QUICK SERVICE RESTAURANTS - is pleased to present a Special Franchise Focus on Because life has to be enjoyed! - Canadian Franchise ...
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is pleased to present a Special Franchise Focus on QUICK SERVICE RESTAURANTS Because life has to be enjoyed!
FEATURED IN THIS EDITION: Fatburger�������������������������������������������������� 53 www.fatburgercanada.com Fresh Burger��������������������������������������������� 54 www.fresh-burger.com La Prep�������������������������������������������������������� 58 www.laprep.com Mr. Greek�����������������������������������������������������57 www.mrgreek.com/franchising Pizza Pizza������������������������������������������������� 55 www.pizzapizza.ca/franchising Quesada Burritos & Tacos������������������ 56 www.quesada.ca
Special Focus: Quick Service Restaurants Delicious and Nutritious Food for a World on the Go Every lunch hour throughout the country, thousands of hungry Canadians wrack their brains over what to eat. If they didn’t pack a lunch, they’ll likely make their way to one of Canada’s more than 75,000 food service franchise units. It’s a fact: Canadians love to dine with the franchise model. More Canadian Franchise Association (CFA) members are involved in the food service industry than any other sector, and with good reason. The food services sector makes up a significant portion of the franchise industry’s total growth, and continues to thrive. When it comes to keeping up with the fast-paced lifestyle of hardworking Canadians, quick service restaurant franchises are on the ball. According to IBISWorld, a provider of independent market research, increased consumer spending and ongoing product innovation by quick service restaurants has renewed consumer interest in “fast food”. Products with higher profit margins have been put front and centre at quick service restaurants, resulting in an increase in the average industry profit margin. According to a 2018 IBISWorld report, quick service restaurants are a $26-billion industry in Canada, with annual growth of 4.1 per cent between 2013 and 2018. This special section looks at the emergence of the quick service restaurant franchise model, and how it relates to the Canadian food service industry as a whole. It also highlights the franchises that are making convenience a top priority for their busy customers. Read on to discover the franchise opportunities available in this appetizing segment! Franchise Canada November | December 2018 51
The Foodservice Industry in Canada – An Overview Annual Sales: Share of GDP: Number of indirect jobs: $75-billion 4.0% 283,000 In 2014, Canadian households Share of Canadian Number of direct jobs: spent an average of workforce: 1.2-million 6.9% $2,229 at restaurants. Number of establishments: (full service restaurants, limited service restaurants, caterers, 18-million restaurant visits per day in Canada drinking places) 94,000 40% Millennials and Baby Boomers of franchises are restaurants are two of the key guest age segments, as they are visiting restaurants more frequently 45% Percentage of people Seven in 10 18-to-34-year-olds use a smartphone or tablet to look up who visited a restaurant restaurant directions/locations/hours of operation, while four daily in 2014 in 10 use them to order takeout or delivery CFA, Restaurantinvest.ca, Restaurants Canada, restaurantscanada.org, Statistics Canada 52 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
Food Service in Canada Canadians love to eat! Restaurants Canada, the national association for food service, reports that Canada’s restaurant industry generates $85-billion in annual sales, which equals four per cent of Canada’s economic activity. According to Restaurants Canada’s Food Service Industry Forecast, between 2017 and 2021, commercial food service sales will grow by an average of 3.9 per cent annually. Adjusted for menu inflation, real sales will grow by 1.2 per cent; keeping pace with Canada’s population growth. 3.9% $78- BC, ON, QC billion Between 2017 and 2021, At the provincial level, British Columbia, commercial food service Ontario and Quebec will boast the strongest sales will grow by an average food service sales growth in 2017 and 2018. By 2021, commercial of 3.9% per year. Adjusted convenient. food service sales will for menu inflation, real sales grow to $78-billion. will grow by 1.2%. DID YOU KNOW? Franchise Canada November | December 2018 53
Types of Restaurants Some franchise models are very easy to define. Quick service restaurants, for example, and, on the other end of the spectrum, fine dining. But then there are those in between, like fast casual, that sit somewhere in the middle. Quick Service Restaurants: Quick service restaurants have a focused menu and food is usually ordered at a counter and then brought to a table or taken out to eat. Many quick service restaurants offer drive-thru ordering for customer convenience. Also in the quick service category are fast casual restaurants. These establishments feature an ordering counter like quick service restaurants, with accoutrements like non-plastic cutlery and dishes and a made-to-order menu. Fast casual is generally considered to be positioned between quick service restaurants and casual dining restaurants. FOCUS ON GREAT FOOD AND FRANCHISEE PROFITABILITY LIMITED MENU = LOW OPERATING COST = LOW INVESTMENT = $$$$$ FOR YOU Looking for Single and Multi-Unit Operators in Ontario, Quebec and Alberta. CALL NOW Tastes Good Like A Hamburger Should!® (416) 587-7639 WWW.FRESH-BURGER.COM FRANCHISING@FRESH-BURGER.COM 54 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
Full Service Restaurants: Full service restaurants can be categorized by having a large menu and offering table service attended by wait staff. Within full service restaurants, further sub-categories can be defined, such as: Fine dining, featuring an upscale menu in a formal atmosphere Casual dining, featuring moderately-priced food in a more relaxed atmosphere Casual dining restaurants attract guests for a number of reasons, including the casual atmosphere, menu options, and family-friendly environment (with special menus and considerations for children and seniors). INVEST IN LOCAL now franchising coast-to-coast • Receive industry-leading training • Enjoy great marketing and operational support • Benefit from over 50 years of success • Join a network of more than 750 stores • Proud to be involved in our community FRANCHISES AVAILABLE WWW. PIZZAPIZZA.CA/FRANCHISING 1-800-263-5556 FRANCHISINGINFO@PIZZAPIZZA.CA Franchise Canada November | December 2018 55
What do Canadian consumers want from their foodservice experience? (Restaurants Canada: The Discerning Diner, 2015) How restaurant customers have used their tablets or smartphones in the past year: Look up directions/locations/ 49% hours of operation Order takeout or delivery 24% Use rewards or special deals 23% Look up nutritional information 15% Make a reservation through an app/website 12% Pay for a meal 8% None of the above 41% 108 LOCATIONS & COUNTING! NOW IS THE TIME TO GET ON BOARD! Why Quesada? It’s easy! • Canada’s fastest growing Mexican QSR. • Low initial investment. • Hands-on support. • Steady same store sales growth. WE’VE GROWN FROM 9 TO 108 LOCATIONS IN LESS THAN 6 YEARS! • Multi-Unit contracts available. 108 92 78 55 37 Contact us today. Tom O’Neill, President 19 9 1-866-854-2400 Ext. 101 tomoneill@quesada.ca 2012 2013 2014 2015 2016 2017 2018 quesada.ca/franchising 56 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
61% of Canadians agree ‘strongly’ or ‘somewhat’ that: “Restaurants provide tastes and flavours that aren’t easily duplicated at home.” How interested are consumers in using technology options at table-service restaurants? Self-service, touch-screen kiosks for ordering: 9% 13% 29% 20% 29% Menus on iPads/Tablets: 11% 14% 27% 20% 28% Electronic ordering system at the table: 10% 16% 28% 20% 27% Definitely interested Very interested Somewhat interested Not particularly interested Not at all interested AVILABL E NOW! Why Markha and Steelme Rogers Cen ? tre Woodbrid ge Brampton • 30 Years of Traditions & Success • Established & Recognizable Brand • Award winning Greek restaurant and franchise Danforth • Our leadership is committed and North Toronto. passionate about driving Mr. Greek® Mississauga forward into an exciting new era Oakville Burlington Current Develop Opportunitiesment JOIN OUR GROWING FAMILY Contact Jon Diniz 647.993.3266 jon.diniz@mrgreek.com www.mrgreek.com/franchising Franchise Canada November | December 2018 57
How often do consumers eat out? Quick service restaurants: 39% 42% 16% 3% Table-service restaurants: 27% 41% 28% 4% Order food for delivery/takeout: 19% 39% 26% 17% Heavy (at least once a week) Medium (at least once a month) Low (at least once every six months) Hardly (once a year or less) 61% of Canadians agree ‘strongly’ or ‘somewhat’ that: “Restaurants provide tastes and flavours that aren’t easily duplicated at home.” 58 Canadian Franchise Association www.cfa.ca | www.FranchiseCanada.Online
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