November/December 2020

y the pandemic, not all segments
of the industry have been
impacted equally.
QUICK SERVICE
AND FAST CASUAL
“The quick-service and fast-casual
segments fared better through
it all because they could pivot
more easily to a delivery/takeout
model,” says Hopkins. However,
he adds, almost everyone is down
compared to last year and the
speed with which restaurants
were able to shift their operating
One of Burger King’s new designs
features a suspended kitchen and dining
room above the drive-thru lanes
WE’VE NOTICED THAT
CHAIN RESTAURANTS OR WELL-BRANDED
PROFESSIONAL RESTAURANTS HAVE FARED
MUCH BETTER. THE ONES THAT COME
ACROSS AS VERY POLISHED AND
BRANDED…TENDED TO FARE BETTER
BECAUSE THE GENERAL PUBLIC IS VERY
CONCERNED ABOUT HEALTH AND SAFETY
AND THEY ASSOCIATE THAT BRANDED,
PROFESSIONAL FEEL TO A RESTAURANT
[WITH] A MORE-SAFE
ENVIRONMENT
model and share these changes
also impacted performance.
According to Foodservice
Facts 2020, while faring better
than other segments, QSRs saw
declines of 40.6 per cent in April.
And, despite largely being well
positioned to shift to takeout/
delivery, 19 per cent of restaurants
in the segment temporarily shut
down all operations due to either
their business model or location
in a shopping mall.
As noted in a Technomic
Industry Insights report, pizza
chains were among the segment’s
best positioned to adapt to the
COVID-19 landscape, emerging
as the crisis’ “early winners” due
to their well-established offpremise
channels, including both
in-house and third-party delivery.
Reflecting this trend, Pizza Hut
had systemwide sales growth of
18 per cent during the second
quarter of 2020 and a year-todate
increase of 11 per cent.
Other major brands reported
significant sales declines, including
Burger King and Tim Hortons,
which saw Q2 decreases of 25 per
cent and 33 per cent respectively.
Similarly, A&W Food Services of
Canada Inc. reported a 31.6-percent
drop in same-store sales for
Q2. KFC’s Canadian operations
were less impacted, reporting a
four-per-cent decline.
On the other end of the spectrum,
Popeyes Louisiana Kitchen,
which has been growing its presence
in Canada, posted doubledigit
system wide sales growth for
the quarter (24 per cent).
Aside from declining sales, the
factor affecting this segment
the most is the growth of
contactless ordering. According
to Technomic, many Canadian
consumers expect these options
to be offered at fast-food outlets,
with more than 30-per-cent indicating
online ordering via mobile
or computer is an expectation.
“There’s a lot more movement
towards streamlined operations
and [fewer] points of contact,”
says Hopkins. “Prior to COVID-
19, we were starting to see things
like self-serve kiosks [rolling
out at McDonald’s and Burger
King]…And I think we’re going
to see that happen a lot faster.”
Offerings from Liberty Entertainment
Group’s Don Alfonso 1890
As an example, he points to
Box’d by Paramount, which
launched this summer and is
touted as a fully automated
restaurant experience. Toronto’s
Naan & Kabob Group also
launched the Cubby Smart
Kitchen concept in October,
offering five different menus
served through a self-serve
‘Cubby’ (digital locker) system.
And, in recent months,
Burger King and Starbucks both
announced plans to implement
new restaurant designs focused
on convenience and improving
the digital-customer experience
in reaction to changing
customer behaviours.
FULL SERVICE
Generally speaking, FSRs
didn’t fare as well as their QSR
counterparts. According to
Restaurants Canada, the majority
of FSRs temporarily closed
through April following lockdown
because many weren’t well
positioned to shift to takeout/
delivery operations.
According to Statistics Canada,
full-service restaurants saw a
78.1-per-cent year-over-year
decline in sales for the month of
April. During this time, 47 per
cent of restaurants in the segment
were closed for the entire month
and 65 per cent were closed for at
least part of April.
PAULA WILSON [DON ALFONSO]
24 FOODSERVICE AND HOSPITALITY NOVEMBER/DECEMBER 2020 FOODSERVICEANDHOSPITALITY.COM