A Roundup of Noteworthy Canadian Foodservice Findings for the Week of Sept

Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of Sept. 14, 2020 IGNITE COMPANY

LEADING LSR PIZZA CHAINS LSR Pizza: A Slice 2019 CANADIAN SALES ($M) AND GROWTH %

Domino's $564.4 7.2%

Above the Rest 0.8% Pizza Pizza $462.2

Pizza Hut $367.9 7.2% Pizza chains were one of the early continues, other types of foodservice winners at the onset of the COVID-19 concepts are moving in on pizza chains’ Little Caesars $235.4 4.1% pandemic, as consumers turned to early successes by adapting to off- takeout and delivery to fill their premise services. For example, Panago Pizza $167.7 2.1% foodservice needs. Limited-service delivery-friendly chicken concepts are pizza chains were especially well poised to grow in the new foodservice equipped to pivot to off-premise, since landscape as consumers increasingly Pizza Nova $154.7 3.7% many already offered both in-house and reach for craveable comfort fare. third-party delivery. Papa John's $122.8 6.5% Leading pizza chains also benefitted from strong year-over-year growth Pizza 73 $91.2 4.2% leading into 2020. Up-and-coming Top 200 chain Blaze Pizza had just over Gino's Pizza $42.6 -4.3% 55% annual sales growth in 2019 and almost 36% unit growth. Pizzaville $39.2 3.4% As disruption from the pandemic

Source: Technomic Ignite company data

Every year, it seems as if pumpkin These moves are a result of chains foods and beverages launch sooner attempting to appeal to consumers and sooner. And this year, it’s no looking for predictable comfort fare different. Several chains got a head during these uncertain times. start on their rollouts, including Consumers are responding, with four in Starbucks’ pumpkin fare and drinks on 10 (40%) reporting that they are buying Aug. 25, followed by Tim Hortons’ more comfort foods from restaurants pumpkin-inspired baked goods on now compared to before the pandemic. Aug. 26.

Starbucks’ Pumpkin Spice Latte and Pumpkin Cream Cold Brew Source: Technomic Canadian May 2020 Omnibus consumer survey data, 1,000 consumers Image Source: Starbucks Canada Facebook page

Growing Demand for SOCIAL RESPONSIBILITY IS IMPORTANT/ VERY IMPORTANT WHEN DECIDING Social Responsibility ON A RESTAURANT

In recent months, civil unrest and Many retail and restaurant operators protests around racial injustice have responded to calls for social justice in 66% 66% occurred across the world, including in different ways, as companies decided Canada. As racial barriers and their place in the evolving conversation 63% 63% inequalities continue to come to light, about race. One way that brands are 65% consumers are increasingly weighing responding is by investing in local how they spend their money based on community organizations and causes. 61% brands’ extent of involvement in While social responsibility and 60% supporting social justice. community engagement are very broad 59% terms, operators will need to consider Younger consumers have consistently specific actions they can take to make placed greater importance on social an impact that also authentically align responsibility in the past year. However, Gen Z/millennial Gen X/boomer/mature with their brand. in the most recent quarter (Q2 2020), we saw a significant increase among Q3 2019 Q4 2019 Q1 2020 Q2 2020 older generations who cite social responsibility as an important decision driver.

Source: Technomic Ignite consumer brand metrics data, 5,400 Canadian consumers ages 18+ per quarter

Payment is Supreme % OF CONSUMERS WHO ANTICIPATE USING CONTACTLESS PAYMENT OPTIONS LONGER THAN SIX MONTHS AFTER in a Contactless RESTAURANTS REOPEN (TOP MARKETS SHOWN) Argentina 52% World South Africa 52% More than half of consumers globally least six months from the resumption of Spain 51% plan to continue using contactless dine-in services is delivery, with 26% of payment services at restaurants for at consumers across the globe expecting Russia 50% least three months after restaurants to continue use. reopen for dine-in service. And 40% of One might expect that with dining those consumers plan to continue use Australia 49% rooms reopening, no-contact pickup, for at least six months or more. curbside handoff and drive-in dining Of all the no-contact services rolled out might come in higher. United Kingtom 49% in response to the crisis—delivery, Looking ahead six months, 24% of takeaway, dine-in, buffet—the ability to consumers plan to still use contactless Chile 46% pay while maintaining personal space takeaway, 23% will use park-and-dine will be used the longest and may be service and 22% will use curbside what consumers are most likely to Malaysia 46% pickup. adopt as a permanent habit. Interestingly, the next most-likely France 45% service that consumers plan to use at

Base: 3,848 consumers across global markets Source: Technomic Global Foodservice Navigator Program

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