A Roundup of Noteworthy Canadian Foodservice Findings for the Week of May 17, 2021 Global Consumer Behaviors and Menu Trends Are Evolving

Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of May 17, 2021 Global consumer behaviors and menu trends are evolving. Remain on top of global opportunities and threats with Grab global Technomic’s Global Foodservice Navigator. opportunities [email protected] | technomic.com

TIM HORTONS CANADA SAME-STORE SALES Tim Hortons Leans YEAR-OVER-YEAR CHANGE % on Digital Sales in Q1 -3.3%

After a rocky 2020, Restaurant Brands Restaurant Brands International also International, the parent company of owns Burger King and Popeyes, whose Tim Hortons and other top brands, same-store sales were up 0.7% and -10.8% -11.9% released its first quarter results on April 1.5%, respectively. Restaurant Brands -13.7% 30, 2021. Tim Hortons faced a same- International also added 148 net new store sales decline of 3.3% on a year- restaurants across its three brands in over-year basis in Canada. The prior Q1. year, the coffee chain experienced a double-digit, same-store sales decline each quarter. Tim Hortons seems committed to a focus on off-premise sales, with digital -29.9% sales accounting for 31% of its total Canadian sales in the first quarter. Additionally, Tim Hortons saw about Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 two million downloads of its proprietary app in March alone.

Sources: Technomic Ignite company data

Among recent limited-time dessert Original Glazed Doughnut, as well as a offers rolled out by operators, many Strawberry Glazed Original Strawberry have spotlighted strawberry as the Kreme Filled Doughnut with strawberry seasonal star of both reconstructed cream filling. Additionally, Wendy’s classics and new ventures. This makes Canada revamped a former favourite sense given consumers’ inclination with its recently released Strawberry toward fruit-forward desserts, with 54% Frosty, made with a blend of the chain’s of consumers eating fruit as a dessert at Vanilla Frosty and strawberry puree. least once a week. Strawberry itself is a Baskin-Robbins Canada utilized the well-liked choice among consumers, popular fruit flavour to help launch its with 85% finding the fruit appealing. first-ever oat milk dessert—the Non- Some operators are turning to Dairy Strawberry Streusel Frozen strawberry to create a fresh take on Dessert, spotlighting streusel pieces, their familiar classics. Krispy Kreme granola and a strawberry ribbon. Canada recently launched a limited- time Strawberry Glazed Doughnut, featuring a pink strawberry glaze on its

Source: Technomic Ignite menu data Base: 1,000 consumers (top two box = appealing and extremely appealing) Source: Technomic Ignite consumer data featuring the 2020 Canadian Dessert Consumer Trend Report Image Source: Shutterstock

FULL-SERVICE RESTAURANTS OFFERING THE FOLLOWING COVID-19-RELATED ATTRIBUTES Consumers Still (TOP BOX = % STRONGLY AGREE) 28.9% COVID-19 attribute net roll-up Value Safety at FSRs 32.2%

Takes customer safety and 30.3% COVID-19 safety measures continue to On the right, you’ll see the pandemic- sanitation seriously 32.7% remain top of mind for many related guest experience attributes that consumers. Guest perceptions of consumers strongly agree full serves pandemic safety measures grew slightly are implementing right now. Attention from Q3 2020 to Q4 2020, likely given to these attributes will continue to Safe handling of food and 28.1% because consumers are starting to shift as the pandemic further evolves. beverages venture back into dining rooms and 30.2% placing greater importance on safe interactions and food handling at these dining establishments. Full-service Observes safe social distancing 27.8% operators who communicate their safety measures measures clearly and efficiently to 31.9% consumers will come across as more approachable and trusted, which will likely result in more traffic. Staff uses personal protective 29.2% equipment 34.1%

Base: 5,400 recent restaurant guests per period shown Q3 2020 Q4 2020 Source: Technomic Ignite consumer data

3 Chains Rapidly Growing in 2020 UNIT GROWTH IN CHINA China Despite Pandemic

Haidilao For many in the restaurant industry, found time for a respectable 9.7% unit Check out the performance for China’s 2020 was a year of disruption, pivots, growth in 2020, ending the year with top 25 chains along with consumer, 68.3% challenges and survival. Unit growth more than 7,100 locations. menu and industry insights in was not high atop last year’s key Technomic’s new 2021 China Country Haidilao priorities (at least from about March Report. onward). This hot pot chain grew a staggering 68.3% to surpass 1,200 units. That’s a But some operators in China apparently laudable feat for any chain, let alone a Heytea did not get that memo and instead went full serve. all in on expansion. 52.3% Heytea Let’s check out which chains saw massive unit growth in the world’s most- Not just a trendy beverage brand KFC populous market last year. launching ridiculous quantities of LTOs each month, but a growth engine as 9.7% KFC well, Heytea’s 52.3% unit growth took it China’s dominant restaurant player to about 720 shops on the mainland.

Source: Technomic Global Foodservice Navigator Program

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