Breakfast is popping.
More specifically… The breakfast segment is experiencing a fundamental shift in behavior, traffic, and opportunity that’s creating one of the most attractive spaces for food franchising right now.
Here’s why…
Majority of franchise investors are continuing to flock to lunch & dinner concepts while sleepily overlooking one of the fastest growing segments in the industry. A segment with lower overhead. A segment with higher customer frequency. A segment with more resilient consumers.
It’s time to wake up and pay attention.
Here’s What You’ll Learn…
- Why Breakfast Demand Is Booming
- Why Breakfast Franchises Are Built Differently
- How to Identify Worthwhile Breakfast Franchises
- The Consumer Trends Fueling Breakfast’s Success
- Why Now Is the Best Time for Breakfast Franchises
Why Breakfast Demand Is Booming
This is not a trend.
The breakfast daypart is booming — and it’s been for a while.
In fact, the US breakfast restaurant industry is predicted to reach $15.6 billion in 2025 after growing steadily by 7.5% each year since 2018. Consistent growth like that doesn’t occur because of chance — it happens because consumers are visiting restaurants and cafés for breakfast… and then returning.
Breakfast restaurants have earned loyal customers, and they’re earning them by serving a consumer who works from home.
Shifts in workplace flexibility have pushed breakfast out of the home and onto brunch menus across the country. Whether customers are staying up later and rising with the sun, or skipping breakfast entirely and meeting friends for mid-morning meals — they want breakfast options that are delicious, healthy, and served quickly.
That’s exactly why now is a great time to franchise for the early risers who want healthy, high-quality morning food served fast.
Why Breakfast Franchises Are Built Differently
Here’s a fun franchise fact most people don’t know…
Breakfast concepts have a built-in advantage most lunch & dinner spots can only dream of.
Let’s break it down…
- Lower labour costs. Servers and cooks aren’t working late shifts.
- Lower food costs. Breakfast foods are less expensive per ingredient.
- Higher frequency. Customers eat breakfast every day. (They don’t “treasure dinner”.)
- Faster cash flow. Revenue is collected by mid-morning.
When it comes down to it, breakfast franchises are fundamentally different businesses than dinner franchises. The sales model, operating expenses, and customer acquisition requirements are unlike any other daypart.
Which means a breakfast franchise’s potential can’t be judged by how lunch and dinner are doing.
Look at the opportunity for what it is — and it’s pretty great.
How to Identify Worthwhile Breakfast Franchises
Timing aside… What makes a good breakfast franchise?
Well that depends.
Unlike lunch and dinner concepts that remain open from morning to night, breakfast franchises have a narrower window to turn tables. That means the entire business needs to be streamlined from staff to suppliers to marketing. When executed correctly, you’re left with a tight breakfast franchise with less overhead than your average all-day café.
But what makes a strong operator within that space? Here are a few key traits that separate successful concepts from the imitators.
- Streamlined menu. Successful franchises don’t try to be everything. They refine their menu down to what they can produce easily and repeatedly.
- Quick service. Breakfast diners are on a schedule. If a restaurant takes 15-minutes to serve up breakfast, they won’t come back.
- Focus on health. 41% of consumers under 35 prefer healthier breakfast options when eating out. Make sure your concept future proofs itself by incorporating breakfast foods that fit into a healthy diet.
- Know your brand. This goes hand-in-hand with streamlining your menu. Know who you want to serve and stop trying to target everyone.
These are just a few of the telltale signs that set apart franchises worthy of your consideration from flashy bottom-line junk.
The Consumer Trends Fueling Breakfast’s Success
Breakfast isn’t just trending — it’s the most popular daypart by a country mile.
Over two-thirds of Americans say breakfast is their favourite meal to eat out. That’s right. And while millennials and Gen Z may influence how that breakfast is consumed — they both value speed and health above all when dining out. That means the brands that will stand the test of time are the ones that offer healthy breakfast foods without slowing their service.
It’s also why the number of global breakfast-specific restaurants grew by 17.2% between 2019 and 2023.
Operators saw the shift toward daily breakfast dining early and invested. Franchise buyers who invest in breakfast concepts now will still be ahead of the curve — especially if they focus on launching premium, health-forward breakfast brands in untapped markets.
Why Now Is the Best Time for Breakfast Franchises
The data on breakfast’s successful present and future makes a clear case for franchise buyers who want to own a breakfast brand to feel confident diving in. But if you’re sitting on the fence, here are a few things to consider when searching for your next franchise opportunity:
Look at unit economics above all else. How much do franchisees actually make? Seek out franchisors that publish their real financial performance data and weed out the ones that don’t.
Expand your search based on territory availability. A premium concept in a saturated area is tough business. Make sure there are still ample territories available in your desired market before getting too excited about a brand.
Research franchisee satisfaction. Franchise disclosure documents can only tell you so much. Don’t be afraid to reach out to existing franchisees and hear their side of the story.
Understand the operational model. How many people does it take to run one of these restaurants? Do they require specialized equipment? Is the concept only served during peak hours? Every factor increases your overhead.
Evaluate the brand positioning. Is this concept investing in what’s profitable today or building a business around tomorrow’s customer? Health. Speed. Experience. These are the three pillars of a successful breakfast franchise.
Breakfast franchise buyers who come into the segment informed and discerning will thrive. So take what you learned here, do your diligence, and pick a brand that fits your vision for the future.
Breakfast franchises that position themselves correctly will not only survive — they’ll prosper.
The opportunity to own in this high-frequency, high-margin category is here. But only for a limited time.
Restaurant investors who doubt whether or not now is the right time to buy into breakfast are going to wake up to their competitors owning all the good territories.
Opportunity is knocking. It’s time to open the door.
