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Your Perfect Kitchen Partner... It does it all! Combination Processors : cutters and vegetable slicers 23 discs and 3 knives Free demonstration : www.robotcoupeusa.com North American and European economy were rocked by a global recession and people scaled back their restaurant spending. While there has been some recovery in the global economy, he says Canadian consumers remain cautious. TD Economics forecasts disposable-income growth will slow from 3.4 per cent in 2016 to 3.1 per cent in 2017 and three per cent in 2018. In the third quarter of 2016, household debt as a share of disposable income jumped to a record 168 per cent. Canadians will have to bring down that debt, which likely means less spending at restaurants. “[Full service] has just not recovered,” Carter says. “They’re way off the numbers that they saw in customer visits in 2008 and our expectation is that it’s going to be many years before that segment gets close — if it ever reaches those levels — to what it had in 2008.” Foodservice Facts 2017 shows sales growth in the FSR segment forecasted at only 4.1 per cent for 2016/17 — a decrease from last year’s sales growth of six per cent. That means those operating in the premium-causal and fine-dining segment have to find ways to not only attract consumers to their establishments, but to keep them coming back. Steve Pelton, CEO of the Torontobased The Landing Restaurant Group and SVP of Milestones, says offering more than just a high-quality menu is key to keeping people coming back. For his brand, he says, that means using quality, local ingredients, keeping abreast of new food trends and adding unique experiences, such as beer and wine parings. “At The Landing Restaurants, we try to source only local items, those that are fresh, sustainable and seasonal,” Pelton says. “While we certainly can’t pull shrimp from Lake Ontario, we do make sure our shrimp come from sustainable sources. We believe our customer base really appreciates this. There is still growth in the segment — our Landings brand has grown from three restaurants to nine in two years, and our Milestones brand has seen excellent yearover-year growth, with this year better than in the last five.” Andrew Oliver, CEO and president of Oliver & Bonacini Restaurants agrees that while overall growth in the fine-dining segment is down, his restaurants have been doing well, with solid year-over-year growth. He says what consumers want from a finedining experience is just that — an experience. “When people go out, they want to have a good experience, something of value. When it comes to fine dining, the expectation is that people want that ‘wow’ factor. So, whether you’re going to Canoe once a year or once a week, you want to be sure it’s a phenomenal experience,” he explains. “You have to make sure, each time a person comes to your restaurant, that meal is better than the one they had before — because there are 25 other restaurants they may want to try, and you want to make sure they come back to yours.” Steve Salm, president of Toronto-based Chase Hospitality Group, says in his restaurants there is also a decided emphasis on food quality and health. In fact, approximately 25 per cent of all its menu offerings are plant-based, and there’s a strong emphasis on local and sustainable products — something he says customer are demanding. Because experience is such as key component for guests, Salm says his restaurants now offer customized menus or plates. For example, Kasa Moto offers customized sushi platters and The Chase boasts a customized raw-bar platter. Planta can even create a customized menu for birthday parties. Fisher predicts premium-causal and fine-dining establishments will look for new ways to reach customers going into 2018. He sees fine-dining and mid-range fine-dining restaurants eyeing the fast-causal or quickservice marketspace, but with a unique twist. For example, Chase Hospitality Group recently introduced Palm Lane, located in Toronto’s new Yorkville Village. The restaurant focuses on whole-meal salads and grainand legumes-based bowls. The 2,000-sq.-ft. restaurant will seat 65 diners, but will also place an equal emphasis on take-out and catering. Diners will have a chance to select from 80 ingredients to build their own meals, or select featured salads and bowls. MEAL KITS With people’s lifestyles getting increasingly busy, eating out and shopping are becoming something of a luxury. Enter the meal kit. According to The Nielsen Company (US), LLC, meal kits are making inroads with watch the video FOODSERVICEANDHOSPITALITY.COM
THE HOSPITALITY MARKET REPORT THE DIGITAL REVOLUTION Digital technologies are rapidly reshaping the restaurant landscape. According to the Restaurants Canada report, nine per cent of Canadians said they were very interested in using self-service and touch-screen kiosks, 13 per cent were interested and 29 per cent somewhat interested. Electronic-ordering systems at tables are also something Canadians want to use, with 10 per cent being very interested in seeing what it offers, 16 per cent definitely interested and 28 per cent somewhat interested. UberEats, Just Eat and SkipTheDishes are becoming increasingly popular ways for operators to reach customers, while mobileordering apps will become commonplace, according to Carter. “The growth has been dramatic and more players are getting involved in offering what we like to call a digital door,” he adds. Companies such as Starbucks have blazed a trail with its order-and-pay mobile app and Tim Hortons recently followed suit with its new mobile app that is available on iOS and Android. McDonald’s also has an app in the works for Canada and even smaller chains, such as Aroma, are looking at mobile apps and digital technologies for its operations. “If you’re not looking at it, you don’t have a long-term business strategy,” says Creighton. FH PALM LANE in Toronto is capitalizing on the new trend of whole-meal salads time-harried families. While meal-kit sales in the U.S. continue to grow, they are still relatively new for Canadian consumers, but room for growth is tremendous. While only four per cent of Canadian households purchased meal kits in the past 12 months, compared to 25 per cent in the U.S., 80 per cent of those have continued to buy meal kits after trying them. Forty-three per cent said it helped them save time on meal planning; 39 per cent appreciated the time saved on preparation and cooking; 32 per cent liked the convenience of having the kits shipped to them; 31 per cent that it saved them time on grocery shopping if the kits were picked up in a grocery store; and 30 per cent liked the chance to try a new recipe. And while QSR and FSR operators struggled for their share of the dinner check, sales of retail dinner traffic grew by more than 20 per cent in 2016, according to Restaurants Canada’s Foodservice Facts 2017. FOODSERVICEANDHOSPITALITY.COM NOVEMBER 2017 FOODSERVICE AND HOSPITALITY 33
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