By Rosanna Caira
As we turn the page on a new month and a new season, it appears the foodservice industry is gearing up to make the most of the last quarter of the year, using it as a time to catch up and/or accelerate growth, diligently trying to make up for what many are calling a flat year.
Though the pandemic may be in the rearview window, its effects linger on. According to Restaurants Canada, in the first half of 2024, there were 549 bankruptcies across Canada, more than all of 2022 or all of 2021. In fact, bankruptcies in the first half of 2024 are up 54 per cent over the first half of 2023. While consumers continue to enjoy going to restaurants, they’ve also become increasingly discerning about the types of restaurants they patronize and the amount of money they’re spending in them.
On the sales side, Restaurants Canada stats also show that once adjusted for menu inflation and population growth, the average Canadian is spending less at restaurants in 2024 compared to 2023.
Interestingly, while QSR has been the darling of the foodservice industry post pandemic, south of the border, even large chains such as McDonald’s are experiencing sales declines. According to a July 29th, 2024 story in Nation’s Restaurant News, consumer pullback has turned McDonald’s sales negative for the first time since COVID, blaming a “pressured consumer environment for the next few quarters.” This marks the first time same-stores sales have declined both domestically and internationally for the behemoth since the pandemic.
Clearly, today’s restaurants find themselves at a crossroads. And, with labour shortages, rising food costs, and changing consumer preferences continuing to have a huge impact, never has the need for innovation been greater. While operators may be hard pressed to juggle a plethora of daily challenges, — with labour shortages being top of mind — they cannot afford to lose sight of the importance of establishing a distinct identity while building and fostering a vibrant community of customers who are passionately committed to their brand.
As operators sprint to the end of the year, and with 2025 on the horizon, it’s more important than ever for operators to differentiate themselves from the competition. Certainly, the growth of technology evidenced by the advent of food-delivery apps and ghost kitchens has created unprecedented competition. And while technology is an essential tool to be used wisely to help streamline efficiencies, successfully growing your business can only be achieved through the trifecta of offering distinctive cuisine, delivering outstanding service and providing a unique dining experience. At the end of the day, success is all about embracing innovation because more than ever, consumers are looking for unique experiences rather than just meals. And given the precarious economic environment that we’re living in, operators can’t lose sight that value for the money spent is hugely important for today’s consumer. It’s time to shed the long-held, pervasive mindset of following the leader and recognize that a “me-too” attitude just doesn’t cut it anymore.
