Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of July 12, 2021 Global consumer behaviours 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 © 2021 Technomic, Inc. IGNITE COMPANY Taco Bell Set to TACO BELL CANADA YEAR-END LOCATION COUNT Expand Across 50 47 Canada 39 Canadian franchisee Redberry footprint by only 6.5% in 2020 on a Restaurants has agreed to acquire 14 year-over-year basis. existing Taco Bell locations in Canada. 31 Redberry Restaurants currently In addition to the active locations, the operates 135 Burger King and Pizza group penned a deal with Taco Bell Hut locations in four different provinces. 24 Canada to develop 50 new shops in the country over the next few years, significantly increasing Taco Bell’s footprint in Canada. Though not nearly as widespread as it is in the United States, Taco Bell Canada has seen steady location growth over the past five years though it slowed its expansion slightly in the past year. After several years of sustained double-digit unit growth, the quick 2016 2017 2018 2019 2020 service Mexican chain increased its Source: Technomic Ignite Company © 2021 Technomic, Inc. 3 IGNITE MENU Operators Embrace the American South Many Canadian operators are turning to Turning to Louisiana, Fatburger Canada the American South for inspiration when recently launched a limited-time Cajun it comes to new and limited-time menu BBQ Burger, featuring its new Cajun items. Although global influences have sauce. Ricky’s All Day Grill also took been growing in popularity for some inspiration from the area with its new time now, perhaps this is an indication Beef Po’Boy. we will start to see even more specific Arby’s Canada also got in on the trend regional influences as consumers with its recently added limited-time continually seek out unique and exciting brisket dishes, including a Brisket flavours. Bacon Flatbread Sandwich and Brisket One such example of this regional Poutine, both featuring beef brisket and influence is the rising popularity of barbecue sauce. Nashville hot chicken. Both Burger King Many of these regional cuisines are Canada and Red Lobster Canada adaptable, allowing operators to serve recently launched limited-time Nashville them up traditionally or put a unique Hot Chicken Sandwiches. Denny’s spin on them for further culinary Canada came out with its own twist on creativity. the regional sandwich with its limited- time Nashville Hot Chicken Melt. Beef brisket sandwich Source: Technomic Ignite Menu Image Source: Shutterstock © 2021 Technomic, Inc. 4 IGNITE CONSUMER % point change What changes do you expect restaurants to make so that from Q1 2021 to you feel safe and comfortable? Q2 2021 All staff wearing gloves -3.9 COVID-19 Safety Single-serve utensils and cups -3.4 Plexiglass barriers -3.2 Signals Change More hand sanitizer dispensers -3.1 Disposable/recyclable, single-use menus -2.9 With more Canadians receiving COVID- consumers looking for safety cues All staff wearing face masks -2.8 19 vaccinations, Technomic Ignite when comparing Q2 2021 to Q1 2021. Restrictions on number of diners -2.7 Consumer brand ratings data shows Expectations for personal protective that diners have increased their overall equipment such as restaurant Fewer self-serve options (e.g., salad bars, coffee stations, etc.) -2.6 restaurant usage in Q2 2021 compared employees wearing gloves, plexiglass to the prior quarter. More than half of barriers between cashiers and Fewer tables/greater distance between diners -2.6 Canadians (51%) now say that they customers, and employees wearing visit or order food from a restaurant Restrictions on usage of self-serve beverage/fountain -2.6 face masks are among some of the once a week or more frequently. most significant changes. Contactless delivery -2.4 In addition to increased weekly As public health guidelines may ease restaurant usage, changes in what for vaccinated people, restaurant Single serve condiments only -2.2 consumers say will make them feel safe operators must continue to find a and comfortable in restaurants signals balance between guests still seeking More prepackaged, grab-and-go options -2.1 Canadians are feeling more these extra precautions to feel safe and comfortable dining out again. Staff visibly cleaning high-touch areas -1.9 those who may have deprioritized these The table to the right shows visible measures. Contactless transactions -1.3 declines in the percentage of Staff to assist with kiosk or tablet ordering -1.2 Base: 5,600 consumers ages 18+ per quarter Staff to help open and close restaurant doors -1.0 Source: Technomic Ignite Consumer © 2021 Technomic, Inc. 5 GLOBAL FOODSERVICE NAVIGATOR Restaurants Aid in the Race to Vaccinate A year and a half into the pandemic and Jakarta and worked to make shots based Mister Donut donated a portion the virus is still leading countries to available to its employees there. of sales from its recent Vaccine Donut impose and extend restrictions in many range to local COVID-19-related In Russia, McDonald’s is rewarding places around the world. research. employees with one-time bonuses of While restaurants have been and between about US$40 and US$60 And in Mexico, Toks—a homegrown continue to be one of the hardest-hit (depending on region) along with four chain celebrating its 50th anniversary in sectors amid lockdowns, that is not hours of paid leave and other incentives 2021—offered free coffees to stopping operators from making efforts to get vaccinated. vaccinated guests, one of the many to promote vaccinations and help get operators to encourage vaccinations via In the Philippines, multichain operator markets reopened. free food and drinks in recent months. Max’s Group is offering vaccinated Here are a few recent examples of how guests exclusive deals such as free Keep up to date on chain developments restaurant chains are doing their part to dishes, drink upsizes and BOGOs at with Technomic’s quarterly Global battle the ongoing crisis. Max’s Restaurant, Yellow Cab Pizza Operator Briefing, the industry’s most Co., Krispy Kreme, Jamba and other comprehensive digest of global news In Indonesia, homegrown coffee giant brands. spanning corporate, expansion, tech Kopi Kenangan helped fund a new and M&A across 25 countries. Learn centralized vaccination centre in In Thailand, the local division of Japan- more. Source: Technomic Global Foodservice Navigator Program Note: Units based on data from end of 2019 Image Source: Shutterstock © 2021 Technomic, Inc. 6 WANT MORE INSIGHTS? 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