Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of April 19, 2021 - Winsight

 
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Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of April 19, 2021 - Winsight
Industry
Insights
A roundup of noteworthy Canadian foodservice
findings for the week of April 19, 2021
Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of April 19, 2021 - Winsight
I G N I TE C O M PAN Y

U.S. Chains Buoy                                                                                                           MTY GLOBAL
                                                                                                                YEAR-OVER-YEAR TOTAL SYSTEM SALES

Results for MTY
Global
In line with a tumultuous 2020 across                      operates 865 U.S. units, but it does not
the restaurant industry in Canada, MTY                     currently have any stores in Canada.
Global reported a system sales decline
                                                           While MTY built itself on Canadian
of 24% in Q1 of 2021. The group largely
                                                           brands, its reliance on U.S. stores has
owns mall-based restaurants in
                                                           increased in recent years. Sales in the
Canada, but had its numbers stay afloat                                                                                             -13%
                                                           U.S. made up 61% of the group’s total
thanks to two large U.S. brands, Papa
                                                           system sales in 2020, an increase from
Murphy’s and Cold Stone Creamery.                                                                                      -17%
                                                           48% in 2019.
MTY acquired Papa Murphy’s in May                                                                      -19%
2019 and has owned Cold Stone
Creamery since 2016.
                                                                                                                                                     -24%
Though it was Papa Murphy’s nearly
1,300 U.S. locations that bolstered the
group’s sales, the take-and-bake pizza
brand does have 13 locations across                                                                   Q2 2020         Q3 2020      Q4 2020          Q1 2021
Canada. Cold Stone Creamery

Sources: Technomic Ignite Company news and MTY Global Investor Relations

© 2021 Technomic, Inc.                                                                                                                                        2
Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of April 19, 2021 - Winsight
I G N I TE M E N U

Brands Help LTOs
Stand Out
Among recent limited-time offers rolled                     was topped with a nest of Cadbury Mini
out throughout Canada, many have                            Eggs.
featured brand names (both food and
                                                            Krispy Kreme Canada also recently
nonfood brands) attached to them. This
                                                            collaborated with Oreo to release the
strategy can help operators drive
                                                            Oreo Cookie Glazed Doughnut and the
purchases, with 54% of consumers who
                                                            Over-The-Top Oreo Cookie Doughnut,
visit fast-food restaurants agreeing that
                                                            both of which feature an Oreo cookie
featuring brand names make them
                                                            glaze and Oreo cookie pieces.
more likely to purchase food or
beverages at these locations.                               Pizza Pizza and Pizza 73 have both
                                                            taken these branded LTOs a step
Both McDonald’s Canada and Tim
                                                            further by offering limited-time
Hortons recently teamed up with
                                                            merchandise to go along with menu
Cadbury to release special limited-time
                                                            specials. In celebration of UNO’s 50th
treats around Easter. McDonald’s
                                                            anniversary, both pizza chains offered
Canada’s Cadbury McFlurry features
                                                            an UNO Combo, featuring pizzas,
Cadbury Creme Egg fondant blended
                                                            drinks and an exclusive co-branded
into soft serve. Tim Hortons released a
                                                            UNO card deck.
Cadbury Mini Eggs Dream Donut that
                                                                                                            McDonald’s Canada’s Cadbury Creme
Source: Technomic Ignite Menu and Ignite Consumer, including the Technomic 2020 Canadian Future of LSR                             Egg McFlurry
Consumer Trend Report                                                                                    Image Source: McDonald’s Canada website

© 2021 Technomic, Inc.                                                                                                                        3
Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of April 19, 2021 - Winsight
I G N I TE C O N S U M E R

Consumers Remain
                                                                                                                   PREFERRED WAYS FOR OPERATORS TO HANDLE LIDS
                                                                                                                           AND STRAWS MOVING FORWARD

Cautious of
                                                                                                                                                                    49%
                                                                                                               Remove shared stations where lids
                                                                                                               and straws are sitting out—instead,                  46%
                                                                                                               must ask employees for these items

Self-Serve Beverage
                                                                                                                                                                     51%

                                                                                                                                                              27%
Operators have had to adjust their self-                   Offering canned or bottled beverages               Offer limited-touch dispensers where
serve beverage offerings over the past                     can provide variety and highlight safe             only one straw or lid is dispensed at a     23%
year due to safety and sanitation                          alternatives. Additionally, emphasizing                             time
concerns. Currently, consumers prefer                      cleanliness procedures around                                                                      29%
that employees control lid and straw                                                                                                                                       Overall
                                                           beverage stations will be critical going
distribution as opposed to having them                     forward to maintain customer trust and                                                                          18-34
at a self-serve or shared station. This                    loyalty.                                                                                                        35+
reflects how many consumers are                                                                                                                         13%
                                                                                                                Continue to offer shared stations
willing to sacrifice convenience for                                                                           where lids and straws are sitting out,
safety as vaccines continue to rollout.                                                                                                                  17%
                                                                                                                 but make sure these items are
Consumers don’t feel comfortable with                                                                                 individually packaged
                                                                                                                                                        11%
lids and straws sitting out as other
customers could accidentally touch
them while grabbing their own lid or
straw. High-touch areas will likely                                                                                                                     11%
remain a concern to consumers as we                                                                             Continue to offer shared stations
emerge from the pandemic.                                                                                      where lids and straws are sitting out    14%
                                                                                                                 but place hand sanitizer nearby
                                                                                                                                                        10%
Base: 1,214 consumers who have purchased a beverage from foodservice in the past month
Source: Technomic Ignite consumer data featuring the Technomic Canadian 2020 Beverage Consumer Trend Report

© 2021 Technomic, Inc.
G L O B AL F O O D S E RV I C E N AV I G ATO R

A Look at the World’s
Largest Pizza Chains
Pizza is popular—now, in the pandemic                          Leaders include well-known brands
era, perhaps more so than ever. It’s                           such as Pizza Hut (LSR in some
convenient, adaptable to myriad                                markets, FSR in others and both in
flavours and toppings, can be premium                          many), Domino’s and Papa John’s.
or budget, healthy or comforting and,
                                                               Ranked No. 6 among global pizza
importantly, highly suitable for delivery.
                                                               chains by unit count, South Africa-
Among Technomic’s Global 150                                   based Debonairs Pizza is the top brand
ranking of the largest global restaurant                       not based out of America. The South
chains by unit count, 11% are pizza or                         Africa-based chain is followed by
Italian/pizza. That’s a huge chunk                             Canada’s Pizza Pizza and the U.K.’s
relative to other major categories, on                         PizzaExpress (AKA PizzaMarzano in
par with burger (10.5%) and besting                            many parts of the world).
chicken (9.3%) and sandwich (3.3%).
                                                               Learn much more about the global
Not surprisingly, the vast majority (76%)                      pizza landscape from a post-pandemic
of the top pizza chains are limited                            perspective with Technomic’s new 2021
service, with four full serves on the list                     Global Pizza Category Report.
(all from Europe and North America).                                                                                 Image Source: Shutterstock

Note: Global rankings by unit count;
Chains based in the United States must operate in two or more international markets and have a meaningful location
footprint outside of the U.S. to be eligible for inclusion
Source: Technomic Global Foodservice Navigator Program

© 2021 Technomic, Inc.                                                                                                                       5
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