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A Roundup of Noteworthy Canadian Foodservice Findings for the Week of March 8, 2021 IGNITE COMPANY

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A Roundup of Noteworthy Canadian Foodservice Findings for the Week of March 8, 2021 IGNITE COMPANY Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of March 8, 2021 IGNITE COMPANY Pizza Pizza Sees QUARTERLY SAME-STORE SALES YEAR-OVER-YEAR CHANGE % Mixed Quarterly Pizza Pizza Pizza 73 Results Pizza Pizza and Pizza 73, brands The COVID-19 pandemic limited owned by Pizza Pizza Royalty Corp., customer foot traffic in stores, resulting -2.4% -3.4% both continued to see declining in a sharp decline in walk-in sales. This, numbers in 2020. Pizza Pizza accounts combined with a significant decrease in -6.3% for 85% of the group’s locations in nontraditional sales (stores located in Canada. sports and entertainment venues), were -8.3% the primary drivers for the decrease in The two saw a combined 12.5% -10.6% same-store sales. decrease in annualized same-store sales after 0.5% growth the year prior. Pizza Pizza and Pizza 73 experienced identical 17.6% same-store sales -17.6% -17.6% decreases in Q4 of 2020. Pizza Pizza -19.1% had a 13.4% annualized comparable sales decline in 2020, while Pizza 73 saw an 8.1% decrease over the year. Q1 2020 Q2 2020 Q3 2020 Q4 2020 Source: Technomic Ignite company news © 2021 Technomic, Inc. 2 IGNITE MENU Canadian-Raised Chicken Callouts Chicken remains a staple on menus, breaded and seasoned chicken patty with 83.2% of operators menuing it, and made with chicken raised on Canadian restaurants are increasingly turning to farms. In another example, KFC local Canadian farms for sourcing. Canada’s Original Recipe Box includes Local sourcing can be a draw for two pieces of Canadian farm-raised, consumers, with 41% agreeing that hand-breaded, bone-in chicken. Pizza food or beverage described as local is Pizza also called out Canadian tastier. This is helping drive purchase sourcing in its Popcorn Chicken, which decisions, with a further 68% of is made with Canadian farm-raised consumers reporting that they would be chicken. more likely to purchase foods described as local. Mainstream restaurants have been calling out the use of Canadian-raised chicken, with McDonald’s Canada recently releasing a limited-time Chicken McMuffin, which features a Source: Technomic Ignite menu data and Technomic 2020 Canadian Healthy Eating Consumer Trend Report Image Source: Shutterstock © 2021 Technomic, Inc. 3 IGNITE CONSUMER “I PREFER MY PIZZA CRUST TO BE…” Thin Crust Cravings 6—Thin 5 4 3 2 1—Thick 13% 35%, up from 23%, down 20% 31% in 2018 from 30% in 2018 Pizza has been a staple during the These options tend to be thinner overall pandemic in part because of its and can be positioned as a lighter craveability and portability. These choice. 10% options continue to proliferate at While thin-crust pizzas continue to gain restaurants, and many brands are using widespread appeal, it will be new ingredients and dough increasingly important for operators and preparations to differentiate. retailers to consider crust innovation, 15% Demand for thick-crust pizzas has such as veggie-forward and specialty- diminished compared to 2018, with only diet crusts. Pizza Pizza just released its 23% of consumers saying they prefer a Superfood pizza crust, made with thicker crust. Thin crust is the most purple cauliflower, purple sweet 22% preferred crust type overall, with 47% of potatoes and butternut squash. consumers saying they would consider Extending offerings beyond keto- ordering pizza with a thin crust. Keto- friendly crusts to similar lifestyle-diet friendly and gluten-free pizza options options, such as paleo and Whole 30 21% have also expanded over the last few pizzas, can help target current years to meet various dietary needs. definitions of health. Base: 590 consumers ages 18+ Source: Technomic Ignite consumer data featuring the Technomic 2020 Canadian Pizza Consumer Trend Report Image Source: Shutterstock © 2021 Technomic, Inc. 4 GLOBAL FOODSERVICE NAVIGATOR Operators Serve Up Fresh Batch of IPOs Last October, we identified a number of Ediya Coffee | South Korea operators looking to go public across The homegrown coffee cafe chain is the world—particularly across the Asia once again mulling an IPO, having Pacific region, from Kyochon and Paik’s previously shelved plans in 2018. With Coffee in South Norea to Nayuki and more than 3,000 locations, Ediya is Heyteq in China to Guzman y Gomez in twice the size of its closest coffee Australia. competitor. Additional chains have since started Sapphire Foods | India readying IPO plans. Here’s a recap of recent developments. Set to launch an offering as early as this year, this KFC, Pizza Hut and Taco Dodo Brands | Russia Bell franchisee oversees a portfolio of The Dodo Pizza parent reportedly more than 400 units of the Yum Brands expects to launch an IPO by 2024. In chains in India, Sri Lanka and the addition to operating Russia’s largest Maldives. pizza chain, Dodo Brands recently Pizza Hut | Australia introduced both a coffee concept and a doner brand. Local owner Allegro Funds is reportedly mulling an IPO for the market’s No. 2 pizza chain in the near future. Source: Technomic Global Foodservice Navigator Program Image Source: Shutterstock © 2021 Technomic, Inc. 5 WANT MORE INSIGHTS? Since 1966, we have You can get this Ignite Company Ignite Menu See where restaurant chains Pinpoint the latest menu trends produced in-depth report delivered to are, how many units they have and see what’s on the horizon. research focused on the you every week! and how well they’re doing. Explore>> Explore>> foodservice industry. Sign up here>> We provide insights into consumer, industry and menu trends in the U.S., Canada and 23 countries around the world. Our team of experts helps leaders Ignite Consumer Global Foodservice in the industry make complex Get to know your customers’ Navigator business decisions, set strategy customers through 60+ attributes Understand the global industry, and stay ahead of the curve. and visit occasion metrics. from menu trends to consumers, Explore>> in 25 countries. Explore>> Have questions about this report? Reach out to us today. 312-876-0004 [email protected] technomic.com © 2021 Technomic, Inc. .
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