Consumer Spending Trends: Breakfast Takes The Spotlight

In a notable shift in consumer behavior, recent Toast data reveals that the early bird does, in fact, get the worm. Americans at quick-service restaurants are increasingly allocating their spending toward breakfast and away from dinner and late-night meals.1 This transformation in dining habits highlights a broader trend of changing preferences across the United States. 

Toast analyzed quick-service same-store restaurants on the Toast platform from April 1, 2023, to June 30, 2024 to determine what the current trends are in the industry. In this article, we’ll outline key findings and how restaurants can use this data to their advantage. Let’s get into it!

Consumer spending at restaurants

Rising morning appeal

Breakfast is emerging as a major focal point of consumer spending. Cities like Richmond, VA (+15%), and Oklahoma City, OK (+11%), have seen substantial increases in breakfast transactions in Q2 2024 compared to Q2 2023. Overall, 14 of the 20 cities we analyzed saw a rise of at least 1%. This is possibly driven by a combination of busier lifestyles, return to office, and an increased focus on health and wellness, as we see this spending shift away from late-night activity. 

Indianapolis’ breakfast spending increased by 8%, alongside a noticeable uptick in lunch (+3%) and dinner (+4%) expenditures. This suggests that consumers are not only valuing breakfast more but are also willing to spend more on meals throughout the day. 

Looking to step up your breakfast game? Wake up your business with these 10 simple steps for creating standout breakfast menus. 

Dinner preferences shift 

In contrast, dinner spending is experiencing a slight decline across various cities. Columbus, OH, stands out with a 9% drop in dinner transactions, while Charlotte, NC, and Minneapolis, MN, are also experiencing reductions of 4% and 8%, respectively. 

This decline could be attributed to several factors, such as the increased demand for breakfast. Some other causes could be changes in work schedules or an increase in cooking at home.  

As people embrace more flexible dining options and alternative evening routines, restaurants and food providers may need to adapt to these changing patterns. If you’re looking to get seats filled for dinner, check out these 15 restaurant promotion ideas. 

Late-night spending drops

Late-night spending has also seen a shift, with some cities experiencing sharp reductions. Oklahoma City, OK, has seen a 15% drop in late-night spending, while Denver, CO, and Seattle, WA, each declined by 9%. This trend aligns with the broader shift away from late-night activities, which could be driven by increased health consciousness and changing social behaviors.

Some options to help encourage consumers to increase their late-night spend include:

• Non-alcoholic beverages - Your guests can still enjoy their night at your bar with a mocktail. Consider adding a few to your menu to capitalize on this wellness trend. 

• Late-night promotions - Have you ever heard of reverse happy hour? Consider offering discounted drinks or promotions later in the night.

• Late-night menus - Making a late-night menu is a good way to attract new business. 

• Live music/DJs - When it’s late on a Saturday night, some of us like to dance! Learn how to get a live music license here. 

Regional variations and overall patterns

Cities like New Orleans and Houston exhibit moderate changes. New Orleans has seen a slight increase in late-night spending, while Houston's breakfast spending remains steady with only a minimal decline in late-night transactions.

New York City’s steady spending across all meal times, with no change for lunch and late-night, shows that its dining culture is as strong as ever. Even without growth, New Yorkers are sticking to their favorite meal —proving that even in a city of fast-paced change, the love for food remains constant.

Breakfast steals the Spotlight

The shift toward spending more on breakfast while dinner and late-night options fluctuate highlights a significant change in dining habits. As breakfast becomes the new favorite meal, restaurants might want to adjust their strategies to match these evolving consumer preferences. Embracing this trend could be key to staying ahead in such a competitive industry, so get ready to serve up those pancakes and omelets with extra flair! 

Hungry for more current restaurant trends? Check out the Q2 2024 Toast Restaurant Trends Report that examines popular lunch food trends, quick-service restaurant transactions in 20 U.S. cities, restaurant employee wages, and tipping data.

1Methodology: Toast analyzed hourly transactions at quick-service restaurants on the Toast platform from April 1, 2023, to June 30, 2024. Toast used a cohort of same-store restaurants on the platform since Q1 2023.