This year marks the 50th anniversary of McDonald’s nationwide introduction of the Egg McMuffin. The Chicago-based fast-food giant is marking the occasion accordingly, by marketing the hell out of its breakfast daypart.
But it’s also worth noting the impact that sandwich has had on McDonald’s specifically and the restaurant business in general. That one product launched what has become (at least) a $10 billion business in the U.S., while fueling the creation of the fast-food breakfast daypart.
Herb Peterson was an owner-operator in Santa Barbara, California. At the time, according to McDonald’s, a lot of franchisees were examining strategies for opening in the morning. He believed that the company needed a unique product to do this.
Peterson tested a version of Eggs Benedict but later replaced the Hollandaise sauce with cheese and added Canadian Bacon. He also developed the Teflon rings used to give the eggs their shape. What later would be called the Egg McMuffin was tested as an open-face sandwich in some markets the next year, but the product made its national debut in 1975.
Two years later, McDonald’s rolled out a full breakfast menu.
Breakfast has since become vital for McDonald’s and big business for the restaurant industry in general. In the U.S., foodservice breakfast is a $128 billion business, according to Restaurant Business sister company Technomic. Fast food accounts for 37% of those sales.
It accounts for 12.5% of total foodservice sales, according to Technomic. Only Saudi Arabia, China and Spain generate a higher percentage of their foodservice sales in the morning.
McDonald’s doesn’t break out breakfast sales. But if we estimate that 23% of the chain’s sales come in the morning, that makes the company’s morning daypart an $11.6 billion business domestically. In short, nearly 10% of U.S. foodservice breakfast sales came through the golden arches.
That would easily be a Top 10 restaurant chain in the U.S., just behind Dunkin’.
“When I watched my father introduce this idea to Ray Kroc, we could not have anticipated it would become the foundation for the renowned McDonald’s breakfast menu,” Peterson’s son, David Peterson, said in a statement. The younger Peterson remains a McDonald’s owner-operator.
“It’s been remarkable to see people embrace this innovation over the last five decades,” he added.
At the same time, breaking into breakfast isn’t easy. Wendy’s tried it twice—and failed twice—before it finally was able to generate enough sales in the morning to make breakfast worth it. Taco Bell has tried breakfast, but it has given franchisees the ability to opt out of the daypart, and many operators are taking the company up on that idea.
Burger King offers a solid breakfast option, but its sales, both in dollar amount and in percentage of store sales, pale in comparison to what McDonald’s does.
In reality, these days McDonald’s biggest morning competitors are Starbucks, Dunkin’ and your local convenience store, the latter of which should not be discounted. All convenience stores have some breakfast offering and it’s probably getting better.
Now, the fast-food giant is kicking off a national campaign about its breakfast. The company is also offering discounts, including a $1 Egg McMuffin or Sausage McMuffin with Egg through the McDonald’s app on Sunday. Customers will also be able to get a free McMuffin sandwich when they order one for delivery all next month.
Meanwhile, the chain is rolling out Krispy Kreme doughnuts in New York City, adding a key market for that partnership. It is also adding bagel sandwiches nationwide for the first time, including the Steak, Egg & Cheese bagel, which apparently has a cult following, including a Facebook group devoted to its fans.
“Breakfast isn’t just a meal,” McDonald’s USA President Joe Erlinger said in a statement, “it’s a cherished tradition and cornerstone of our brand.”