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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 13, 2021by David Klemt David Klemt No Comments

The 2021 Restaurant Start-Up Cost Guide & Checklist is Here! Download Today

The 2021 Restaurant Start-Up Cost Guide & Checklist is Here! Download Today

by David Klemt

This guide gives anyone starting a restaurant, bar, brewpub or other F&B venue the best chance for success in 2021.

Hospitality has endured a nearly endless thrashing for almost an entire year. The calendar has ticked over to 2021 but still, the pummeling doesn’t have an end date.

However, the industry has endured and continues to do so. We don’t know when Covid-19 will cease presenting a threat but we know this: there’s no end to the fight in those in the hospitality community.

Veteran and neophyte owners and operators are still going to open new venues in 2021, pandemic be damned. That fact means it’s more crucial than ever before that owners are positioned for success.

The KRG Hospitality 2021 Restaurant Start-Up Cost Guide & Checklist aims to structure the process of opening a restaurant or bar to maximize an owner’s opportunity. The guide contains 2021 start-up costs, renovation costs, scaled costs, an in-depth milestone checklist, and more that will help readers understand the process and keep them on track to go from concept to opening doors as smoothly as possible.

Click here to download the guide and start down the path of restaurant or bar success today.

January 11, 2021by David Klemt David Klemt No Comments

Serve Up a Slice of Nostalgia: Viennetta Returns

Have a Slice of Nostalgia: The Return of Viennetta

by David Klemt

A British confection launched in the ’80s is headed back to the United States.

Wall’s brought what’s considered by some the first-ever branded ice cream dessert—Viennetta—to the world almost 40 years ago. The British frozen dessert and ice cream producer, owned by Unilever, launched the legendary treat in 1982.

Viennetta is said to be based on a multi-layered pastry known as mille-feuille. The original Wall’s product consists of layers of vanilla ice cream and compound chocolate that create the dessert’s signature wavy top.

While Viennetta was a product of Wall’s in Europe, it came to America under Unilever’s Breyers label. At one point in the ’90s, the product disappeared from the United States, though it maintained a presence throughout Europe, Australia, New Zealand, and elsewhere.

As an ’80s kid, I remember seeing Viennetta commercials late in the decade, or perhaps I saw them in the early ’90s. Either way, the images of what passed for elegance and sophistication back then informed me that Viennetta must be a “fancy” dessert. I mean, c’mon—it was served on a silver platter!

Alas, I never had the opportunity to taste what I could only assume back then was an opulent dessert before it was so cruelly whisked out of the country. But that will change this year.

Unilever is bringing at least the original vanilla flavor back to the States in 2021 under their Good Humor brand. Back in the ’80s, Viennetta wasn’t available solely at supermarkets—it was also sold at KFCs and Pizza Huts. I’ve found no announcements from Unilever or Good Humor that Viennetta will be available through a partnership at any restaurants this year, but it would make sense.

Can you experience nostalgia if you’ve never actually owned, enjoyed or consumed a product in the past personally? Apparently the answer is yes, because when I saw Viennetta was returning to America my first thought was, “Finally—I’ll have my chance,” followed by a flood of images from my childhood and early teen years.

Should I be ashamed? Maybe. But I’m not. And I know I’m not alone. And I know something else: Operators looking to leverage nostalgia, particularly if they’re ’80s- or ’90s-themed or feature programming around those decades, should be excited about this news.

Image: Wikimedia Commons

December 31, 2020by David Klemt David Klemt No Comments

Dry January Will Be Different in 2021

Dry January Will Be Different in 2021

by David Klemt

Tomorrow marks the start of the first Dry January we’ve ever experienced under stay-at-home shutdowns and bar, restaurant and nightclub restrictions.

Like Veganuary—remember way back to yesterday when we wrote about it?—the movement as we’ve come to know can be traced back to the UK. People have chosen t abstain from alcohol in January for decades but Dry January really took off after the trademark was registered by a non-profit called Alcohol Change.

Understandably, many operators have taken issue with Dry January. Taking a hit to the bottom line for a month (or more) because of a reduction in alcohol sales isn’t an exciting proposition.

However, Dry January may be different this year. The convergence of a number of consumer behaviors driven by restricted access to restaurants and bars may present an opportunity.

Throughout most of 2020 we’ve been inundated with reports about unprecedented boosts in online alcohol sales. Premium and ultra-premium spirits grew at a faster rate than they had pre-pandemic. Operators have been forced to pivot, relying heavily on delivery, (somewhat) traditional takeout, and curbside pickup.

Put those all together but substitute premium spirits for premium alcohol-free options and there’s the potential for operators to generate revenue directly linked to zero-proof sales.

One of the keys to succeeding with zero-ABV drinks is presentation. Many alcohol-free brands are dedicated to elevating the category, meaning they can be treated the same as their low- and full-proof counterparts. Curated zero-proof drink kits that include quality modifiers, mixers, garnishes and drinkware can help generate sales. Post quick how-to videos to social media showing a member of the bar team building zero-proof cocktails to create interest.

Those are just two ideas. It shouldn’t be difficult for operators to pivot and offer alcohol-free options that are authentic to their brand and therefore resonate with their guests.

Operators that nail their Dry January menu programming lay the groundwork for succeeding with the alcohol-free category throughout the rest of the year. We finally live in an age where sober, sober-curious and intermittently abstinent consumers don’t feel uncomfortable visiting a bar. Make them feel welcome. Operators who alienate these guests will drive them straight to their competitors to ring their registers instead.

Seedlip is probably the best-known within the alcohol-free category but more premium brands are emerging. Operators should familiarize themselves with the following: Lyre’s (which crafts zero-proof spirits that taste like their traditional counterparts), Wilderton (which uses a distillation method that never introduces alcohol), and Shoki (which showcases African and Caribbean heritage and flavors). There are also brewers embracing the alcohol-free movement, such as Calgary’s Partake Brewing (which is beginning to cross into the US) and Lagunitas and their IPNA, an alcohol-free IPA.

Image: YesMore Content on Unsplash

December 20, 2020by David Klemt David Klemt No Comments

“More help is on the way.” But not for restaurants and bars.

“More help is on the way.” But not for restaurants and bars.

by David Klemt

Speaking about the economic relief package, Senate Majority Leader Mitch McConnell (R-KY) struck what can be generously described as tainted altruism.

“More help is on the way,” said McConnell on the Senate floor on Sunday. He also took the time to attempt to absolve Republican leadership of any blame for the glacier-paced movement forward on relief, laying the fault at Democrats’ feet.

To be blunt, both parties have failed the American people and small businesses in terms of providing federal assistance during the pandemic.

After months of inaction on relief—with the exception of a Congressional vote in September that failed to pass in the Senate—and weeks of discussions and partisan sniping, negotiators finally managed to zero in on a bill with a strong likelihood of becoming law.

Yet sifting through remarks made by some politicians regarding pandemic relief over the course of the past several months, variants of the word “prompt” were bandied about.

If the package passes—which is expected to happen later today—members of Congress and Senate will no doubt perform self-congratulatory victory laps for finally doing their jobs after months of failing to do much of anything in the way of relief. Meanwhile, millions of Americans will continue to face life-altering challenges, reaching out for lifelines that are simply not there.

Included in the package are a number of details identified as “key” to both political parties:

The ability for businesses that had received Paycheck Protection Program loans which had been forgiven to deduct the costs said loans covered on their federal tax returns.
Speaking of the PPP, it will be reopened with over $284 billion intended for small businesses.
$12 billion in available PPP funds for minority-owned and “very small” businesses.
$15 billion made available in PPP funds specifically for independent movie theaters, live music venues, and cultural institutions like museums.
$600 stimulus checks for qualifying adults (and each child in a household) who earned $75,000 or less in 2019. The amount would be reduced for people who earned more. Those who made $99,000 or more last year are not expected to receive a stimulus check.
A $300 boost to unemployment benefits for 11 months, with a possible implementation date of December 27.
Gig and contract workers enrolled in the PUA or PEUC programs can expect the same $300 boost to their benefits for 11 to 13 weeks.
The deadline to spend billions of dollars made available to cities and states via the CARES Act is expected to be extended from the end of this year to be an entire year.
$25 billion in emergency assistance for renters.
A moratorium on evictions expected to be extended through the end of January.

What’s not in the package expected to be rushed through Congress? Hundreds of billions of dollars in state and local aid Democrats wanted, liability shields for corporations Republicans wanted, the $120 billion RESTAURANTS Act, or the $240 billion Restaurant and Foodservice Industry Recovery Fund.

Despite McConnell’s declaration that federal assistance is on the way, the economic relief plan leaves an industry that employs millions of American workers and contributes hundreds of billions of dollars to the nation’s GDP (four percent before the pandemic) to fend for itself.

Guy Fieri, in all seriousness, has done more for more unemployed restaurant workers than the government, raising more than $21 million in relief funds in under two months.

The hospitality jobs lost due to Covid-19 aren’t expected to return. With more than 110,000 restaurants closed—and counting—the economic impact will be felt nationwide and, in all probability, have global ramifications.

The PPP turned out to be an absolute farce: billions of dollars went to businesses that are anything but small by definition. There’s little reason to believe the process will improve much (if at all) this time around.

And while restaurants and bars have been crucial to nurturing community, connections and culture since inception, they’re clearly not considered culturally relevant institutions by politicians.

With Congress facing an uphill battle in terms of drafting the language for the relief bill and then voting on it, expecting our elected officials to propose, negotiate, draft and vote on a bill for the hospitality industry seems foolish. That means the earliest the industry can expect help—which seems exceedingly unlikely to ever materialize—is in late February of 2021.

Apparently restaurants, bars, and the foodservice professionals they employ aren’t key to politicians on any side of the aisle. Well, not until they need venues to host their campaign fundraisers, that is.

Image: Andrew Seaman on Unsplash