Download
ontario s restaurant industry n.
Skip this Video
Loading SlideShow in 5 Seconds..
Ontario’s Restaurant Industry PowerPoint Presentation
Download Presentation
Ontario’s Restaurant Industry

Ontario’s Restaurant Industry

223 Views Download Presentation
Download Presentation

Ontario’s Restaurant Industry

- - - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript

  1. Ontario’s Restaurant Industry Ron Reaman Vice President, Ontario

  2. Canadian Restaurant and Foodservices Association • Founded in 1944, the CRFA is one of the largest business associations in Canada. • The CRFA represents owner/operators of restaurants, bars, cafeterias, social and contract caterers and accommodation, entertainment and institutional foodservice. • Offices in Halifax, Montreal, Toronto, Winnipeg and Vancouver. • Own and operate CRFA Tradeshow and BC Foodservice Expo.

  3. Our Goal Should be Your Goal CRFA Mission “To create an environment to help members in every community to grow and prosper.”

  4. Critical to the Social and Economic Fabric of Canada • Major contributor to the social and economic fabric of most communities, including $277 million annually in charitable contributions • Every dollar spent at a restaurant generates $1.85 of spending in the rest of the economy • Every one million dollars in restaurant sales creates nearly 27 jobs SOURCE: Statistics Canada and CRFA

  5. One of the most trusted industries 1. Medical research2. Restaurant3. Food4. Tourism5. Technology6. Airline7. Banking8. Newspapers9. Radio10. National retail stores11. Drug and pharmaceutical12. Hydroelectric13. Consumer household product14. Liquor15. Magazines • 16. Television17. Insurance brokerage18. Financial planning19. Insurance 20. Automobile21. Consumer gas22. Cable television 23. Long-distance telephone24. Cosmetic25. Chemical26. Advertising27. Oil28. Cellular phone29. Tobacco Source: Reader’s Digest 2010 Annual Poll

  6. About Ontario’s Restaurant Industry CRFA’s Restaurant Outlook Survey • $24 billion in sales • 7.3 million visits to restaurants every day • 30,200 commercial establishments SOURCE: Statistics Canada, NPD Group and CRFA

  7. One of the country’s largest employers • 404,000 jobs • 6.0% of Ontario’s workforce SOURCE: Labour Force Survey, Statistics Canada

  8. A major source of jobs for young people • 181,000 jobs < 25 • 45% of employment in foodservice • 20% of Ontario’s youth employment SOURCE: Labour Force Survey, Statistics Canada

  9. Where Canadians Find Their First Jobs Restaurant/foodservice 22% Retail 16% Manufacturing 11% Delivering newspapers 8% Agriculture 6% Q:  What was the very first industry that you were employed in? Base:  1,028 respondents. SOURCE: Ipsos and CRFA

  10. Most Canadians would prefer to go out to a restaurant when going out with family/friends. Q:  The following is a list of different activities that you could do when going out with family and friends.  Please rank these in order of how much you prefer to participate in each. Note: the results are based on the share of respondents that assigned a rank of ‘one’ to the above activities. Base:  1,028 respondents. Source: Ipsos poll, August 2010

  11. Where are we today?

  12. Economic Indicators - Ontario Year-over-Year Change SOURCE: TD Economics

  13. Restaurant Sales by Segment - Ontario Year-over-Year Change SOURCE: CRFA and Statistics Canada

  14. Restaurant Sales by Province Canada: 3.9% YTD sales as of Nov. 2011 /YTD 2010 BC -0.2% Sask. 5.1% Man. 5.6% Alberta 7.6% Quebec 3.2% Ontario 4.7% Atlantic 3.0% SOURCE: Statistics Canada

  15. Number of Locations - Ontario SOURCE: Statistics Canada

  16. Top 50 Foodservice Companies SOURCE: Foodservice and Hospitality Magazine, Statistics Canada and CRFA

  17. Competition from Grocery Stores

  18. Restaurant Industry Share of the Total Food Dollar Note: Total food dollar includes spending by consumers, tourists, businesses, institutions and government at foodservice operations, grocery and convenience stores. SOURCE: CRFA and National Restaurant Association

  19. Foodservice Profits

  20. Issue: Labour –Minimum Wages in Ontario • 43% over between 2004 and 2010. • Labour accounts for at least a third of sales. • Due to CRFA’s lobbying efforts, Ontario froze the minimum wage in 2011 - saving the industry $266 million. Source: HRSDC and Statistics Canada

  21. Rising food and labour costs remain the biggest issues having a negative impact on the restaurant industry. Q: What factors, if any, are currently having a negative impact on your business? Base: 333 respondents representing 7,769 units. SOURCE: CRFA’s Restaurant Outlook Survey

  22. Operating Expense Ratios – Ontario (as a share of revenue) SOURCE: Statistics Canada

  23. Pre-tax Profit Margins – Ontario (as a share of revenue) SOURCE: Statistics Canada

  24. Consumer Trends

  25. Most Canadians would prefer to go out to a restaurant when going out with family/friends. Q:  The following is a list of different activities that you could do when going out with family and friends.  Please rank these in order of how much you prefer to participate in each. Note: the results are based on the share of respondents that assigned a rank of ‘one’ to the above activities. Base:  1,028 respondents. Source: Ipsos poll, August 2010

  26. Why Canadians Eat Out Q:  What are your top three reasons for visiting a restaurant? Note:  data are based on share of overall responses. Base:  1,011  (data include only the respondents who purchased and consumed meals at restaurants). Source: Ipsos poll, August 2010

  27. What Lies Ahead?

  28. State of Canada’s Restaurant Industry

  29. A greater share of respondents expect their same-store sales will grow at a lesser rate over the next six months. Q: Over the next six months, do you expect your total sales volume (on a same-store basis) will grow at a greater, lesser, or about the same rate as the previous six months? Base: 333 respondents representing 7,769 units.   SOURCE: CRFA’s Restaurant Outlook Survey

  30. A majority of operators (53%) plan to keep menu prices about the same over the next six months. Q: Over the next six months, do you expect your menu prices to be higher, lower, or the same as the previous six months? Base: 333 respondents representing 7,769 units. SOURCE: CRFA’s Restaurant Outlook Survey

  31. Three-quarters of operators plan to keep their employment level about the same or higher over the next six months. Q: Over the next six months, is your company's level of employment expected to be higher, lower, or about the same as the previous six months? Base: 333 respondents representing 7,769 units. SOURCE: CRFA’s Restaurant Outlook Survey

  32. Restaurant sales are forecast to moderate in 2012 before picking up momentum in 2013. Year-over-Year Change in Restaurant Industry Sales in Ontario SOURCE: CRFA’s Restaurant Industry Forecast: 2012-2016

  33. Labour Shortages

  34. Labour Shortage in Foodservice: Ontario Number of Jobs SOURCE: Canadian Tourism Human Resource Council

  35. What do Consumers Want?

  36. Health

  37. The Importance of Health Health is going to be more important in menu design than it has been in the past Completely Agree (wt=5) Somewhat Agree (wt=4) Neutral (wt=3) Somewhat Disagree (wt=2) Completely Disagree (wt=1) Source: 2010 BrandSpark International Canadian Shopper Study

  38. CRFA’s Health Living Strategy Foodservice Industry Vision for Healthy Living The foodservice industry supports healthy living and offers Canadians choices that reflect their individual commitment to healthy living as relates to balancing nutrition intake with activity.

  39. CRFA’s Health Living Strategy • Only 1 in 10 meals is eaten in a restaurant but we still have an important role to play • Calories in = calories out • CRFA will educate and lead our industry as to what foodservice can do to improve the health of Canadians • CRFA and the industry have been an innovator and leader for a number of years. • Foodservice industry is a major sponsor of physical activity and health programs at all levels.

  40. CRFA’s Health Living Strategy • Trans Fats • Worked with Health Canada and other stakeholders to develop a strategy whereby trans fats were virtually eliminated from foodservice

  41. CRFA’s Health Living Strategy • Sodium Reduction Strategy • Working with Health Canada and other stakeholders for over 2 years to develop a strategy to reduce sodium levels. • In July, the Sodium Working Group tabled a strategy and framework to reduce daily intake of sodium from 3400mg to 2300mg

  42. CRFA’s Health Living Strategy • Menu Labeling • Introduced Nutritional Information Program 5 years ago, 31 chains now participate • Menu board legislation proposed in a several jurisdictions – Not as simple as it seems. • CRFA working on a national framework to give customers the ability to make nutritional choices prior to purchase.

  43. Legislative Issues – CRFA Working for You • Labour Shortage • Minimum Wage • Employment Standards • Taxes • Beverage Alcohol • Environment • Healthy Living • Workers Compensation • EI • Food Safety

  44. Canadian Restaurant and Foodservices Association Thank You Ron Reaman Vice–President, Ontario rreaman@crfa.ca www.crfa.ca