Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of March 1, 2021 - Winsight
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Industry Insights A roundup of noteworthy Canadian foodservice findings for the week of March 1, 2021
I G N I TE C O M PAN Y
A&W Challenged by
A&W CANADA SAME-STORE SALES
YEAR-OVER-YEAR CHANGE (%)
Location Closures Q1 2019
Q2 2019
10.0%
10.3%
After posting strong sales growth in While dine-in restrictions were eased Q3 2019 1.2%
2019, the momentum of A&W in over the course of the year, A&W still
Canada was challenged throughout has around 30 restaurants in Canada
2020 by ongoing dine-in restrictions and that have yet to reopen as of February Q4 2019 -1.9%
temporary location closures. 2021.
Annual same-store sales for one of
Q1 2020 -4.0%
Canada’s largest burger chains
declined by 14.3% in 2020, finishing
with a 9.3% decrease during the fourth
Q2 2020 -31.6%
quarter ending Dec. 31, 2020.
Nearly 24% of A&W’s Canada locations
closed temporarily in the second Q3 2020 -12.7%
quarter. Restaurants that remained in
operation were restricted to drive-thru,
limited takeout, delivery and mobile Q4 2020 -9.3%
ordering.
Source: Technomic Ignite company news
© 2021 Technomic, Inc. 2I G N I TE M E N U
Sweet Mashups Offer
Double Indulgence
Operators are increasingly offering Mini Dessert Doughnuts, which featured
indulgent dessert mashups, giving doughnuts mashed up with flavours of
consumers the best of both worlds. This birthday cake, chocolate chip cookie
makes sense given that 40% of dough and strawberry cheesecake.
consumers at least somewhat agree McDonald’s Canada also introduced a
they eat indulgent desserts more often cookie and doughnut mashup with its
now than two years ago. Cinnamon and Cream Li’l Donuts,
which feature cinnamon cookie crunch.
The ongoing pandemic has consumers
Both operators took doughnuts to the
prioritizing their cravings, and
next level by adding an extra dessert
combining two desserts in one allows
component (or the flavour of an
for multiple cravings to be met at once.
additional dessert), making for an even
Also, as a bonus for operators, if both
more indulgent treat.
dessert products or flavourings are
already in kitchens, the mashup allows In another example, this month Dairy
for new product innovation without the Queen Canada began offering a
purchase of new SKUs. limited-time Red Velvet Cake Blizzard,
which features vanilla soft serve
Recently, Krispy Kreme Canada
blended with red velvet cake pieces.
launched a limited-time collection of
Dairy Queen Canada’s Red Velvet Cake Blizzard
Source: Technomic Ignite menu data and Technomic 2020 Canadian Dessert Consumer Trend Report Image Source: Dairy Queen Canada website
© 2021 Technomic, Inc. 3I G N I TE C O N S U M E R
TOP LSRS THAT…
LSRs Drive Menu …OFFER UNIQUE ITEMS I CAN ONLY GET THERE
Arby's 54%
Excitement Dairy Queen
Booster Juice 49%
51%
A&W 44%
Menu streamlining has been a priority The LSRs that rated highest for
for many operators as brands continue uniqueness and the ability to introduce Starbucks 44%
to optimize menu mixes and focus on new and exciting products are known to
off-premise offerings. Consumers are prioritize and highlight new LTOs
still looking for new and craveable regularly. A&W Canada and Dairy
options from foodservice though and Queen Canada are top brands across …INTRODUCE NEW AND EXCITING PRODUCTS
offering updated menu items can help both metrics because they continually
to drive traffic. roll out new items with craveable
flavours. For instance, A&W Canada Tim Hortons 30%
According to Technomic’s 2020
recently rolled out its truffle mozzarella
Canadian Future of LSR Consumer Starbucks 28%
burgers.
Trend Report, 21% of consumers at
fast-food restaurants and 27% of While menu innovation can include new A&W 27%
consumers at fast casuals strongly and unique ingredients, it can also
agree that if a restaurant they typically emphasize small or familiar swaps as a Dairy Queen 27%
don’t visit offers a unique limited-time way to add new items in a more
offer (LTO), they would be likely to visit streamlined manner. Subway 24%
and try it.
Base: Varies by brand
Source: Technomic Ignite consumer data, Q1 2020–Q4 2020 (top box brand)
© 2021 Technomic, Inc. 4G L O B AL F O O D S E RV I C E N AV I G ATO R
Sustainability
Back in Focus
Put on hold for a short while, suppliers Middle East & North Africa
and operators have restarted their
Starbucks rolled out strawless lids
sustainability initiatives in recent
across its system in the region as part
months as the health of the
of its ongoing effort to reduce plastic
environment remains a key long-term
use at its coffee shops.
priority across global markets.
Canada
Here are some recent highlights.
KFC is testing a compostable spork
Australia
made of bamboo, corn and sugarcane
McDonald’s new eco-friendly flagship— that breaks down into biomass and
which marks the brand’s No. 1,000 takes 18 months to decompose.
store in the country—features
As operators return attention to
sustainable cutlery and packaging,
sustainability and eco-friendly
100% renewable energy, recycling for
initiatives, suppliers should promote
used kids meal toys, charging stations
products that help position their clients McDonald’s eco-friendly flagship in Australia
for electric vehicles and carbon-neutral
as industry leaders. Source: McDonald’s press release
delivery service.
Source: Technomic Global Foodservice Navigator Program
© 2021 Technomic, Inc. 5WAN T M O R E I N S I G H T S ?
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