October 2022 Digtial Issue

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BUYING LOCAL Chef Ned Bell, author of Lure: Sustainable Seafood Recipes from the West Coast, and partner, general manager and executive chef of Naramata Inn, has been appointed as Buy B.C. Chef Ambassador. First launched in the ’90s, Buy B.C. makes it easy for consumers to identify local ingredients and products by the presence of the Buy B.C. logo. The program was re-established by the provincial government in 2018 and is led by Minister of Agriculture and Food, Lana Popham. As chef ambassador, Bell will work alongside the team to promote the importance of buying local; to support ongoing farmer, producer and chef relations; and to act as a hyperlocal Buy B.C. advocate for all members of the province. “When we buy local ingredients and products, we celebrate nutritious meals grown in our own backyard, and support local farmers and producers, communities and the environment at the same time,” says Bell. “Food grown and raised in B.C. is picked at peak freshness. That means shorter travel time from farms to tables, which in turn creates fresher and tastier food and a reduced carbon footprint, all while maintaining farmland and green space in communities.” SLICE OF INNOVATION Pizza Pizza, in partnership with Captain AI, will soon be the first national QSR to offer customers real-time order tracking via the Pizza Pizza app and website. The new technology includes a management tool for restaurant owners, an AI-powered live dispatch app and a driver app, all of which leverage AI to optimize for efficiency, time and cost. The new order-tracking system is currently being introduced to markets across Canada, with dozens of Pizza Pizza restaurants already live. “We have a long history of leveraging technological innovation to optimize our best-in-class delivery offering. In addition to improving the customer experience, the efficiencies this new system brings will allow us to improve our environmental footprint by reducing paper receipts, reducing food waste and critically, saving fuel usage across thousands of deliveries every year. It’s a true win-win.” BEER ON DEMAND The Beer Store has expanded its partnership with SkipTheDishes to launch on-demand delivery across more than 250 store locations. Through this partnership, customers have access to all pack sizes carried by The Beer Store, including singles, 12s and 24s. “Given the positive feedback from consumers and high demand we experienced during our pilot project, we are excited to be expanding our number of store locations available through SkipTheDishes,” says Ted Moroz, president of The Beer Store. “Our goal is to provide customers access to more than a thousand beer brands and ease of shopping.” “We’re thrilled to launch this partnership with The Beer Store to bring customers products from over 200 brewers around the world through quick and convenient delivery across the province,” says Howard Migdal, COO of SkipTheDishes. “It’s through partnerships like this that SkipTheDishes is able to deliver on-demand convenience to Canadians, saving them time to do more of the things they love.” MAKING MOVES Baskin-Robbins has signed its largest franchise-development agreement in 51 years with McMaster Group Holdings, with plans to open 25 new units in the Vancouver and Calgary markets, led by Adel Ashry. The first Baskin-Robbins location opened last month in Metropolis Metrotown, Burnaby, B.C. and the second opened last week at Guildford Town Centre, Surrey, B.C. These are the first two locations to have a new identity, including a refreshed logo, colours and branding suite that’s being rolled out over the next 18 months. “With a sweet legacy in Canada, Baskin-Robbins remains focused on growth across the country,” says Craig Walker, senior director of International Business, Baskin- Robbins Canada. “We’re delighted to work alongside Adel Ashry of McMaster Group Holdings to bring our full menu of flavours, innovation and treats to new guests in these important markets.” “I’ve been working in the franchise-operating business in the Middle East for the past 23 years and in Canada for the past nine. In that time, I’ve become familiar with the type of brands that will resonate with Canadian consumers,” says Ashry. “I’m excited to join the Baskin-Robbins brand and lead its development in Vancouver and Calgary.” 8 FOODSERVICE AND HOSPITALITY OCTOBER <strong>2022</strong> FOODSERVICEANDHOSPITALITY.COM
FROM THE DESK OF NPD COMING OF AGE Gen Z is the only cohort growing visits in Canadian foodservice BY VINCE SGABELLONE ISTOCK.COM/BLACKANDBRIGHTPH The millennial generation, born between 1981 and 1996, has captured the largest share of marketers’ attention for what seems like, well, a generation. Because it’s the largest cohort in terms of restaurant visits in Canada, this interest should continue in the years to come. Even so, I’m turning the page with this article to provide my first analysis of the next generation, Gen Z. Born between 1997 and 2012, this cohort represents 21 per cent of all visits in Canada, trailing the millennials at 27 per cent, according to The NPD Group’s CREST® foodservice industry database. Gen Z is the only cohort growing visits in Canadian foodservice. Let’s focus on the “front end” of this cohort — young adults aged 18 to 24. Before diving into CREST data, I have a message directed at marketers who have always targeted this age group, regardless of the generation: Statistics Canada reports Gen Zs numbers are shrinking due to a dip in the Canadian aging curve. It’s worth noting this age cohort is smaller in terms of absolute numbers than it was five years ago. CREST reports this cohort’s share of foodservice visits is down by about a half share point since 2018, now just under 11 per cent. Making up for these lost visits is Gen Z consumers’ increased spending per visit at an above-average rate. They are holding steady at 11-per-cent share of foodservice dollars. This growth can be attributed to their increasing use of full-service restaurants (FSRs), which has grown from 16 per cent in 2018 to almost 19 per cent today. Sourced from quick-service restaurants (QSR), these consumers have upscaled their occasions in ways that previous generational cohorts may not have. Amid this segment shifting, the retail-foodservice segment continues to capture an outsized share of their visits, more than with any other cohort. The primary reason for the boost in FSR traffic is a search for places to socialize. NPD’s U.S. foodservice analysts, in their Winning Gen Z report, revealed getting out of the house and socializing are the two biggest reasons this age group dines out. The Canadian data backs that up; CREST reports this cohort is the most likely to dine out with friends. NPD’s Future of Foodservice Canada consumer sentiment study reports this is true especially during afternoon or after-work occasions. And this cohort has travelled the least since the easing of COVID- 19 restrictions. Instead, they are taking part in other social activities, like attending concerts and visiting museums, representing additional opportunities to reach these consumers and encourage incremental social foodservice visits. Finally, the CREST Dining Demands Consumer Segmentation model indicates Gen-Z consumers are more likely than millennials and Gen Xers to dine out for emotionally driven reasons, rather than functional ones. One habit Gen-Z consumers carried over from their youth is snacking. Almost one-quarter of their visits are at the p.m. snacking daypart (afternoon plus evening snack combined), which is four points higher than average. This connects directly back to the heightened share of retailfoodservice occasions, as this operator segment lends itself to these grab-and-go meal occasions. Equally, the morning daypart is underdeveloped among this cohort; these consumers have not yet aged into their workday lifestyles, which are key to driving morning visits in foodservice. And yet, Gen Z is overdeveloped for breakfast sandwiches at non-breakfast dayparts. One Gen-Z trait that likely goes without saying is high engagement with digital platforms. Some of their unique digital behaviours include high usage of text messaging and third-party aggregators (3PAs) to place their digital orders. But they are least likely to use restaurant-branded apps or join loyalty programs. The time is ripe to engage Gen Z diners as they age into a peak restaurant life stage. Providing a space where these increasingly important consumers feel welcomed to engage in the meal occasions they prefer, with a brand that is digitally connected, is an opportunity for restaurateurs to build some incremental brand allegiance and grow a stronger customer base for the future. FH Vince Sgabellone is a foodservice industry analyst with The NPD Group. He can be reached at vince.sgabellone@npd.com FOODSERVICEANDHOSPITALITY.COM OCTOBER <strong>2022</strong> FOODSERVICE AND HOSPITALITY 9
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