Why big food and restaurants are at odds over breakfast - Business Insider

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Restaurants have battled each other with breakfast offerings for years. In 2021, they'll have a new competitor — big food companies.

Restaurants have lost breakfast sales as far fewer people make a morning commute and need fast food options during the pandemic.

But thanks to the pandemic, another group of contenders has entered the battle for breakfast: Makers of cereal, oatmeal, and frozen sausages. "It's been a disproportionate hit because these are higher-margin products," he said. "It's not only hurting the top line but certainly hurting the bottom line as well."

Retail sales of other breakfast foods, such as eggs, bacon, breakfast sausage, and English muffins also grew significantly during the year-long period.Those results have been welcome at companies like Post Holdings, the consumer division which makes cereal brands from Grape Nuts to Malt-O-Meal and Raisin Bran. It reported that its consumer sales grew 4% during the fiscal year that ended in September. Those sales were also were profitable than the year before thanks to manufacturing efficiencies.

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