Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of Nov. 30, 2020 IGNITE COMPANY A Mixed Bag for Operators Wendy’s recently opened a ghost kitchen in Toronto operated by Reef Kitchens Image Source: Business website The COVID-19 pandemic has created locations in Canada and the U.S., with 400 Canada and U.S. closures opportunity for some chains, while more to follow. announced previously and are others struggle. Let’s review some expected to be in dense metro areas Meanwhile, Wendy’s Canada recently recent examples of both. throughout Canada. In some cases, the opened a ghost kitchen operated by locations will be replaced with smaller- Recent Opportunities: Next-Level Reef Kitchens in Toronto. The ghost format stores. Concepts kitchen will help Wendy’s reach neighbourhoods it previously wasn’t Finally, Paramount Fine Foods said it Tim Hortons installed digital menu able to service via delivery. may be forced to close. The Middle boards that allow guests to order meals, Eastern restaurant chain said it will not earn loyalty rewards and make Recent Struggles: Closures Abound make it more than two months without payments, while also incorporating Canada is closing 100 government assistance because of “predictive selling” technology that locations nationwide. The chain dining restrictions due to the ongoing shows customers promotional offers announced the closures will take place coronavirus pandemic. based on previous orders, time of day over the next year as it continues to and the weather. So far, 800 boards adjust to changing customer habits. have been installed at Tim Hortons These closures are in addition to the

Source: Technomic Ignite company news

© 2020 Technomic, Inc. 2 IGNITE MENU Frozen Drinks Warm Hearts

Throughout the pandemic especially, Cazadores Reposado tequila, consumers have been looking to grapefruit, lime and tropical bitters, all to provide a bite or sip that blended with ice, and they are unable or unwilling to easily Canada brought back frozen hot create at home. Frozen beverages are chocolate, which blends the brand’s no exception, with drinks such as ice- signature vanilla soft serve with cocoa blended coffee, shakes, shaved ice and fudge, topped with whipped topping and other frozen beverages being among chocolate drizzle. the drinks that consumers are most While many menu items have been cut likely to order from foodservice, throughout the pandemic, some frozen according to Technomic’s 2020 drinks are seeing growth. For example, Canadian Beverage Consumer Trend year-over-year mentions of frozen Report. margaritas are up 4.8%, frozen Despite dropping temperatures, bellinis/mimosas grew 40.0%, frozen operators are continuing to roll out mocktails increased 20.0% and frozen adult and nonalcohol beverages. chocolate smoothie mentions are up For example, Cactus Club Cafe recently 25.0%. unveiled a Frozen Paloma, featuring

Cactus Club Cafe’s Frozen Paloma Source: Technomic Ignite menu data Image Source: Cactus Club Cafe website

© 2020 Technomic, Inc. 3 IGNITE CONSUMER “I’M MORE LIKELY TO EAT DESSERTS WHEN I…”

67% …want to treat or reward myself 70% Smiling for Sweets 66% 46% …feel happy 50% 45%

In the midst of the holiday season, engage with a variety of consumers and 41% dessert is top of mind for many. create a positive brand experience. For …have had a bad day 52% Consumers say positive feelings are instance, Baskin-Robbins recently 35% most likely to spur dessert released a DIY Polar Pizza Kit that consumption, suggesting that desserts comes with one prepack of ice cream, a 37% associated with feel-good occasions or cookie base, toppings and packaging. …feel stressed 46% celebrations will be well-received. 33% While holiday celebrations may look different this year, fun holiday callouts, 35% weekend-only promotions and seasonal …feel sad 45% flavour features can all be used to boost 31% positioning around dessert as a reward.

Offering meal kit desserts can also be a 30% fun way for consumers to treat …feel anxious 41% themselves or celebrate with dessert at 26% home. These offerings can help to

Overall 18-34 35+ Base: 1,012 consumers who ever eat dessert Source: Technomic Ignite Consumer featuring Technomic’s 2020 Canadian Dessert Consumer Trend Report

© 2020 Technomic, Inc. 4 GLOBAL FOODSERVICE NAVIGATOR 3 Hacks to Elevate Your Next Meal Kit

Meal kits are a lasting trend amid the simple packaging hack. The boxes pandemic and chains are finding ways feature QR codes that take guests to to differentiate their offerings to stand video demonstrations of how to prepare out amid the glut of choices suddenly in each recipe—an effective touch given the marketplace. Here are three many consumers may not be familiar examples of how operators have added with how to prepare the chain’s a special something to their kits to Vietnamese cuisine. make them memorable. In , venerable quick-service brand In Mexico, casual-dining chain Sonora Mos Burger partnered with established Grill put a couple of twists on the meal kit player Oisix for a novel increasingly ubiquitous burger box with promotion that recast the chain’s its new Sonora Burger Box. It features signature Bolognese sauce not as a four burgers prepared in the style of burger topping as intended, but as a beef Wellington along with truffled fries. pasta sauce. Guests can finish the burgers by It should be noted that each of these injecting them with cheese sauce via an chains rolled out their meal kits well included syringe. after the coronavirus crisis hit their In Australia, fast-casual chain Roll’d country. recently launched meal kits with a Watch a video of Sonora Grill demonstrating how to inject its stunning new meal kit burgers with cheese sauce Image Source: Sonora Grill Mexico Facebook Source: Technomic Global Foodservice Navigator Program

© 2020 Technomic, Inc. 5 WANT MORE INSIGHTS?

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