Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of Oct. 19, 2020 IGNITE COMPANY Nontraditional Off-Premise Formats Gain Traction The ongoing COVID-19 pandemic has delivered from a restaurant by inspired greater curiosity in alternative automated system/robot or a self- foodservice channels. For example, driving car (55%). almost six in 10 (59%) Canadian Modern technologies that assist with consumers have expressed interest in off-premise ordering are also appealing ordering from ghost kitchens. Some of to younger demographics. In fact, the new ghost kitchens in the market almost half (48%) of consumers ages include Joey Restaurants launching two 18-34 report that they would use a in British Columbia and Ontario, and voice-ordering device for takeout or Quiznos recently partnering with Ghost delivery (e.g., Amazon Alexa). And Kitchen Brands to help serve both chains are listening to this consumer delivery and in-store customers. demand. For example, KFC launched a Nontraditional off-premise formats are feature earlier this year that enables especially appealing to younger customers to place orders through consumers ages 18-34. For instance, voice-powered Google Assistant on half (50%) of consumers within this age Android and iPhone devices. bracket state that they would order food

Source: Technomic Ignite company information featuring Restaurants Canada Foodservice Facts 2020 and Preparing food in a ghost kitchen BrandSpark International Image Source: Shutterstock

© 2020 Technomic, Inc. 2 IGNITE MENU Halloween-Themed Items Spook Up Menus With Halloween just around the corner, and/or beverages that are aesthetically chains are launching creative spooky- pleasing put them in a better mood, themed fare and beverages for a especially during the pandemic. limited-time. Beyond Halloween-themed items, other For example, debuted opportunities for chains to make menu five Halloween-themed doughnuts, items more visually interesting include including Wolfie, a glazed doughnut incorporating fantasy elements, such as dipped in chocolate icing and decorated unicorns or aliens, and offering a tie- to look like a werewolf. And, The Alley dye colouring or colour-changing launched its Eyeball Catcher bubble effects. tea, featuring a large eyeball made from flavoured coconut jelly. These visually appealing offerings are resonating with consumers, especially during COVID-19. In fact, over half (58%) of consumers state that food

Krispy Kreme’s Halloween-themed doughnuts Source: Technomic Ignite menu data featuring the July 2020 Canadian Omnibus survey, 1,000 consumers Image Source: Krispy Kreme Facebook

© 2020 Technomic, Inc. 3 IGNITE CONSUMER

TOP BOX RATINGS Boosting Brand (PERCENT OF CONSUMERS WHO STRONGLY AGREE) SUPPORTS LOCAL COMMUNITY ACTIVITIES

Image 67.7 %

A&W 67.5 % As social responsibility becomes community especially resonates with increasingly important to consumers, younger consumers ages 18-34 and brand image has taken on a new can help brands stand out among the St-Hubert 66.0 % importance. Operators are now being competition. forced to evaluate their company’s core Tim Hortons leads in supporting local values and the extent to which they activities and values in part due to its HAS VALUES SIMILAR TO MY OWN communicate and take action based on high brand awareness throughout the these values. It is becoming imperative country and how the chain clearly for operators to speak up because more communicates these programs both Tim Hortons 62.9 % and more consumers are taking notice within and away from restaurants. of operators’ concrete actions to support their values and mission Cora 61.3 % statements.

Participating in top-of-mind social Toujours Mikes 60.4 % responsibility issues helps to reflect brands’ authenticity and thoughtfulness. Showing commitment to the greater

Source: Technomic Ignite consumer brand metrics data, 5,400 Canadian consumers ages 18+ per quarter, Q2 2019-Q2 2020

© 2020 Technomic, Inc. 4 GLOBAL FOODSERVICE NAVIGATOR Home Kitchens Inspire Menu Innovation Since lockdowns hit markets worldwide Sushi Bakes this past winter and spring, chains have Cross a sushi roll with a casserole and been recreating viral foods and this is what you might get. This trend made famous during home quarantines. started in home kitchens and made its Dalgona coffee made the biggest way to countries in parts of Asia and splash (and continues to), but several beyond. It’s been especially popular in other home kitchen-inspired recipes the . Local chainlet Ooma have landed on the menus of restaurant recently added a Ebi & Soft Shell Crab operators. Here’s a small sampling. Tempura Aburi Bake to its menu there. Burnt Cheesecake Tom & Jerry No-Bake Cheesecake Basque cheesecake popped up as a Popularized in Japan in late spring, this food trend a few years ago, but at-home cartoonish dessert has huge visual baking during lockdowns rekindled the appeal for social sharing. It’s not been popularity of this visually interesting observed on many chain menus yet but treat. It continues to make its way onto that might change soon. McDonald’s chain menus. has a recently added a Jerry’s Cheesecake to Halloween variation on its menu in its McCafe menu in Thailand.

Singapore. McDonald’s new Jerry’s Cheesecake in Thailand looks like a wedge of cheese but is made of cheesecake mousse coated in white chocolate Source: Technomic Global Foodservice Navigator Program Image Source: ThaiPR.net

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