A Roundup of Noteworthy Canadian Foodservice Findings for the Week of April 19, 2021 IGNITE COMPANY

Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of April 19, 2021 IGNITE COMPANY

MTY GLOBAL U.S. Chains Buoy YEAR-OVER-YEAR TOTAL SYSTEM SALES Results for MTY Global In line with a tumultuous 2020 across operates 865 U.S. units, but it does not the restaurant industry in Canada, MTY currently have any stores in Canada. Global reported a system sales decline While MTY built itself on Canadian of 24% in Q1 of 2021. The group largely brands, its reliance on U.S. stores has owns mall-based restaurants in increased in recent years. Sales in the Canada, but had its numbers stay afloat -13% U.S. made up 61% of the group’s total thanks to two large U.S. brands, Papa system sales in 2020, an increase from Murphy’s and Cold Stone Creamery. 48% in 2019. -17% MTY acquired Papa Murphy’s in May -19% 2019 and has owned Cold Stone Creamery since 2016. -24% Though it was Papa Murphy’s nearly 1,300 U.S. locations that bolstered the group’s sales, the take-and-bake pizza brand does have 13 locations across Q2 2020 Q3 2020 Q4 2020 Q1 2021 Canada. Cold Stone Creamery

Sources: Technomic Ignite Company news and MTY Global Investor Relations

Among recent limited-time offers rolled was topped with a nest of Cadbury Mini out throughout Canada, many have Eggs. featured brand names (both food and Krispy Kreme Canada also recently nonfood brands) attached to them. This collaborated with Oreo to release the strategy can help operators drive Oreo Cookie Glazed Doughnut and the purchases, with 54% of consumers who Over-The-Top Oreo Cookie Doughnut, visit fast-food restaurants agreeing that both of which feature an Oreo cookie featuring brand names make them glaze and Oreo cookie pieces. more likely to purchase food or beverages at these locations. Pizza Pizza and Pizza 73 have both taken these branded LTOs a step Both McDonald’s Canada and Tim further by offering limited-time Hortons recently teamed up with merchandise to go along with menu Cadbury to release special limited-time specials. In celebration of UNO’s 50th treats around Easter. McDonald’s anniversary, both pizza chains offered Canada’s Cadbury McFlurry features an UNO Combo, featuring pizzas, Cadbury Creme Egg fondant blended drinks and an exclusive co-branded into soft serve. Tim Hortons released a UNO card deck. Cadbury Mini Eggs Dream Donut that

McDonald’s Canada’s Cadbury Creme Source: Technomic Ignite Menu and Ignite Consumer, including the Technomic 2020 Canadian Future of LSR Egg McFlurry Consumer Trend Report Image Source: McDonald’s Canada website

© 2021 Technomic, Inc. 3 IGNITE CONSUMER PREFERRED WAYS FOR OPERATORS TO HANDLE LIDS Consumers Remain AND STRAWS MOVING FORWARD 49% Remove shared stations where lids and straws are sitting out—instead, 46% Cautious of must ask employees for these items 51% Self-Serve Beverage 27% Operators have had to adjust their self- Offering canned or bottled beverages Offer limited-touch dispensers where serve beverage offerings over the past can provide variety and highlight safe only one straw or lid is dispensed at a 23% year due to safety and sanitation alternatives. Additionally, emphasizing time concerns. Currently, consumers prefer cleanliness procedures around 29% Overall that employees control lid and straw beverage stations will be critical going distribution as opposed to having them forward to maintain customer trust and 18-34 at a self-serve or shared station. This loyalty. 13% 35+ reflects how many consumers are Continue to offer shared stations willing to sacrifice convenience for where lids and straws are sitting out, 17% safety as vaccines continue to rollout. but make sure these items are individually packaged Consumers don’t feel comfortable with 11% lids and straws sitting out as other customers could accidentally touch them while grabbing their own lid or straw. High-touch areas will likely 11% remain a concern to consumers as we Continue to offer shared stations emerge from the pandemic. where lids and straws are sitting out 14% but place hand sanitizer nearby 10%

Base: 1,214 consumers who have purchased a beverage from foodservice in the past month Source: Technomic Ignite consumer data featuring the Technomic Canadian 2020 Beverage Consumer Trend Report

Pizza is popular—now, in the pandemic Leaders include well-known brands era, perhaps more so than ever. It’s such as Pizza Hut (LSR in some convenient, adaptable to myriad markets, FSR in others and both in flavours and toppings, can be premium many), Domino’s and Papa John’s. or budget, healthy or comforting and, Ranked No. 6 among global pizza importantly, highly suitable for delivery. chains by unit count, South Africa- Among Technomic’s Global 150 based Debonairs Pizza is the top brand ranking of the largest global restaurant not based out of America. The South chains by unit count, 11% are pizza or Africa-based chain is followed by Italian/pizza. That’s a huge chunk Canada’s Pizza Pizza and the U.K.’s relative to other major categories, on PizzaExpress (AKA PizzaMarzano in par with burger (10.5%) and besting many parts of the world). chicken (9.3%) and sandwich (3.3%). Learn much more about the global Not surprisingly, the vast majority (76%) pizza landscape from a post-pandemic of the top pizza chains are limited perspective with Technomic’s new 2021 service, with four full serves on the list Global Pizza Category Report. (all from Europe and North America). Image Source: Shutterstock

Note: Global rankings by unit count; Chains based in the United States must operate in two or more international markets and have a meaningful location footprint outside of the U.S. to be eligible for inclusion Source: Technomic Global Foodservice Navigator Program

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