May 2020

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TECH TALK Technology is the engine that drives all of the above trends — from the delivery boom to the rise in dealing. But technology also facilitates additional trends, such as touchless payment, which currently accounts for less than two per cent of all transactions. This form of payment is expected to climb as consumers continue to exercise caution around touching surfaces in public places or handling money. Pre-ordering has also risen in popularity, even before the COVID-19 crisis began. In fact, digital orders currently account for six per cent of all restaurant dollars and have been climbing faster than any other segment of the market for about three years. Customer interaction through social media allows restaurants to communicate with their customers, even if they are closed or on reduced service through this crisis. LOCATION, LOCATION, LOCATION According to the NPD Group ReCount census of restaurant locations, there are approximately 65,000 commercial restaurants in Canada. And, while independent restaurant counts peaked in 2008 — followed by declines every year since — chains continue to grow, although the overall number of restaurants is down about 7,000, or just under 10 per cent in about 10 years. Restaurants Canada suggests another 10 per cent closed at the start of this crisis and many more are on the verge of shuttering. Amid these closures, independents have actually grown share of visits in recent years and those remaining open are stronger than ever as consumers gravitate towards the unique and authentic dining experiences offered by independent operators. In fact, a recent study completed in the U.S. by CivicScience indicates consumers are looking for ways to support their local businesses during, and after, this crisis. While this is a difficult time for independent restaurants, those able to survive the hardship should come out stronger on the other side. A NEW OUTLOOK Now, more than ever, restaurateurs need to realize going out to a restaurant is not just about the food. If it were, restaurants wouldn’t be suffering as much as they are right now because we still need to eat. Instead, eating out is about the experience. It’s all about spending time with friends and family, enjoying a night out and soaking in the ambiance. The functional side of eating out — the food — is further down on the list. In fact, a recent study completed by The NPD Group in the EU confirms going to a restaurant is one of the first things that many plan to do as soon as they’re able. SUMMING UP During this crisis, it’s important for operators to focus on their core. Understand your customer, why they visit and how your restaurant is different and unique. Continue to do what you do — only better than ever. But don’t be afraid to try new things to stay relevant and current, as long as they remain aligned with your core offerings. FH Vince Sgabellone is a foodservice industry analyst with The NPD Group. He can be reached at vince. sgabellone@npd.com π SHIPPING SUPPLY SPECIALISTS WE'VE GOT YOUR BAG ORDER BY 6 PM FOR SAME DAY SHIPPING COMPLETE CATALOG 1-800-295-5510 uline.ca 8 FOODSERVICE AND HOSPITALITY MAY <strong>2020</strong> FOODSERVICEANDHOSPITALITY.COM
CRISIS MANAGEMENT PLANS FOR ACTION Crisis management for the hospitality industry BY ALLAN DICK ISTOCK.COM/CA-SSIS Crisis-management planning has been an important responsibility of company management and boards of directors. It’s fair to say that although hospitals have included preparing for pandemics in their crisis-management planning, the same cannot necessarily be said for most businesses in the hospitality industry. Businesses have been scrambling in the face of the current COVID-19 crisis to address its effects with little indication an effective and strategic plan had already been in place. Although only several weeks into closures or significant reductions in offerings, we’ve identified the following areas where hospitality businesses have had to react and need future plans. FOODSERVICEANDHOSPITALITY.COM MAY <strong>2020</strong> FOODSERVICE AND HOSPITALITY 9
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May 2020

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