Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of June 14, 2021

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Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of June 14, 2021
Industry
Insights
A roundup of noteworthy Canadian foodservice
findings for the week of June 14, 2021
Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of June 14, 2021
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I G N I TE C O M PAN Y

Boston Pizza                                                                                       BOSTON PIZZA SAME-STORE SALES

Struggles Amid
                                                                                                     YEAR-OVER-YEAR CHANGE %

Dining Restrictions
The COVID-19 pandemic is still              Despite a rocky 2020, Boston Pizza
hampering the restaurant industry’s         retained its spot as the lone full-service   -15.8%               -15.2%
recovery across Canada, and Boston          chain in the top 10 of Technomic’s 2021
Pizza continues to feel those effects. In   Top 200 Canadian Chain Restaurant
its first quarter of 2021, Boston Pizza     Report. The pizza chain had a net loss
reported a total system sales decline of    of only one location in 2020, dropping                                                 -29.3%
30.3% compared to the same period           from 396 to 395 units in Canada.                                             -32.9%
last year.
Same-store sales were down 29.3%
compared to the same period a year
prior, and down 40.3% compared to the
first quarter of 2019. Decreased foot                                                              -50.3%
traffic and varying degrees of dining
room closures for the prolonged
downturn were reasons cited by the                                                       Q1 2020   Q2 2020   Q3 2020    Q4 2020    Q1 2021
company.

Sources: Technomic Ignite Company

© 2021 Technomic, Inc.                                                                                                                       3
I G N I TE M E N U

Plant-Based Fare
Continues to Evolve
It’s no secret that plant-based fare has                 tofu wrapped in rice and served with
been rapidly increasing on menus. This                   umami sauces.
surge could be due to perceived health
                                                         Pizza operators are also leaning into
benefits, with 61% of consumers
                                                         meat alternative toppings, with Pizza
viewing food or beverage labeled as
                                                         Nova adding plant-based pepperoni
“plant-based” to be healthier. Operators
                                                         made from pea protein to its menu.
are taking notice of this, with plant-
                                                         Pizza Hut Canada joined the trend,
based beef showing 59.1% growth year
                                                         recently teaming up with Beyond Meat
over year on menus, making it the
                                                         to offer Beyond Italian Sausage on its
fastest-growing protein. However,
                                                         pizzas in select markets.
operators have also been increasingly
exploring new plant-based fare and                       In addition to plant-based meat
presentations beyond the standard                        replacements, plant-based dairy is also
veggie burger.                                           gaining mainstream traction,
                                                         demonstrated by Panago Pizza’s new
One such example is plant-based sushi.
                                                         Cheezy Bread spotlighting plant-based
Earls Kitchen + Bar recently rolled out
                                                         cheese.
its vegan Crispy Tofu Roll, featuring
cucumber, mango, avocado and crispy

Source: Technomic Ignite Menu, Q1 2020 to Q1 2021;                                                          Vegan sushi roll
Technomic 2020 Canadian Healthy Eating Consumer Trend Report                                       Image Source: Shutterstock

© 2021 Technomic, Inc.                                                                                                     4
I G N I TE C O N S U M E R
                                                                                                                     HOW IMPORTANT ARE THE FOLLOWING ATTRIBUTES
                                                                                                                      WHEN SELECTING A FULL-SERVICE RESTAURANT?

FSR Diners Continue
                                                                                                                            (% IMPORTANT/VERY IMPORTANT)

                                                                                                                                Quality of food when ordered for takeout

to Prioritize Takeout
                                                                                                                                Overall takeout capabilities
                                                                                                                                Quality of takeout packaging

                                                                                                                                                                              80 %
                                                                                                                                                                   78 %
                                                                                                                                                      78 %
A big question on the minds of many                         when deciding on a full-service                                             76 %
                                                                                                           75 %          75 %
centres around the future of off-                           restaurant for an occasion, we see that
premise. This is especially true of full-                   the number of consumers who prioritize
service restaurant operators who                            takeout continues to grow quarter over
pivoted to quickly accommodate                              quarter. Specifically, the quality of food                                                                        69 %
consumers’ changing needs and                               when ordered for takeout, overall
expectations for delivery and takeout                       takeout capabilities and the quality of                                                                66 %
over the past 15 months.                                    takeout packaging are significantly                                                                               68 %
                                                            more important to consumers today                                                         63 %
As consumers emerge, will off-premise
                                                            compared to just one year ago.                                                                         65 %
business resemble what it was pre-
pandemic? Will there be a slight easing                     We suspect that the importance of                                           59 %          63 %
of off-premise occasions, arriving at a                     these takeout attributes will level off as     56 %          57 %
level that is higher than seen before                       dine-in service returns yet will continue                                   60 %
COVID-19 hit?                                               to remain top of mind for diners moving
                                                                                                           56 %          57 %
                                                            forward.
If we look to attributes that are
increasingly important to consumers

                                                                                                         YE Q4 '19     YE Q1 '20     YE Q2 '20      YE Q3 '20   YE Q4 '20   YE Q1 '21

Base: Varies; Approximately 5,000 respondents ages 18+ per attribute
Source: Technomic Ignite Consumer brand ratings data, Q4 2019 to Q1 2021

© 2021 Technomic, Inc.                                                                                                                                                               5
G L O B AL F O O D S E RV I C E N AV I G ATO R
                                                                                                                                                                   # OF NEW MENU ITEMS
                                                                                                                                                                     ADDED PER CHAIN
                                                                                                                                                                        DURING 2020

LTO Battle: Asia Edition                                                                                                                                       Asia Average           18.7

                                                                                                                                                                   Thailand                 27.9

                                                                                                                                                               South Korea              22.6
Menu development is crucial for chains                          on the average number of new products             Thailand and South Korea come in at
to drive traffic and brand excitement in                        launched by leading chains throughout             third and fourth, respectively, both           Singapore       11.7
nearly every country globally—and no                            2020 based on monthly LTO tracking                easily outpacing the regional average.
more so than in Asia.                                           among key sets of restaurants.
                                                                                                                  It’s key for operators to understand the       Philippines   7.2
LTOs that express emerging trends,                              To set the baseline, in Asia overall, key         importance of product development in-
dishes and drinks that showcase                                 chains each rolled out about 18.5 new             market as it indicates how competitive
seasonal ingredients, and innovative                            Items during 2020 on average.                     the local landscape is and how                   Malaysia     9.4
items that restaurants develop in house                                                                           important it is to stay on top of emerging
                                                                Japan, to anyone familiar with the
all play into attracting both new and                                                                             trends. Suppliers can leverage this                Japan                         38.8
                                                                market, is easily the champ in the Asia
existing guests.                                                                                                  understanding to keep their pipeline
                                                                LTO battle with nearly double the
                                                                                                                  appropriately filled for the markets they
But the quantity of new products can                            region’s average.                                                                                 Indonesia
                                                                                                                  operate in.                                                        15.1
vary widely by country—even when
                                                                China comes in second, with chains on
looking at the same brand’s menu                                                                                  Technomic tracks LTO activity across
                                                                the mainland launching about 32 new
across different markets.                                                                                         25 markets globally and publishes data               India   6.5
                                                                items apiece over the course of the
                                                                                                                  in its annual country reports.
Check out who wins the battle for LTO                           pandemic-stricken year.
supremacy in Asia. Findings are based                                                                                                                                 China                  32.3

Note: 320 chain menus tracked monthly in Asia across China, India, Indonesia, Japan, Malaysia, the Philippines,
Singapore, South Korea and Thailand from January 2020 to January 2021
Source: Technomic Global Foodservice Navigator Program

© 2020 Technomic, Inc.                                                                                                                                                                             6
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