• Market Crumbs

IHOP Wants To Be More Than Just A Breakfast Joint

Image via Business Wire

Fast food restaurants have had to fight off competition as long as they've been a fixture on every street corner across America.

We wrote last week about the rush among quick service restaurants to offer a crispy chicken sandwich, even attracting McDonald's, which is venturing beyond its signature burgers into a market that's nearly twice the size of beef.

The latest surprise move in the restaurant space comes from pancake chain IHOP, which introduced a lineup of six different burrito and burrito bowl offerings. IHOP's Burritos & Bowls lineup includes breakfast, lunch and dinner offerings that can each be served in a tortilla or bowl.

IHOP has its sights on popular restaurants like Chipotle and Taco Bell as burritos and bowls continue to increase in popularity, especially as a breakfast item, which threatens IHOP's traditional breakfast offerings. IHOP cited data from Datassentials MenuTrends that shows burritos were the fastest growing breakfast menu penetration category in America pre COVID-19.

The Burritos & Bowls lineup starts at $5.99 as four of the six new menu items include eggs. The lineup includes the Classic, Country Breakfast, Spicy Poblano Fajita and Southwest Chicken, while the New Mexico Chicken and Spicy Shredded Beef are the only variations that don't contain eggs.

"Burritos are the #1 fastest growing breakfast menu items in America so, as the breakfast leader, IHOP needed to create some great ones," IHOP Chief Marketing Officer Brad Haley said. "At the same time, we know our guests are looking for menu items that are portable for take-out and delivery, which made our new line of Burritos & Bowls a natural fit."

This isn't the first time IHOP has tried to appeal to a broader customer base by steering away from its reputation as a place to get breakfast. A couple of years ago the company temporarily changed its name to IHOb, with the "b" standing for burgers, as it debuted its new line of all-natural burgers. The creative marketing campaign even helped IHOP quadruple the number of burgers it sold.

IHOP is also trying to attract customers that have depended on take-out and delivery amid the pandemic by highlighting several times in the press release that the Burritos & Bowls lineup can be enjoyed just as easily inside an IHOP or from the comfort of your home.

"While we're eager to welcome our guests to join us back under our blue roofs, we're happy to provide our delicious new Burritos & Bowls, anywhere, for breakfast, lunch or dinner," Haley said.

While few people think of IHOP when it comes to burgers, their burger launch was met with sales quadrupling. The company known for its flapjacks is now hoping to repeat the same success with the introduction of Burritos & Bowls in a highly competitive market.

Leftover Crumbs

  • Deliveries begin for China-made Model Y. Tesla has started to deliver Model Y vehicles throughout Shanghai that were manufactured at the company's Shanghai Gigafactory, according to Xinhua. The Model Y is the second car following the Model 3 to be manufactured at the Shanghai Gigafactory, which is Tesla's first plant outside of the U.S. Tesla said Model Y deliveries to other Chinese cities will begin soon as the company also plans to build a supercharger manufacturing plant in Shanghai that is expected to be operational next year.

  • Microsoft joins forces with GM and Cruise. Microsoft has entered into a long-term strategic relationship with General Motors and Cruise, an autonomous vehicle company majority owned by GM, to accelerate the commercialization of self-driving vehicles. "Our mission to bring safer, better, and more affordable transportation to everyone isn't just a tech race – it's also a trust race," Cruise CEO Dan Ammann said. "Microsoft, as the gold standard in the trustworthy democratization of technology, will be a force multiplier for us as we commercialize our fleet of self-driving, all-electric, shared vehicles."

  • Head of Instagram admits TikTok is ahead. In an interview with The Verge, Head of Instagram Adam Mosseri admitted TikTok is ahead of its recent clone Reels in the short-form video space. "I’m not yet happy with it," Mosseri said. "We're growing both in terms of how much people are sharing and how much people are consuming, but we have a long way to go. And we have to be honest that TikTok is ahead." Mosseri also said Instagram must eventually expand its suite of creative tools to better contend with TikTok's offerings.

  • Office Depot rejects Staples' offer. ODP Corporation has rejected a proposed acquisition by Staples, proposing instead a sale of only its retail and e-commerce business or a joint venture as it anticipates another prolonged and expensive regulatory review process. "One such option is a joint venture, which we believe is a viable path toward maximizing synergies and efficiencies for both companies that we would expect to result from such a transaction, and which would equally share the risks and benefits between our companies," ODP said. "Another option would be an acquisition by Staples of ODP's retail and consumer-facing ecommerce operations for a price that enables our shareholders to benefit from such synergies."

  • Stellantis makes debut. Stellantis, which is the combined company of Fiat Chrysler and Groupe PSA, jumped more than 10% yesterday in its NYSE debut as the merger between the two companies was completed over the weekend. Stellantis is now the fourth-largest automaker in the world by volume as the company will have 400,000 employees across mostly North America and Europe. "All of our employees and our management teams are totally focused on the value creation that is embedded on the merger of FCA-PSA and the creation of Stellantis," Stellantis CEO Carlos Tavares said.