Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of Feb. 21, 2022 - Winsight
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Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of Feb. 21, 2022
I G N I TE C O M PAN Y TIM HORTONS SAME-STORE SALES YEAR-OVER-YEAR CHANGE (%) Tim Hortons Builds Momentum 27.4% 11.3% Canada’s largest coffee chain has While Tim Hortons’ international 9.5% begun to rebound after a rocky 2020, footprint has grown rapidly in 2021, the with same-store sales up more than brand only added 13 new locations in 11% in the fourth quarter compared to Canada last year, bringing its total to the same period the year prior. This 3,949. China is driving this international marks the third consecutive quarter Tim growth, now with 300 stores across the -3.3% Hortons has seen positive same-store country. sales growth. System sales for Tim Hortons Canada -11.9% -13.7% grew by more than 10% in 2021 after falling 18.5% the year prior. This increase is largely attributed to growth in same-store sales due to fewer temporary closures from pandemic- -29.9% related restrictions. Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Source: Technomic Ignite Company © 2022 Technomic, Inc. 3
I G N I TE M E N U Pizza Operators Embrace the Nontraditional Pizza is a classic dish, and many its Chicken Shawarma Pizza and operators are adding new twists by Donair Pizza. In the same vein, Boston experimenting with new and unique Pizza took inspiration from the pizza toppings. This pizza innovation is American South with its The Cajun likely driven by consumers’ desire for Jambalaya Pizza, topped with spicy new flavours, with 66% of consumers Italian sausage, Cajun chicken, shrimp, agreeing they would be more likely to green pepper and black olives. visit new restaurants if they provided Boston Pizza took nontraditional pizza new flavours more often.* toppings a step further when it also Some of these nontraditional options added The Pickle Pizza, featuring include globally inspired pizzas, fueled buttermilk ranch and garlic-dill pickles. by the ever-increasing consumer Blaze Pizza also embraced consumer gravitation toward exotic flavours. desire for bold and unique flavours with Panago Pizza recently debuted a Jerk its limited-time Hot Maple Drizzle, Chicken Pizza, featuring sweet-and- swapping out more common hot honey smoky tropical sauce and jerk chicken. for chile-infused maple syrup. Pizza Pizza joined the global trend with *Base: Approx. 1,192 consumers *Source: Technomic 2021 Canadian Flavour Consumer Trend Report Source: Technomic Ignite Menu Image Source: Shutterstock © 2022 Technomic, Inc. 4
I G N I TE C O N S U M E R The Health-Focused Consumer on the Rise Healthy Is Still 55% Trending 51% 51% 52% 51% “I actively seek out nutritious foods that are good for me” (agree/strongly agree) Industry experts have shared that Depicted in the chart to the right, we consumer needs will fuel the rebound of see that the percentage of consumers restaurants in 2022. who agree or strongly agree with the statement, “I actively seek out nutritious For example, as consumers return to Share of recent LSR occasions: foods that are good for me,” has grown regular away-from-home routines, they Better-for-you primary need state quarter over quarter and is up 4 may express a greater sense of feeling percentage points compared to the prior incredibly busy or time-starved, forcing year. Similarly, the share of recent 23% convenience-based need states to 21% 21% limited-service occasions that are 20% grow. Or, perhaps consumers who have 18% driven by better-for-you need states has missed the social aspects of dining out grown 5 percentage points compered to will point toward experiential need Q4 2020. states as their primary motivator when selecting a restaurant for an occasion. Operators and suppliers alike should consider how they might satisfy the While all of this may be true, Ignite needs of a more health-focused Consumer data suggests that a focus consumer. Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 on health is still important as we move further into 2022. Base: Varies; Approx. 5,600 consumers ages 18+ per quarter Source: Technomic Ignite Consumer brand ratings data © 2022 Technomic, Inc. 5
G L O B AL F O O D S E RV I C E N AV I G ATO R Chains Plan Massive Growth in China Papa Johns made industry headlines in Lao Xiang Ji Xiabu Xiabu the U.S. with a major development deal Founded in 2012, this homegrown Founded in 1998, this longstanding for China calling for 1,350 new units on chicken QSR—loosely translating as chain of hot pot restaurants recently the mainland by 2040—marking its “hometown chicken”—is mulling an IPO trimmed its portfolio by about 200 largest-ever international agreement. to help fund its efforts grow from its restaurants in the wake of the That equals about 75 new units current 1,000 units to 1,500 by 2023. pandemic. Now, Xiabu Xiabu is gearing annually and would certainly get the up for a growth push, with plans to Shanghai Auntie chain closer to rivals in the market like develop some 500 new restaurants on Magritta Pizza and Domino’s. Also known as Auntea Jenny, this the mainland by 2025. homegrown tea chain reportedly plans Though significant for a U.S.-based Only Technomic tracks restaurant chain to open 7,000 units in China in 2022 pizza QSR, the growth appears more news, trends and developments daily alone. The 2013-founded QSR currently modest stacked up against some local across 25 countries in a dozen has some 4,000-plus units on the players’ nearer-term goals. languages to keep clients informed and mainland, with a concentration in the ahead of the competition. Learn more Here’s how some local chains expect to north. now. grow in China: Source: Technomic Global Foodservice Navigator Program Image Source: Shutterstock © 2022 Technomic, Inc. 6
WAN T M O R E I N S I G H T S ? Since 1966, we have You can get this Ignite Company Ignite Menu produced in-depth See where restaurant chains Pinpoint the latest menu trends report delivered to are, how many units they have and see what’s on the horizon. research focused on the you bi-weekly! and how well they’re doing. Explore>> Explore>> foodservice industry. Sign up here>> We provide insights into consumer, industry and menu trends in the U.S., Canada and 23 countries around the world. Our team of experts helps leaders Ignite Consumer Global Foodservice in the industry make complex Get to know your customers’ Navigator business decisions, set strategy customers through 60+ attributes Understand the global industry, and stay ahead of the curve. and visit occasion metrics. from menu trends to consumers, Explore>> in 25 countries. Explore>> Have questions about this report? Reach out to us today. 312-876-0004 info@technomic.com technomic.com © 2022 Technomic, Inc.
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