A Roundup of Noteworthy Canadian Foodservice Findings for the Week Of

Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of June 14, 2021 Drive new business growth in the noncommercial channel Understand the unique needs of beyond restaurant segments with Technomic’s Noncommercial Membership.

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Boston Pizza BOSTON PIZZA SAME-STORE SALES YEAR-OVER-YEAR CHANGE % Struggles Amid Dining Restrictions The COVID-19 pandemic is still Despite a rocky 2020, Boston Pizza hampering the restaurant industry’s retained its spot as the lone full-service -15.8% -15.2% recovery across Canada, and Boston chain in the top 10 of Technomic’s 2021 Pizza continues to feel those effects. In Top 200 Canadian Chain Restaurant its first quarter of 2021, Boston Pizza Report. The pizza chain had a net loss reported a total system sales decline of of only one location in 2020, dropping -29.3% 30.3% compared to the same period from 396 to 395 units in Canada. -32.9% last year. Same-store sales were down 29.3% compared to the same period a year prior, and down 40.3% compared to the first quarter of 2019. Decreased foot -50.3% traffic and varying degrees of dining room closures for the prolonged downturn were reasons cited by the Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 company.

Sources: Technomic Ignite Company

It’s no secret that plant-based fare has tofu wrapped in rice and served with been rapidly increasing on menus. This umami sauces. surge could be due to perceived health Pizza operators are also leaning into benefits, with 61% of consumers meat alternative toppings, with Pizza viewing food or beverage labeled as Nova adding plant-based pepperoni “plant-based” to be healthier. Operators made from pea protein to its menu. are taking notice of this, with plant- Pizza Hut Canada joined the trend, based beef showing 59.1% growth year recently teaming up with Beyond Meat over year on menus, making it the to offer Beyond Italian Sausage on its fastest-growing protein. However, pizzas in select markets. operators have also been increasingly exploring new plant-based fare and In addition to plant-based meat presentations beyond the standard replacements, plant-based dairy is also veggie burger. gaining mainstream traction, demonstrated by Panago Pizza’s new One such example is plant-based sushi. Cheezy Bread spotlighting plant-based Earls Kitchen + Bar recently rolled out cheese. its vegan Crispy Tofu Roll, featuring cucumber, mango, avocado and crispy

Source: Technomic Ignite Menu, Q1 2020 to Q1 2021; Vegan sushi roll Technomic 2020 Canadian Healthy Eating Consumer Trend Report Image Source: Shutterstock

© 2021 Technomic, Inc. 4 IGNITE CONSUMER HOW IMPORTANT ARE THE FOLLOWING ATTRIBUTES WHEN SELECTING A FULL-SERVICE RESTAURANT? (% IMPORTANT/VERY IMPORTANT) FSR Diners Continue Quality of food when ordered for takeout Overall takeout capabilities to Prioritize Takeout Quality of takeout packaging 80 % 78 % 78 % A big question on the minds of many when deciding on a full-service 76 % 75 % 75 % centres around the future of off- restaurant for an occasion, we see that premise. This is especially true of full- the number of consumers who prioritize service restaurant operators who takeout continues to grow quarter over pivoted to quickly accommodate quarter. Specifically, the quality of food 69 % consumers’ changing needs and when ordered for takeout, overall expectations for delivery and takeout takeout capabilities and the quality of 66 % over the past 15 months. takeout packaging are significantly 68 % more important to consumers today 63 % As consumers emerge, will off-premise compared to just one year ago. 65 % business resemble what it was pre- pandemic? Will there be a slight easing We suspect that the importance of 59 % 63 % of off-premise occasions, arriving at a these takeout attributes will level off as 56 % 57 % level that is higher than seen before dine-in service returns yet will continue 60 % COVID-19 hit? to remain top of mind for diners moving 57 % forward. 56 % If we look to attributes that are increasingly important to consumers

YE Q4 '19 YE Q1 '20 YE Q2 '20 YE Q3 '20 YE Q4 '20 YE Q1 '21

Base: Varies; Approximately 5,000 respondents ages 18+ per attribute Source: Technomic Ignite Consumer brand ratings data, Q4 2019 to Q1 2021

# OF NEW MENU ITEMS ADDED PER CHAIN DURING 2020 LTO Battle: Asia Edition Asia Average 18.7 Thailand 27.9

South Korea 22.6 Menu development is crucial for chains on the average number of new products Thailand and South Korea come in at to drive traffic and brand excitement in launched by leading chains throughout third and fourth, respectively, both Singapore 11.7 nearly every country globally—and no 2020 based on monthly LTO tracking easily outpacing the regional average. more so than in Asia. among key sets of restaurants. It’s key for operators to understand the Philippines 7.2 LTOs that express emerging trends, To set the baseline, in Asia overall, key importance of product development in- dishes and drinks that showcase chains each rolled out about 18.5 new market as it indicates how competitive seasonal ingredients, and innovative Items during 2020 on average. the local landscape is and how Malaysia 9.4 items that restaurants develop in house important it is to stay on top of emerging Japan, to anyone familiar with the all play into attracting both new and trends. Suppliers can leverage this market, is easily the champ in the Asia Japan 38.8 existing guests. understanding to keep their pipeline LTO battle with nearly double the appropriately filled for the markets they But the quantity of new products can region’s average. operate in. Indonesia 15.1 vary widely by country—even when China comes in second, with chains on looking at the same brand’s menu Technomic tracks LTO activity across the mainland launching about 32 new across different markets. 25 markets globally and publishes data India 6.5 items apiece over the course of the in its annual country reports. Check out who wins the battle for LTO pandemic-stricken year. supremacy in Asia. Findings are based China 32.3

Note: 320 chain menus tracked monthly in Asia across China, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea and Thailand from January 2020 to January 2021 Source: Technomic Global Foodservice Navigator Program

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