Canada

Chef inside commercial kitchen
by David Klemt David Klemt No Comments

Canada’s Restaurant Labor by the Numbers

Canada’s Restaurant Labor by the Numbers

by David Klemt

Chef inside commercial kitchen

While there are positive signs for Canada’s foodservice industry, recruiting and retaining labor continues to be a challenge.

Unfortunately, this isn’t a challenge unique to Canada. Operators throughout North America and indeed across the globe are facing labor shortages.

Restaurants Canada addresses this topic in their 2022 Foodservice Facts report. The non-profit research and advocacy group predicts sales will reach pre-pandemic levels by Q4 of this year.

However, restaurants, bars, and nightclubs may have to achieve traffic and revenue growth despite a significant labor deficit.

Please click here to access the 2022 Foodservice Facts report yourself.

Labor Shortage by Category

In their latest report, Restaurants Canada crunches the numbers for three distinct venue categories. These are quick-serve restaurants, full-service restaurants, and bars and nightclubs.

The organization finds that QSRs and FSRs are facing the greatest shortages. In fact, in response to a survey from May of this year, at least half of QSRs and FSRs aren’t operating with fulls staffs.

For QSRs, 52 percent of respondents say they perceive restaurants and bars they’ve visited to be understaffed. A bit over a third (36 percent) think staffing is “about right.” Unhelpfully, 12 percent “don’t know” if restaurants and bars have enough staff.

So, let’s switch gears to FSRs. Precisely half of survey respondends say restaurants and bars don’t have enough staff. Just like their QSR counterparts, 36 percent say that staffing seems to be at the ideal level. Fourteen percent respond that they “don’t know,” which doesn’t tell us much.

Per Canadians who responded to Restaurants Canada’s survey, bars and nightclubs are fairing better…at first. Frustratingly, a staggering 37 percent of respondents “don’t know” if bars or nightclubs have appropriate levels of staffing. Thirty-two percent think they’re understaffed, 31 percent think staffing levels are “about right.”

Industry professionals are probably already putting two and two together here. As long as guests receive the level of service they expect, from greeting to speed of service, to closing out their check, they think things are fine. If they’re made to wait longer than they want, they’ll likely say a restaurant, bar or nightclub doesn’t have enough people on shift.

Labor Shortage by Role

Okay, so the May 2022 Restaurants Canada wasn’t entirely helpful. It still provides interesting insight. That is, we know how guests perceive staffing in at least most instances.

So, let’s get down to hard numbers: shortages in specific roles throughout the industry.

Here, Restaurants Canada provides compelling information, even if it’s not what we want to see. In comparison to 2019, every role is down by thousands of people. In some cases, tens of thousands.

Below you’ll find the deficits by role:

  • Foodservice supervisors: -3,100
  • Chefs: -10,900
  • Bartenders: -17,600
  • Maîtres d’hôtel and hosts/hostesses: -21,100
  • Restaurant and foodservice managers: -22,400
  • Food counter attendants, kitchen helpers, and related support occupations: -43,200
  • Cooks: -44,400
  • F&B servers: -89,500
  • Other: -18,800

Add that up and that’s a shortage of 271,000 people throughout Canada’s foodservice industry. For further context, the industry boasted 1,265,700 workers. In 2021, the industry was down to 994,700.

Unfortunately, from 2020 to 2021, just 4,100 jobs were recovered, according to Restaurants Canada. This situation clearly shows that operators need to change their approach to staffing.

Now, more than ever, operators must focus on effective recruitment, onboarding, and retention. For tips on making improvements, click here. To learn how to implement employee surveys to boost retention and avoid costly turnover, click here.

Image: Brian Tromp on Unsplash

Canon accounting calculator
by David Klemt David Klemt No Comments

Restaurants Canada Reveals Pandemic Impact

Two Years On, Restaurants Canada Reveals Pandemic Impact

by David Klemt

Canon accounting calculator

Restaurants Canada looks at the impact of the pandemic on the foodservice industry in their latest Foodservice Facts report.

Canada’s foodservice industry research and advocacy non-profit sees a return to pre-pandemic operations. However, the path forward toward pre-pandemic traffic and sales levels won’t be without its challenges.

“While nominal sales are expected to return to pre-pandemic levels before the end of the year, traffic still remains below what it was before,” says Restaurants Canada president and CEO Christian Buhagiar.

To access your own copy of 2022 Foodservice Facts, click here.

Industry Still Struggling

As an owner, operator, or foodservice professional, you probably have the answer to a specific question in mind.

When will we be “back to normal?” And, of course, the natural followup to that question. Will the industry surpass 2019 traffic and sales?

Restaurants and bars throughout Canada have survived six waves of Covid-19 over the course of two-plus years. There have been an inordinate amount of lockdowns that inarguably forced the permanent closure of far too many businesses.

As Restaurants Canada states (and the rest of us know all too well), there’s no telling if another Covid-19 variant will rear its ugly head. It’s conceivable (but with any luck unlikely) that Canada could face future lockdowns.

At the moment, according to Restaurants Canada, foodservice sales are currently 11 percent below 2019 levels. And yes, that’s after adjustment for inflation. Speaking of which, one reason traffic and sales remain below those of 2019 is consumer confidence. Many Canadians are concerned about a possible recession.

In addition, operators in Canada continue to face a labor shortage.

News Not All Bad

Now, anyone who read the previous section would be justified in lacking confidence in the industry. However, there is good news.

First, let’s compare Q1 of 2022 to Q2. Per Restaurants Canada, just 15 percent of restaurants were able to seat guests with zero restrictions. By April, though, approximately 90 percent of restaurants in Canada could serve in-person guests restriction-free.

Second, Q2 had more positivity in store for operators. According to Restaurants Canada, the FSR segment endured an 18-month decline in traffic when Covid-19 took hold. When restrictions were lifted, the floodgates of consumer demand burst. By Q2, traffic was a mere one percent lower in comparison to 2019.

Going a bit granular, QSR performance also improved in Q2. Per Restaurants Canada, QSR traffic lagged eight percent behind pre-pandemic levels. However, that number improved to just two percent under pre-pandemic levels by Q2.

Compellingly, Q2 still wasn’t done with foodservice industry positivity. While QSRs outpaced FSRs three-fold in terms of traffic, their numbers combined bring the industry back to 2019 Q2 levels.

Restaurant Canada’s positive outlook predicts that the industry will return to pre-pandemic levels by Q4.

Image: StellrWeb on Unsplash

Door with number 50 address
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2022 50 Best Bars: North America

2022 50 Best Bars: North America

by David Klemt

Door with number 50 address

Probably a speakeasy.

The World’s 50 Best Bars ranking for North America is official and the bars are, of course, extraordinary.

Unsurprisingly, much of the list consists of “household” names in our industry. Now, where some people may see a list of the “cool kids,” I see something different.

In a word, consistency. Sure, the more cynical among us roll their eyes at rankings and awards.

However, I see approaches to operations, service, menu and design innovation, and guest experiences to learn from and emulate.

Would I like to see bars in markets outside of the usual suspects on these lists? Absolutely. As so-called secondary and tertiary markets develop their scenes that may start to happen more often.

So, congratulations to this year’s 50 Best Bars in North America! Cheers!

Canada

This year, the second-largest country in the world claims eight of North America’s 50 best bars. One bar is in the top ten.

As Ontario’s capital and Canada’s most-populous city, it should come as no surprise that Toronto takes four spots. Bar Mordecai is number 47, Bar Raval is 41, number 38 is Mother, and Civil Liberties is tenth.

It’s a bit surprising to see just one bar from Vancouver—number 25, The Keefer Bar—but Montréal has two venues on the list. The Cloakroom Bar is number 45 and 29 is El Pequeño Bar.

Bar Kismet, in Halifax, Nova Scotia, is sitting in the 49th spot on the 2022 North American list.

America

Impressively, the US boasts 30 of North America’s 50 Best Bars, six of which are in the top ten. Intriguingly, ten of the bars on this list were ranked on the World’s 50 Best Bars last year.

As one would assume, New York City dominates the 2022 rankings. Eleven bars are on the list, with the number one spot going to Attaboy. Congratulations to Michael McIlroy and Sam Ross, their teams, and their partners. Katana Kitten is number four, and Dante earns the eighth spot on the list.

Moving to the south, two bars on the list are in Miami: Broken Shaker (32) and Sweet Liberty (14). Heading northwest, Kumiko in Chicago is in the top ten at number five.

On the other side of the country, Los Angeles claims three spots, one in the top ten. Genever holds number 50, Death & Co. is 34, and Thunderbolt is ninth. The Bay Area has two bars on the list. ABV in San Francisco is number 39 and Oakland’s Friends and Family is in the 33 spot.

Somewhat surprisingly, Las Vegas and New Orleans each have just one bar in the rankings. One of my personal favorites, Herbs & Rye, is number 28 on the list. Jewel of the South in NOLA is in the top half of the list, holding number 24.

In San Juan, Puerto Rico, the beloved La Factoría is twelfth on the list.

Mexico

Achieving 11 spots—three in the top ten—Mexico is crushing it this year. Remarkably but not surprisingly, the three bars in the top ten are all in Mexico City.

Baltra Bar earns number nine, and Handshake Speakeasy and Licorería Limantour are second and third, respectively. Overall, Mexico City boasts six bars on this list.

Two spots are in Oaxaca: Selva, which is number 22, and Sabina Sabe, number twenty.

Arca, number 37, is in Tulum. Number 21, El Gallo Altanero, is in Guadalajara. And Zapote Bar in Playa del Carmen almost breaks the top 10, coming in eleventh.

Cuba

The legendary El Floridita grabs Cuba’s only entry on the 2022 list.

Impressively, El Floridita can trace its opening to the early 1800s. Originally, the space was La Piña de Plata. About a century later, a bartender, Constantino “Constante” Ribalaigua Vert, became the owner and changed the name.

Oh, and he just so happens to be the inventor of the frozen Daiquiri. Along with its impressive history, El Floridita also has an awesome statue with its own seat at the bar. Ernest Hemingway is immortalized in bronze.

50 Best Bars: North America

Below, the full list in ascending order.

  1. Genever (Los Angeles, CA)
  2. Bar Kismet (Halifax, Nova Scotia)
  3. Teardrop Lounge (Portland, OR)
  4. Bar Mordecai (Toronto, Ontario)
  5. Julep (Houston, TX)
  6. Cloakroom Bar (Montréal, Québec)
  7. Bitter & Twisted (Phoenix, AZ)
  8. Clover Club in (New York, NY)
  9. Bar Leather Apron (Honolulu, HI)
  10. Bar Raval (Toronto, Ontario)
  11. El Floridita (Havana)
  12. ABV (San Francisco, CA)
  13. Mother (Toronto, Ontario)
  14. Arca (Tulum, Quintana Roo)
  15. Death & Co (Denver, CO)
  16. Mace (New York, NY)
  17. Death & Co (Los Angeles, CA)
  18. Friends and Family (Oakland, CA)
  19. Broken Shaker (Miami, FL)
  20. The Dead Rabbit (New York, NY)
  21. Employees Only (New York, NY)
  22. El Pequeño Bar (Montréal, Québec)
  23. Herbs & Rye (Las Vegas, NV)
  24. Overstory (New York, NY)
  25. Dear Irving (New York, NY)
  26. The Keefer Bar (Vancouver, British Columbia)
  27. Jewel of the South (New Orleans, LA)
  28. Amor y Amargo (New York, NY)
  29. Selva (Oaxaca de Juárez, Oaxaca)
  30. El Gallo Altanero (Guadalajara, Jalisco)
  31. Sabina Sabe (Oaxaca de Juárez, Oaxaca)
  32. Raised by Wolves (San Diego, CA)
  33. Service Bar (Washington, DC)
  34. Double Chicken Please (New York, NY)
  35. Hanky Panky (Ciudad de México)
  36. Café de Nadie (Ciudad de México)
  37. Sweet Liberty (Miami, FL)
  38. Kaito del Valle (Ciudad de México)
  39. La Factoría (San Juan)
  40. Zapote Bar (Playa del Carmen, Quintana Roo)
  41. Civil Liberties (Toronto, Ontario)
  42. Thunderbolt (Los Angeles, CA)
  43. Dante (New York, NY)
  44. Baltra Bar (Ciudad de México)
  45. Café La Trova (Miami, FL)
  46. Kumiko (Chicago, IL)
  47. Katana Kitten (New York, NY)
  48. Licorería Limantour (Ciudad de México)
  49. Handshake Speakeasy (Ciudad de México)
  50. Attaboy (New York, NY)

Image: Hello I’m Nik on Unsplash

Sazerac cocktail and mixing glass on bar
by David Klemt David Klemt No Comments

National Cocktails: Canada & America

National Cocktails: Canada & America

by David Klemt

Sazerac cocktail and mixing glass on bar

We’re taking a look at two cocktails that can trace their roots to America and Canada for this year’s National Cocktail Day.

Further, KRG Hospitality has a headquarters in each country. So, we’ll be focusing on the cocktails for which Canada and America are known.

Celebrate National Cocktail Day, March 24, with the recipes below. Cheers!

Canada’s Official Cocktail

Let’s kick things off with Canada. There’s no cocktail with as close an association to the Great White North as the Caesar.

In fact, it’s Canada’s national cocktail. So ubiquitous, it’s woven into the fabric of Canadian pop culture.

Consider this Letterkenny exchange as exhibit A:

Darryl: “I’d have a Bloody Caesar.”

Wayne: “Do you wanna know what? I’d have a Caesar, too.”

Squirrely Dan: “I could have a Caesar if you guys are havin’ Caesars.”

Darryl: “Hard to see a Caesar and not want a Caesar.”

Wayne: “That’s actually how they market Caesars.”

According to cocktail lore, the city of Calgary and province of Alberta get to call themselves the home of the Caesar.

Disputed Origins

As the story goes, Walter Chell invented the cocktail in 1969. Chell was a restaurant manager at the Calgary Inn, now a Westin property.

Oh, wait. There’s also Walter Winchell and the Smirnoff Smiler cocktail. Tracing mentions back to 1953, this drink is made with vodka, tomato juice, clam juice, and Worcestershire sauce.

Hang on… In 1959, Charles Addams—y’know, the creator of the Addams Family—said he created the Gravel Gertie in Manhattan, New York. This cocktail calls for vodka to be mixed with tomato juice, clam juice, and Tabasco sauce.

Well, Chell was onto something when he combined every ingredient in the Smiler and Gertie. To me, this an original that stands far above any perceived predecessors.

Chell also crafted the recipe using a “rule of four”:

  • one shot of vodka;
  • two dashes of hot sauce;
  • three dashes of salt and pepper; and
  • four dashes of Worcestershire sauce

Prepare a glass with a celery salt or salt and pepper rim. Add ice, then add the above ingredients. Top with Caesar mix (Clamato juice, these days), and garnish with a celery stock and lime.

America’s Unofficial Cocktail

Now, onward to America. So, we don’t have an official national cocktail here. Clearly, our neighbors to the north know how to have more fun.

We have a native spirit—bourbon—but that’s where it ends.

However, we do have New Orleans. And in New Orleans we have the birthplace of American hospitality.

We have something else in New Orleans. In 2008, the Louisiana state senate passed a bill that named an official cocktail for the city.

That cocktail? The Sazerac.

Two Bases, One Drink

Cocktail historians will tell you that there are essentially two recipes for the Sazerac. They’ll also tell you that the origins of this cocktail are under dispute.

Are you beginning to see a pattern with cocktail history? It’s never clear, is it?

First, let’s address the original, assuming it’s America’s first (or at least oldest known) cocktail. From the 1850s to 1870s, it was made with Cognac. And not just any Cognac, Sazerac de Forge et Fils.

Depending on who you ask, either bar owner Aaron Bird or Antoine Amedie Peychaud invented the Sazerac. The cocktail recipe includes two dashes of Peychaud’s Bitters, so it’s easy to understand why some credit Peychaud with creating this drink.

Then, there’s the version that took off in the 1870s. Again, depending on the source, either American tastes changed or a phylloxera outbreak affected Cognac production. Perhaps both are true, converging to alter the Sazerac recipe.

Either way, rye whiskey replaced absinthe, and Herbsaint replaced the absinthe. Some bartenders also substitute bourbon for the rye.

The Recipe

It’s not difficult to make a Sazerac, just like it isn’t difficult to find one in New Orleans.

You’ll need two Old Fashioned (aka rocks) glasses, or one Old Fashioned and a mixing glass.

Rinse a chilled glass with absinthe or Herbsaint, and add ice. In the mixing glass or second glass, add ice, two ounces of Cognac, rye whiskey or bourbon, a half-ounce of simply syrup, and three dashes of Peychaud’s Bitters. Stir until well chilled.

Before straining, discard the ice and any excess absinthe or Hersaint from the prepared glass. Now, strain into prepared glass, express a lemon peel, and use that peel as garnish.

Alternatively, you can split the base and do Cognac and rye or bourbon, paying homage to each version of the Sazerac.

Image: Johann Trasch on Unsplash

Peace Bridge red double-helix pedestrian bridge in Calgary, Alberta, Canada
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Restrictions: What’s Different in Alberta?

Restrictions: What’s Different in Alberta?

by David Klemt

Peace Bridge red double-helix pedestrian bridge in Calgary, Alberta, Canada

According to Alberta medical officers, it’s time to begin the transition away from Covid-19 mandates and restrictions.

Taking a transition approach means that some restrictions will remain in place for at least the next several days.

However, operators have reason to be cautiously optimistic regarding the lifting of “nearly all” current restrictions.

What’s Different Now?

Alberta’s chief medical officer of health, Dr. Deena Hinshaw, says Alberta is now in a transition period. The province is attempting to adjust from a pandemic response to an endemic response to Covid-19.

In other words, Alberta authorities are seeking a return to pre-pandemic normalcy. Of course, lifting mandates and adjusting to “normal” life will take time, cautions Dr. Hinshaw.

Premier Jason Kenney says that “now is the time to begin learning to live with Covid.”

Clearly, the biggest change came in the repealing of Alberta’s vaccine passport program. Also known as REP, the Restrictions Exemption Program is no longer in use.

However, a number of restrictions will remain in place until at least March 1.

Restaurant, bar, pub, nightclub, and cafe operators are subject to the following:

  • Capacity limit of 500 for venues with fire occupancy of 500 to 999.
  • Capacity limit of 50 percent for businesses with fire occupancy of 1,000 or more.
  • Liquor service must end at 11:00 PM.
  • In-person service must end at 12:30 PM.
  • Mingling between tables is prohibited.
  • Maximum party capacity per table is ten people.
  • Unfortunately, dancing, darts, billiards, and other “interactive activities” are prohibited.

In better news, both indoor and outdoor dining are permitted. Also, venues with fire occupancy under 500 are no longer subject to capacity limits.

What Else is Changing?

Currently, Alberta is in Step 1 of the province’s plan to ease Covid-19 mandates, restrictions, and measures.

Should all go well—hospitalizations trending downward—the province will enter Step 2:

  • Indoor mask requirement lifted.
  • Indoor and outdoor social gathering restrictions lifted.
  • All large venues and entertainment venues will have capacity restrictions lifted.

Of course, Step 3 will represent the greatest move toward a return to normal life in Alberta. However, there is no date set against entering Step 3.

Should the targets that will trigger the final step in the three-step plan be hit, mandatory isolation will transition from a requirement to a recommendation. In addition, Covid-19-specific continuing care measures will be removed.

Given the possibility of major restrictions lifting in just under a week, operators, their team members, and the guests they serve have reason to be optimistic.

Image: Denisse Leon on Unsplash

Granville Street in Vancouver, British Columbia, Canada, at night
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Restrictions: What’s Different in BC?

Restrictions: What’s Different in British Columbia?

by David Klemt

Granville Street in Vancouver, British Columbia, Canada, at night

While face mask and proof-of-vaccine requirements remain in place throughout British Columbia, some Covid-19 restrictions are no more.

“By following the science and looking out for each other, we are now in a position to carefully ease many COVID-19 restrictions,” said BC premier John Horgan last week.

Per reports, the second-dose vaccine rate of eligible residents in BC is over 90 percent. That, along with a dip in hospitalizations, are likely contributing to this easing of restrictions.

Premier Horgan denies that the “Freedom Convoy” protests influenced BC’s decisions.

What’s Different Now?

The most relevant news pertaining to hospitality operators impacts capacity and guest behavior.

Restaurant, bar, lounge, and nightclub operators have reason to feel a sense of relief. This is due to several favorable changes to Covid-19 restrictions.

First, capacity restrictions for the venues above have been lifted. This return to 100-percent capacity is likely the most welcome change for BC operators.

Second, table limits. In short, those are also no more. No longer are parties limited to six guests or less.

The third restriction (at least the order I’m addressing them) is the return of mingling. That’s right—guests can socialize amongst other tables once again.

Fourth, there’s no longer a Covid-19-specific limit dictating liquor service hours.

Fifth, down goes the plexiglass. Operators can remove their plexi barriers. However, given the past two years of restriction whiplash, it could be smart to store and not toss our or destroy them.

Finally, and this is perhaps the greatest return to a semblance of normalcy, dancing is back. For nearly two years, the province of BC has been the town in Footloose. But as of now, guests are free to dance once again.

It’s important to note that workers will follow their employers’ Covid-19 safety plans.

What Else is Changing?

Unfortunately, what’s in the pipeline for further easing of restrictions is unknown.

Currently, masks are required in a restaurant, bar, lounge, or nightclub when a guest isn’t in their seat. Also, guests must still present the BC Vaccine Card for scanning to gain entry. Two doses of an approved vaccine are required.

BC’s Provincial Health Officer, Dr. Bonnie Henry, will “revisit” current restrictions on March 15. Dr. Henry will do so again in mid-April.

So, while there is cause for some optimism that life could return to normal in BC by April or May, we simply do not know for sure. Indeed, should another Covid-19 variant lead to a rise in infections and hospitalizations, now-lifted restrictions could conceivably return.

However, while Dr. Henry believes as we do that “hope is not a strategy,” there is room for optimism. With capacity, mingling, and dancing restrictions lifted, operators can once again offer guests a sense of normal life.

Image: Jerry Coli from Pixabay

Toronto, Ontario, Canada skyline viewed from harbor at dusk
by David Klemt David Klemt No Comments

Restrictions: What’s Different in Ontario?

Restrictions: What’s Different in Ontario?

by David Klemt

Toronto, Ontario, Canada skyline viewed from harbor at dusk

Changes involving Covid-19 restrictions have come to the province of Ontario, Canada, the location of the global KRG Hospitality headquarters.

Las Vegas is home to KRG’s American headquarters. The state of Nevada eliminated its indoor mask mandate nearly three weeks ago.

Ontario’s restriction-easing plans should be welcome news for current and future operators throughout the province.

Per Ontario premiers, these changes are due to a reduction in Covid-19 hospitalizations. Reportedly, further pandemic-related changes are due today, with more coming down March 14.

What’s Different Now?

Most notably, indoor capacity restrictions for restaurants and bars are no longer in place. However, this is somewhat nuanced at the moment.

Per the current reading of Ontario’s public health measures, only venues that require proof of vaccination may return to 100-percent indoor capacity.

As the order reads, the following businesses are subject to “no capacity limits [indoors]…where proof of vaccination is required:

  • restaurants, bars and other food or drink establishments without dance facilities;
  • casinos, bingo halls and other gaming establishments;
  • cinemas; and
  • indoor areas of other settings that choose to “opt-in” to proof of vaccination requirements.

Operators of stadiums, arenas, and concert venues may now operate at 50-percent capacity

Nightclubs and other establishments that serve food and/or drink and have “dance facilities” and also require proof of vaccination are restricted to an indoor capacity of 25 percent.

Again, these changes are reportedly temporary. The province’s premiers and several outlets report that Covid-19 restrictions will be lifted further in March.

What Else is Changing?

Clearly, the biggest planned change involves proof of vaccination.

The province of Ontario appears to be embracing optimism. Additionally, one can argue that premiers are choosing to reward Ontarians for helping drive down hospitalization rates.

Should the plan be followed, should hospitalizations not increase, proof-of-vaccination requirements will be lifted March 1. In fact, Ontario’s mandatory vaccine passport system will also be lifted on March 1 if everything goes to plan.

Additionally, indoor capacity limits will return to 100 percent “in all indoor public settings.”

However, on March 1, face coverings and the “active/passive” screening of guests will remain in place. Also, operators can choose to require proof of vaccination voluntarily.

Reporting on what to expect by March 14 is murky. Analyzing Ontario premier Doug Ford’s words regarding these developments may offer a clue.

“We will need to keep masking in place for just a little bit longer,” said Ford. Perhaps Ontario can expect mask requirements to be lifted by or on March 14.

Of course, a certain level of skepticism regarding Ontario’s restriction-lifting plan is justified. Optimism is healthy but it’s not a business strategy.

That said, allowing for cautious optimism, the province’s plans is still welcome news. If Ontarians remain patient and vigilant, life and operations may return to normal in just three to four weeks.

Image: Alex on Unsplash

Four disposable medical face masks in a pile
by David Klemt David Klemt No Comments

Current Restrictions: Canada

Current Restaurant Restrictions: Canada

by David Klemt

Four disposable medical face masks in a pile

KRG Hospitality’s headquarters is in Toronto but we operate in three major Canadian markets: Alberta, British Columbia, and Ontario.

I was visiting the Toronto office, traveling from Las Vegas, when new restrictions were announced due to Omicron.

By the time I landed, I knew each province in which we operate would be at least discussing possible restrictions.

Alberta

The following restrictions apply to restaurants, bars, nightclubs, cafes, and pubs participating in the Restrictions Exemption Program (REP):

  • No more than ten people may be sat at one table.
  • Alcohol service must terminate by 11:00 PM.
  • These businesses must close by 12:30 AM.
  • Billiards, dancing, darts, and other “interactive” activities are prohibited.

As a refresher, the REP program requires operators to require patrons age 12 and above to:

  • provide proof of vaccination, negative results from a test taken within 72 hours of service, or medical exemption; and
  • comply with mandatory masking.

Alternatively, operators can comply with all restrictions as outlined in Alberta’s public health orders.

However, businesses not participating in REP face the restrictions below:

  • Indoor dining is prohibited.
  • Outdoor dining is permitted. No more than six people may sit at the same table.
  • Groups are restricted to one household or two close contacts (for those living alone).
  • Alcohol service must terminate by 10:oo PM. Consumption must conclude by 11:00 PM.

British Columbia

At the time of publication, restaurants, cafes, and pubs can still offer both indoor and outdoor dining.

However, there are restrictions in British Columbia:

  1. No more than six people may be sat at one table.
  2. When not seated, guests must wear face masks.
  3. Guests may not move to between tables, visit other tables, or dance.
  4. Indoor gatherings are limited to 10 people (down from 25).
  5. Outdoor gatherings are limited to 25 people (down from 100).
  6. Operators must maintain physical distancing or barriers between tables.
  7. Alcohol can be served during normal service hours.

Unfortunately, bars, nightclubs, and lounges aren’t facing restrictions, they’ve been forced to close.

These restrictions and closures will remain in place until January 18, 2022. Exceptions include bullet points 2 and 3, which are expected to remain until January 31, 2022.

Ontario

As of December 19, 2021, restrictions that impact restaurants, bars, strip clubs, and other food or beverage venues went into effect:

  • Capacity reduced to 50 percent.
  • No more than 10 people may sit at one table.
  • Guests must remain seated. Only performers or workers may dance.
  • Venues must close for indoor and outdoor dining and drinking by 11:00 PM. However, businesses may offer delivery and takeout past that time.
  • On-premise alcohol sales are prohibited after 10:00 PM. Consumption of alcohol on-premises is restricted after 11:00 PM.

It’s crucial that operators and leadership teams remain up to date on their province’s (and city’s) restrictions. At the start, 2022 will be challenging but opportunities for recovery will present themselves

Image: Markus Winkler on Unsplash

Canadian flag in downtown Toronto, Ontario, Canada
by David Klemt David Klemt No Comments

Canadian On-premise Sales Stabilizing

Canadian On-premise Sales Stabilizing

by David Klemt

Canadian flag in downtown Toronto, Ontario, Canada

A report from Restaurants Canada and Nielsen CGA shows that on-premise sales are steadying and, in some provinces, growing.

In fact, with the exception of Alberta being slightly down, Canada’s nationwide sales velocity looks promising in comparison to 2019.

Overall, Canada’s on-premise velocity is on the rise. Let’s take a look at how the three main provinces KRG Hospitality services are performing.

Alberta

To say that Alberta is down is a tad misleading. The province’s performance is nearly on par with 2019.

In comparison to 2019, Alberta is just -1 percent below in velocity levels.

Now, in comparison to 2020, the province is +46 percent. However, 2019 is a far more accurate gauge of performance.

While being down one percent is on the surface negative, growth in Calgary and Edmonton is highly encouraging.

In the week to August 21, Calgary’s velocity rose +4 percent, while Edmonton grew +10 percent. Those two cities are responsible for overall growth in velocity in Alberta of +4 percent.

Should the upward trend continue, Alberta will match and surpass 2019 quickly.

British Columbia

Of the three key provinces in which KRG Hospitality operates, BC is the second-best performing in comparison to 2019. Against 2020, BC is the third top performer.

Per Restaurants Canada and CGA, BC velocity is up +12 percent in comparison with 2019’s sales. The province is up +33 percent when compared to 2020.

In Vancouver, velocity is flat rather than experiencing negative growth. Any negative trends, according to the Restaurants Canada and CGA report, is coming from Victoria. That city is down -6 percent.

Ontario

Of our key Canadian markets, Ontario is performing the best overall.

Compare velocity to 2020 and the province is up +48 percent. In comparison to 2019, Ontario’s velocity is up +13 percent.

One can attribute current growth to Toronto. The Ontario city’s performance in the week to August 21 is +4 percent.

Canada

According to the report, sales velocity in Canada is up +2 percent overall.

Compare the country’s overall performance against 2020 and 2019, and Canada is trending upward. The nation’s on-premise velocity is up +41 percent in comparison to 2020 and +11 percent against 2019.

Clearly, the expectation is for the country’s on-premise performance to experience further growth as consumers return to in-person dining and restrictions loosen.

However, it’s important for operators to not simply return to pre-pandemic operations. Consumer behaviors have changed and many pandemic-driven habits—delivery, for example—are now permanent.

Further, now’s the time for those considering proceeding with plans to open restaurants, bars and hotels to move forward. In fact, Travis Tober, the guest from our milestone 50th episode of Bar Hacks, believes there’s no better time than now to open a hospitality venue.

Image: Lewis Parsons on Unsplash

by David Klemt David Klemt No Comments

2021 Technomic Outlook: Canada

2021 Technomic Outlook: Canada

by David Klemt

Technomic has been providing the foodservice industry with valuable insights on a global level for five decades.

The research and consulting firm has been one of my go-to information sources for at least ten years.

A few weeks ago, I reviewed Canadian food delivery trends from multiple sources. This week, I’m taking a look at Technomic’s foodservice predictions for Canada.

Unprecedented and Unpredictable

First things first: predictions are best guesses. Technomic’s approach is scientific and data-driven but it’s important to approach any prediction with caution.

As the firm itself points out in their 2021 foodservice report, the global pandemic has thrown the industry into unprecedented territory.

It seems the only predictable element related to Covid-19 is that restaurants, bars and other hospitality businesses will bear the brunt of closures and restrictions.

That said, I trust Technomic to lead the industry through unpredictable, unprecedented moments in time.

5 Key Trends

Technomic has made five predictions for foodservice in Canada.

  1. 2021 will represent the start of financial recovery for foodservice. Technomic predicts moderate sales growth this year, below levels of 2019. However, limited-service restaurants are expected to perform better than their counterparts and return to 2019 revenue levels. Not surprisingly, Technomic expects full-service restaurants to be the most challenged.
  2. Operators will make their stances on social issues known. Multiple sources say today’s consumers want transparency from the brands they support. They want to know what company’s believe about climate change, food insecurity, social inequalities, diversity and hiring practices, fair pay for employees, and other issues. Technomic expects more operators to “double down” on transparency.
  3. On-premise operations will invest in off-premise business models. Again, multiple sources have reported that significant percentages of consumers are uncertain or uncomfortable about returning to restaurants and bars for in-person dining and drinking. Technomic expects operators to invest in smaller dining rooms so they can offer more limited-contact and contactless options to guests: walk-up ordering windows, multiple drive-thru lanes, designated curbside pickup locations, and in-store pickup and grab-and-go stations. The firm also expects more operators to embrace first-party/direct delivery, along with technologies like mobile ordering and geofencing.
  4. Comfort, quirkiness and indulgence. Technomic expects comfort foods to continue to perform well and encourages operators to get creative—even quirky—with this category. They caution that health will still be a focus of many guests and suggest that some operators will “disguise better-for-you meals as indulgent.”
  5. Our home and native land. Hyperlocality will play a crucial role in driving traffic given the travel restrictions imposed throughout Canada. Operators will likely forge relationships with local farms to attract local visitors to their venues. Technomic expects to see grassroots movements promoting support for small regional chains and local independent operations to gain traction.

Bring it all Together

Chasing trends can be a fool’s errand. Not every prediction made by Technomic will work for every restaurant or bar in Canada.

Just like Technomic collects and analyzes industry data, operators must review their guest, sales and operations data to make informed decisions. This is another reason it’s crucial to own the guest journey in its entirety.

Click here to view Technomic’s “2021 Canadian Trends Outlook” webinar.

Image: Hermes Rivera on Unsplash

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