Canada | KRG Hospitality

February 10, 2021by 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.

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.
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.
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.
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.”
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

January 28, 2021by David Klemt David Klemt No Comments

Current Restaurant and Bar Restrictions: Toronto, Calgary, Vancouver

Current Restaurant and Bar Restrictions: Toronto, Calgary, Vancouver

by David Klemt

For more than a decade, KRG Hospitality has turned hospitality industry visions into reality throughout Canada.

Currently, we operate in Toronto, Calgary and Vancouver and the surrounding areas.

We’ve reviewed and gathered the current Covid-19-based restrictions in Ontario, Alberta and British Columbia to help current operators and those considering taking the next steps in their journey toward opening their own businesses.

To book a 15-minute introductory call to discuss your project and how we can help you realize your vision, click here.

Toronto

On January 25, the province of Ontario officially extended the current state of emergency (which includes a stay-at-home order) by 14 days by Premier Doug Ford. Had Premier Ford not extended the emergency order, it would’ve expired Tuesday of this week. Unless extended again, it will expire February 11.

What this means for restaurants, bars and other types of F&B establishments is that indoor and outdoor dining are banned currently. Delivery, takeout and drive-through service are permitted.

Individuals face $750 fines (up to a maximum of $100,000) and corporations could be hit with $1,000 fines (up to a maximum of $500,000 for a director or officer) for a violation of emergency orders.

When the state of emergency expires or is otherwise rescinded, Ontario is expected to revert to the regulations found within the Reopening Ontario Act (currently suspended). Should Ontario find itself immediately colour-coded Grey, the current restrictions on restaurants and bars will remain identical: only delivery, takeout and drive-through service will be allowed.

Among other restrictions, a Red control level means restaurants are restricted to indoor dining capacity of ten people, outdoor dining is permitted, customers must be seated and two metres apart from one another, liquor may only be sold within a 9:00 AM to 9:00 PM window, face coverings must be worn except when eating or drinking, and nightclubs may only operate as a restaurant or bar.

Orange level restrictions include a 50-person capacity limit, a maximum of four people per table, customers must be screened before entry, liquor may only be sold between the hours of 9:00 AM and 9:00 PM, establishments must close by 10:00 PM, and gentlemen’s clubs must remain closed.

The Yellow control level is marked by the following restrictions: no more than six people may be seated at the same table, liquor may only be sold between 9:00 AM and 11:00 PM, establishments must close by midnight, music levels may not exceed that of a “normal conversation,” and all seated patrons must provide contact information.

Green control doesn’t mean everything is back to pre-pandemic “normalcy.” Tables must still be at least two metres apart, customers must be seated, face coverings must be worn except when eating or drinking, no buffet-style service is permitted, nightclubs may only operate as restaurants or bars, and contact information for at least one person per party must be collected. Restricted dancing, singing, performing and karaoke (no private rooms) are permitted.

Calgary

On December 13, 2020, indoor and outdoor dining was banned throughout Alberta. Current Covid-19-related public health measures and restrictions have been extended until further notice. The province’s restrictions affect restaurants, bars, cafes, pubs, and lounges (and other businesses, of course).

Only delivery, takeout and curbside pickup are permitted in Alberta. However, this is expected to change on February 8, 2021.

Hotels, motels and lodges are open but may not offer access to gyms, pools or spas. Indoor dining is banned but room service permitted. Casinos must remain closed.

Movie theatres, bowling alleys, pool halls and other entertainment businesses may not open for business.

If Alberta returns to the previous relaunch strategy, the province will be subject to a three-stage reopening. However, the document hasn’t been updated since June 2020.

Update: Alberta allowed restaurants and bars to reopen for in-person services yesterday, February 8. Indoor alcohol service must end by 10:00 PM, and indoor dining service must cease by 11:00 PM. Contact information from one person of the dining party must be collected, there’s a limit of six people maximum per table and each individual must be from the same household. Alternatively, the maximum per table for an individual living alone is there two close contacts. Tables must be spaced two metres apart and no entertainment is permitted.

Vancouver

British Columbia is far less restrictive than Ontario and Alberta, at least at the moment. The restrictions in place currently affect restaurants, bars, cafes, cafeterias, coffee shops, lounges, and tasting rooms. Nightclubs, however, must remain closed.

Requirements

Unless a physical barrier is in place, customers not in the same party must be at least two metres away from one another.
No more than six people may be seated at the same table or booth, even if they’re members of the same party.
If seated at a counter, customers must be two metres apart unless they’re in the same party or physical barriers are in place.
No more than six customers of the same party may be seated at a counter less than two metres from one another.
Businesses that offer self-serve food or non-alcohol drink stations must: ensure alcohol-based hand sanitizer or handwashing facilities are “within easy reach”; signage reminding customers to wash or sanitize their hands before touching anything on the stations and to maintain two metres from other customers must be present; utensils and high-touch surfaces at the stations must be cleaned and sanitized “frequently.”
Dance floors must be closed, and karaoke, singing, jam sessions, open mic sessions, and dancing are prohibited.
Background music or sounds may not be amplified or exceed the volume of a “normal” conversation.

Further details can be found here.

Last updated: February 9, 2021. Please note that Covid-19 guidance, restrictions and protocols are subject to swift change. One should monitor the country, provinces and cities for the latest updates.

Image: James Wheeler from Pexels

December 9, 2020by David Klemt David Klemt No Comments

Significant, Permanent Restaurant Closures Expected to Rock Canada Unless Situation Improves

Significant, Permanent Restaurant Closures Expected to Rock Canada Unless Situation Improves

by David Klemt

Industry surveys continue to reveal how dire the situation is for operators.

On December 8, Restaurants Canada, a non-profit that represents and advocates for the Great White North’s restaurant industry, shared the results of a survey they had conducted between November 26 and December 4. A total of 511 surveys representing 3,000 restaurants were completed.

According to Restaurants Canada, the nation’s foodservice industry consists of 97,500 establishments ranging from QSRs to bars and full-service venues.

More than eight out of ten survey respondents answered that they are either barely staying afloat or are operating at a loss. Drilling deeper, significantly more restaurants are operating at a loss—65 percent of survey respondents fall into this category. Just 19 percent of restaurants represented by survey respondents are able to break even.

That’s 2,400 restaurants of 3,000 struggling to survive, and 78,000 restaurants out of 97,500, assuming the survey sample size accurately represents the overall industry in Canada.

To understand the long-term effects of government-mandated restrictions and shutdowns, one has only to digest another startling statistic: Restaurants operating in the red aren’t expecting to return to profitability for a minimum of 12 months.

Under optimal conditions, the average Canadian restaurant operates on razor-thin margins. Per Restaurants Canada, restaurants keep just five percent of every $10 in sales on average, or 50 cents. The industry is Canada’s fourth-largest employer (it’s number five in the United States, for comparison), accounting for 1.2 million jobs, 58 percent of which are held by women. Over thirty percent of owners, operators and staff belong to a visible minority, further illustrating how important restaurants are to diversity and the economy; half of all restaurants in Canada are operated by immigrants. Just like in the America, restaurants are the first employer for most Canadians.

The industry is crucial to Canada, but this vital resource is under serious threat. One of those threats comes from lawmakers whose restrictions are making it much more difficult for operators to wring any profits out already miniscule margins. Much like the situation afflicting the industry in the United States, the situation is going to get worse in short order without government relief.

Restrictions are simply nails in coffins unless they’re accompanied by relief.

“Our members are seeking a new year’s resolution from government, not only to support their survival but our industry’s vital role building back a stronger, more resilient Canada,” said Todd Barclay, president and CEO of Restaurants Canada. “Restaurants Canada is calling for a national working group to pave the way for the foodservice sector’s revival, building on the commitment in the federal government’s 2020 Fall Economic Statement to provide targeted, sector-specific support to restaurants and other hardest hit businesses.”

That national working group, according to Restaurants Canada, should focus on providing businesses being affected by government-mandated restrictions with “sufficient, efficient and effective aid”; developing campaigns that make it clear to Canadians that restaurants are capable of safely and reliably providing safe meals; promoting delivery and takeout as a viable way for the public to support restaurants; connecting with operators to understand the industry’s needs and pain points to ensure they’re in as strong a position as possible when entering the post-pandemic economy.

The next six months are crucial to the survival of Canadian restaurants. If things don’t improve, should the government not address the industry’s situation and provide relief, 48 percent of single-unit operators surveyed by Restaurants Canada indicated they expect to close within six months. That number jumps to 56 percent for multi-unit operators, who expect to close at least one of their locations (also within six months).

Restaurants Canada is asking for anyone who supports the formation of a dedicated national working group to contact their Member of Parliament via this link.

Photo by Marcus Urbenz on Unsplash

December 7, 2020by David Klemt David Klemt No Comments

LCBO and SkipTheDishes Hit Pause on Partnership After Public Lashing

LCBO and SkipTheDishes Hit Pause on Partnership After Public Lashing

by David Klemt

The Liquor Control Board of Ontario (LCBO) faced outrage over the weekend, ultimately deciding to “pause” a controversial partnership after receiving a public lashing.

In case you missed it, the LCBO and SkipTheDishes announced on December 4 that they had partnered to offer home deliveries of beer, wine and spirits in Toronto. For those who are unfamiliar, SkipTheDishes is a food delivery service similiar to Grubhub that serves Canada. In fact, SkipTheDishes pulled out of the United States in 2020 and their services were handed over to Grubhub.

Just two days after the partnership was made public, it was announced by the LCBO that, due to “direction from the Ontario Government,” the deal had been suspended.

Restaurants and bars in Ontario have been allowed to offer alcohol for delivery and takeout since March via an emergency order due to the Covid-19 pandemic, shutdowns, and utter carnage that has befallen the industry. Many would like for the emergency order to be made permanent.

To understand the outrage, one must realize that restaurants and bars in Ontario have been operating under forced lockdowns. Premier Doug Ford announced the lockdown—which affected Toronto and Peel Region—on November 20. It went into effect a minute past midnight on November 23. No end date accompanied the mandate.

When the LCBO—which is able to make purchases and sales of beverage alcohol at lower wholesale prices than restaurant and bar owners and operators—arranged the deal with SkipTheDishes, those who operate in Toronto and Peel interpreted the move as undercutting their struggling businesses. Alcohol delivery and takeout is one of the only ways operators in those areas can generate any revenue and give themselves a fighting chance to keep from closing their doors permanently.

In terms of optics, the situation did anything but paint the LCBO and SkipTheDishes in a positive light. The LCBO, for those outside Canada, is what’s known as a Crown Corporation. That is, it’s entirely owned by the Sovereign of Canada—a state-owned enterprise. One could argue that it appeared the government in Ontario hobbled the LCBO’s competition—restaurants and bars—in an effort to boost their revenue and profits.

A tweet by operator and author Jen Agg regarding the timing of the partnership read, in part, “It is timed to UNDERCUT restaurants that are already bleeding out. It is timed to benefit companies that DONT NEED ANY HELP! It is timed to devastate restaurants and they damn well knew all of this.” (Emphasis Jen Agg’s.)

While the “pause” of the LCBO-SkipTheDishes partnership is a victory of sorts, countless operators—and likely customers and other small business supporters—would like to see this arrangement permanently dissolved. Several tweets have mentioned that the LCBO has increased profits during the pandemic, while others have pointed out that the Crown Corporation could help restaurants and bars by offering them wholesale pricing to reduce costs.

For now, operators in Ontario will need to keep their eyes and ears open, remaining vigilant should the LCBO and SkipTheDishes press play on their deal again.

Photo by Talha Atif on Unsplash