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 - Winsight
Industry
Insights
A roundup of noteworthy Canadian foodservice
findings for the week of Feb. 21, 2022
Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of Feb. 21, 2022 - Winsight
© 2022 Technomic, Inc.
Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of Feb. 21, 2022 - Winsight
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
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