy more food for their money (e.g., large breakfasts).

8: Breakfast is typically served with other meals

Breakfast can be served as part of a combo meal or in combination with another meal. For example, a “breakfast combo” with orange juice or coffee, followed by eggs, bacon, or sausage links, and French toast is a popular combination. This combination is typically seen as “a way to save money” at breakfast.

9: Breakfast is perceived to be a “specialty” meal

In the minds of many people, breakfast can be viewed as a “specialty” food item (e.g., eggs are an expensive product). Breakfast is also seen as a “specialty” meal where people would pay more for the product. Not only that, but consumers also see Starbucks coffee and pastries (e.g., muffins) as “specialty” items that can be served at restaurants.

10: The price of other breakfast foods is going down

According to the U.S. Bureau of Labor Statistics, the prices for eggs, milk, and butter have decreased since the year 2007. (Other breakfast foods like bacon, sausage, and cereals have remained fairly consistent in terms of price). According to USDA Food Price Outlook, egg prices will fluctuate a little to decrease by 0.9% from last month. Despite this fact, it’s still important that restaurants make a profit on breakfast items (breakfast simply cannot be seen as a “loss leader” or else they won’t make any money).

Thanks for reading and if you have any comments please leave them below. We hope that this article gives you a good understanding of why breakfast is so expensive.

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