TORONTO — The Restaurants Canada Show (RC Show) returned to Toronto’s Enercare Centre April 8 to 10 for three days of panel discussions, workshops, competitions and networking opportunities for the foodservice industry. This year’s Level Up theme was aimed at supporting the industry, helping restaurateurs and foodservice operators discover new ways to push the boundaries of what’s possible while embracing innovation.
State of the Foodservice Nation
To open up the show, Chris Elliott, chief economist & vice-president, Research at Restaurants Canada presented his annual State of the Foodservice Nation, which reviewed the latest macroeconomic indicators and analyzed how the evolving economic outlook will impact foodservice sales in 2024. He also discussed what lies ahead for the foodservice industry in 2025 and beyond, and how operators can navigate these uncertain waters.
“In order to understand what’s going on with the restaurant industry and restaurant sales, we have to talk about the economy,” said Elliott to lead off the session. “Because if we see slower economic growth, that’s going to [impact] foodservice sales. The number-1 factor impacting the economy right now is high interest rates. The Bank of Canada is trying to slow down the economy to allow the supply side to catch up. The main factor that’s determining what’s going on with interest rates is inflation. So, as long as inflation remains high, interest rates are going to remain high. But, as we start to see inflation come down, we’ll see the Bank of Canada move to lower interest rates, which is going to lead to stronger economic growth, which will lead to stronger foodservice sales.”
Coming out of the pandemic, Elliott said inflation is hovering around two per cent, “which is really that sweet spot that the Bank of Canada wanted to be in. Typically, they have a range of one to three per cent for inflation.”
But, he continued, in the middle of 2022, inflation jumped to its highest level in more than four decades. “This is growth we’ve never seen before. But, we’ve never re-opened an economy before. We had a lot of supply bottlenecks; we had pent-up consumer demand and all of that led to much higher inflation.”
Since then, inflation has started to come down. “This is the impact of higher interest rates, energy prices started to come down a lot of those supply bottlenecks that we had at the beginning of the re-opening of the economy have faded away.”
Looking forward, Elliott said forecasts show that inflation is steadily going to come down. “For this first quarter of 2023-2024, we’re going to see inflation just below three per cent, so we’re now back into that target range for the Bank of Canada. Eventually, we’ll see inflation come down to about that two-per-cent target by the middle of 2025. It’s all going in the right direction.”
We’ve Done That: Black Entrepreneurship in Food and Hospitality
As part of this year’s show, an exhibit pavilion showcased a collection of 30 Black-led businesses, featuring exhibits ranging from food incubators, to community farming to Jamaican foodstuffs and more.
The RC Show hosted a panel on the first day titled We’ve Done That: Black Entrepreneurship in Food and Hospitality. The panel was moderated by Elle Asiedu, executive director, The Re-Seasoning Coalition and featured a trio of Black female entrepreneurs who discussed how they forged their paths to become successful entrepreneurs.
According to Chanee Dowdie, owner/creative innovator of Honey Soul Food, a black-owned and female-led restaurant located in Mississauga, Ont., “I consider myself a serial entrepreneur.” Dowdie opened her restaurant in 2021 and has seen tremendous growth, even through the pandemic, expanding into a catering business and launching retail products such as an exceptional cornbread that has quickly become a fan favourite as well as other Jamaican menu items. Her company, which has been in existence for three years has “conquered the city,” said Dowdie, pointing to her team of nine people who help her with the catering arm.
For Kenesha Lewis, head taste tester at One More Cocoa Gourmet Chocolates, not only has success been possible, it’s been a heady experience given that her line of gourmet chocolates produced in Whitby, Ont., has become an overnight sensation, fuelled by making it on the list of Oprah’s top favourite products of 2023. “I pitched myself to them and I dreamed and I got it done,” she said. “We were on the list a month before Canadians even knew about it.” Lewis also operates a retail shop where “passion for sweetness meets the rich tapestry of Jamaican flavours.”
Lewis admitted it’s been a challenge to juggle the various nuances of being an entrepreneur. “You have to be stern as owner,” said Lewis. “You can’t always be the gentle parent so I had to learn to be the good guy and the bad guy.” That was a challenge for her, she said, given “in my regular life I gave people a lot of grace.”
Amanda Hamer, chef, caterer and food entrepreneur of Edible Bliss, a catering company specializing in creating the perfect menu for special occasions, agreed with Lewis and said, “I didn’t know I had to be a therapist.”
On the operations side, Hamer said initially she “was terrified to feed people. I was so terrified about people hating my food. As a woman, you want to do it all, and you can’t. You’ve got to let go and let people do it.” Hamer gave up her 9-to-5 job in 2018 to become a full-time entrepreneur and has built a thriving business through many referrals.
When asked what’s been the biggest surprise for the entrepreneurs, Dowdie said it’s realizing just how resilient she really is. “I like to make sure I’m a good business partner that can be relied on. I’m willing to do anything for the dream.”
Never Gonna Give You Up! Canadians Committed to Coffee
On day two of the show, a panel titled Never Gonna Give You Up! Canadians Committed to Coffee explored data and insights, trends and innovations in coffee. Moderated by Robert Carter, president, Coffee Association of Canada (CAC), the panel featured Nick Gibson, CPG SMB client business partner, NielsenIQ; Joel Gregoire, associate director – Food and Drink, Mintel; and Parul Verma, senior brand manager, Keurig, KDP Canada.
First, Carter presented findings from CAC’s proprietary research. The survey, which Carter said goes out twice a year, tracks consumer-purchase behaviours as it relates to coffee and how the industry is performing, highlighting both in-home and out-of-home consumption.
“Coffee in Canada is a strong, resilient industry overall. When we look at the consumption pattern of coffee over the last couple of years, it has continued to increase. There are a number of factors driving that consumption,” said Carter. “Younger consumers (ages 18 to 34) are driving growth in the specialty-coffee segment. Cold coffee has also been a key factor driving the industry. In fact, it’s at the highest level we’ve ever seen through our research. Everything cold is hot, as we say. Hot coffee is still the majority of consumption but we’re seeing good growth coming through these speciality areas.”
Looking ahead, Carter said there’s a lot of excitement in the industry. The growth of coffee categories within the Canadian marketplace is driven largely by younger consumers and innovation, which we’ll continue to see.
Next, Verma talked about climate change and its impact on coffee consumption. “Climate impact is top of mind when Canadians are making a purchasing decision,” said Verma, adding that the health of coffee crops, the livelihood of coffee farmers, sustainability and fair trade are all important criteria when it comes to decision making for coffee in retail or out-of-home settings.
Verma continued, “Keurig is the largest buyer of fair-trade coffee in the world. From that standpoint, we’re really close to some of the pressures facing not only consumers, but also producers.”
To meet the diverse needs of consumers as it relates to packaging, Verma talked about Keurig’s recent multi-year innovation agenda for its single-serve brewing system, including a completely re-imagined coffee system and a portfolio of new products and technologies.
The foundation of Keurig’s future vision is K-Rounds plastic-free pods created from coffee beans that are ground, pressed and wrapped in a proprietary, protective plant-based coating preserving the coffee’s flavour and aroma, eliminating the need for plastic or aluminum. K-Rounds will work in the new Keurig Alta brewer as part of a re-imagined system that allows consumers to make a variety of hot and cold barista-style beverages. Consumers will provide feedback in the ongoing development of the Keurig Alta in various beta testing phases, which began in fall 2024, as well as insights from coffee-brand partners, before making it available for broader sale. Verma said the system is expected to launch in 2025 with full commercialization in 2026.
Then, Gibson highlighted five shifting trends with regard to inflation and consumer-purchasing behaviours.
“Fortunately, inflation is decelerating, but the cumulative impact is still something consumers are facing. Since 2021, consumers are paying at least $16 more. That pressure is on all of us and it’s going to hit all of us in different ways.”
Considering consumer-purchasing strategies as they relate to coffee, Gibson recommends companies lean into promotions without overdoing it and know their consumer.
Presidents & CEOs Re-shaping the Landscape of Food Business
This women presidents and CEOs panel discussed changing customer needs, market shifts and trends and organizational change. Moderated by Kelly Higginson, president and CEO, Restaurants Canada, speakers included Susan Senecal, CEO, A&W Food Services of Canada; Juanita Dickson, president, Gusto 54 Restaurant Group; Rohini Dey, owner/founder, Vermilion and Let’s Talk Womxn; and Chantalle Butler, president, Molson Coors Canada. Together, the panellists shared the secrets of their successes.
“Only 30 per cent of management positions are held by women, plummeting to a mere 11 per cent at the C-suite level,” said Higginson by way of introduction. “While female ownership is gradually increasing, we’re also still lightyears away from parity. This is why panels and discussions like these are so important for us to continue to have.”
To start off, the panellists discussed their individual leadership styles and how it impacts their workplace culture and team.
“My leadership style is heavily rooted in my own personal values. Integrity, accountability, courage, commitment and curiosity are at the root of that. I try to lead with a coaching style,” said Butler. “I want to bring the best out in others and help them reach their potential because that’s how we’ll be successful together. Lastly, diversity, equity and inclusion, which seems like a common statement to make, but it’s not just about checking off the boxes. The true spirit of DE&I is to make sure we’re getting diversity of thought and opinions to gather the best ideas before we make business decisions.”
“It depends on the situation,” said Dey. “There are times when I micro-manage and I’m more autocratic and there are times where I’m totally hands off, trust my team and I’m more delegative. With Let’s Talk Womxn, which comprises 900 female restaurateurs and business owners, I take on more of a visionary and transformational leadership style.”
Next, the panellists discussed their approach to setting strategic goals and creating alignment throughout their organizations.
“Strategies have to live. They can’t just be something that’s in a book or posted on a wall. All of our processes start with a strategy and people’s responsibilities/accountabilities. We organize ourselves specifically for each strategy,” said Senecal. “Our Climate Goals, which were initially developed in the ‘70s, accompany each of our strategies. They’re about certain behaviours we need to improve on if we truly want to achieve our mission and strategy. We meet twice a year and this commitment to Climate Goals is what helps us move forward.”
“The number-1 indicator of success is consistency,” said Butler. “When we set our company strategy, we made sure it’s one that we believe in and aligns with our values. Once we had that set, it’s been consistent. We’ve had a few tweaks and deviations but it’s the consistency in our strategy that’s made it understandable and easy to communicate all the way through the organization.”
Then, the panellists reflected on the biggest risk they took in their careers.
“I was nervous when Frederic Landtmeters, who I’m succeeding in this role, told me I should put my hand up to be the Chair of The Beer Store,” said Butler. “I’m the first female Chair of The Beer Store and moving into that role was nerve-wracking. I had been on the board for a couple of years prior, so I knew there was some pretty influential people around the table. It’s an interesting dynamic, which may have been why I was nervous, but the biggest reflection for me was making sure I understand my fiduciary duties as Chair of The Beer Store and the decisions I make and the way I lead is in the best interest of the organization as a whole and separating from my fiduciary duties at Molson Coors.”
The panel wrapped up with the key themes or changes that’ll happen within the speakers’ organizations or the industry in general. Key topics included innovation, experiential dining, premiumization and more.
Sharing Perspectives and Pushing Progress with DE&I
Moderated by Amrita Bhalla, managing director, A.B Consulting, this panel uncovered strategies to help businesses foster diversity, ensure equity and prioritize inclusivity. Speakers included Ren Navarro, owner/operator, B Diversity Group; Julie Cafley, executive director, Catalyst; and A.J. Stewart, Operations manager – Supplier Diversity, CGLCC (Canada’s 2SLGBTQI+ Chamber of Commerce).
To kick off the discussion, Stewart said, “[DE&I] has to start from the top. If you don’t have representative leadership within your organization, then you’re going to be less likely to diversify your customer base, your supply chain and your workforce. It’s really about walking the walk and talking the talk. You can’t just do one or the other. Having a dynamic, strategic plan around DE&I is critical and sustainable for business.”
“The most important thing is to not leave it to good intentions,” said Cafley. “This needs to be central to strategy. The example I like to use is, if a business wants to increase sales, you don’t have a ‘celebrate sales’ day. As important as it is to have Black History Month or International Women’s Day, what’s more important is what businesses are doing every single day to embed these practices in their way of existing. If it’s central to strategy that means there’s a plan, metrics, resources, et cetera. For so long, organizations have said they want diverse leadership and they have good intentions but that’s enough in this day and age.”
Then, Navarro initiated a conversation about the importance of mentorship. “It’s important to talk to someone who’s made it and makes up 75 per cent of the C-suite. What did they look for? What did they do? How easy was it for them and how hard is it for you? If we don’t acknowledge barriers, we’ll continue to ask about how we get under-represented people into leadership. Although you can’t fix all the issues at once, talk to the people you want to see in those offices.”
Cafley said Catalyst has done research in this particular area. “People have been proven, consciously or unconsciously, to mentor people that look like them. Sponsorship is like mentorship in action, and we’ve found that men, for example, are more likely to sponsor men. We’re biased even in our mentorship and sponsorship practices so we must look more constructively at who we’re mentoring to expand that network to make a positive difference.”
From a 2SLGBTQI+ perspective, Stewart said, “Within that mentorship framework, you have to be conscious of the power balance between a mentor and a mentee. In talking about men being more likely to sponsor men, let’s put that into perspective with someone from the trans-gender or non-binary community. They have to mentally prepare to be misgendered as they walk into their mentorship session and are forced to deal with compounded trauma. Businesses need to put a lot of time, thought and care when pairing up folks with a mentor to set them up for success.”
Other key topics included addressing disparities in the foodservice industry, creating safer spaces, unpacking unconscious bias and more.
Adding Tech to the Menu: Boosting Revenue without Burdening the Kitchen
In this session, Moneris/UEAT and Libro discussed ways to streamline order management and take advantage of multiple mobile-ordering solutions without adding increased burden to back-of-house staff. Speakers included Serge Poutchigian, senior VP, Restaurant Strategy, Moneris/UEAT, and Lorne Schwartz, president of Libro. Together, they discussed how businesses can use data analytics to help with personalized marketing strategies, identifying trends and exploring how delivery aggregators, ghost kitchens and virtual brands can expand revenue opportunities.
Poutchigian touched on the advantages of kiosks for handling inventory, recording reservations and keeping track of certain ordering channels.
“A restaurant technology framework that can easily plug in and unplug solutions is ideal,” said Poutchigian. “If operators can make their restaurant technology framework scalable and flexible then they’ll be ready for whatever is next,” adding that voice ordering is something to look out for in the future. “How are operators going to handle these orders when it’s no longer a human being interacting with a physical menu?”
Macro Trends for Foodservice 2030
This presentation, delivered by David Henkes, senior principal and head of Strategic Partnerships, Technomic Inc., looked at how the industry will evolve through 2030, assessing key trends such as the changing demographics of Canada, technology, the growing role of sustainability and labour challenges, among others.
“We want to re-set everyone’s expectations in terms of where the industry is headed, what the outlook is and what the industry will look like in 2030,” said Henkes to introduce his presentation.
Henkes highlighted two major axes of competition within the foodservice industry – convenience and experience. “Those are the two guiding lights for operators, suppliers and even distributors,” he said. “That’s what we look at within the context of the industry and how it’s going to grow.”
One of the key trends Henkes discussed was social responsibility/corporate social responsibility. “This idea of social responsibility has been woven into the fabric of foodservice,” he said. “Technomic looks at social responsibility in two ways – care of the people, including employee safety, living wages, insurance, humane working conditions, hunger reduction, and care of the planet, including waste reduction, animal welfare, energy efficiency, recycling, sustainability, et cetera.”
In this area, 50 per cent of Canadian consumers said social responsibility is an important factor in deciding which restaurant they’ll visit, according to Technomic’s research.
“A lot of it comes down to packaging,” said Henkes. “Packaging in many ways has become ground zero for a lot of corporate social responsibility and sustainability initiatives in Canada and throughout the world. Sixty-one per cent of consumers say they want sustainable packaging when they go out to eat and that number will continue to grow over time.”
From a regulatory perspective, Henkes said the challenge for foodservice operators is that it can become difficult to build long-term national strategies. “How do you build a unified strategy around packaging based on several regulatory issues in certain areas of consumer demand?”
Then, Henkes talked about the effects of changing demographics. “As we’ve come into 2023, Canada just passed the 40 million mark in terms of population, largely because of immigration. There are huge demographic shifts that are happening, one of which is an aging population.”
He said consumers aged 65 and over will account for approximately 22 per cent of the population by 2030. Demand for senior-friendly menu options will increase.
Conversely, Henkes said foodservice frequency peaks between 28 and 33. Fast forward to 2030, the Gen Z cohort will impact food-related experiences as they increasingly value technology, accuracy and speed. “This is a generation that’s much more mobile, willing to order takeout and likely to eat on the go or in their car,” adding that this cohort doesn’t care as much about taste as older consumers.
Henkes wrapped up the presentation with statistics about the surge of immigration. Currently, there are 9.6 million people in Canada that identify as a minority, representing about 27 per cent of the total population. He says immigration is impacting food choices, heat-flavour profiles and consumption habits. Looking ahead, operators and suppliers will have to think strategically about the products they’re selling and how to target these growing populations in Canada.
Beyond the Menu is ESG Integration
Integrating environmental, social and governance principles into your management strategy enhances your brand reputation while assuring stakeholders that you’re balancing risk and opportunity. On day three of the show, a panel moderated by Shane Harker, founder & president, Rethink Resource, dove into practical strategies for implementing day-to-day ESG practices and explored many collaborative opportunities for industry-wide advancements. Panellists included Joe McMahan, VP of Sustainability & Shared Value, Maple Leaf Foods; Victor Plange, head of Marketing, Too Good To Go; and Paul Yang, senior director – Procurement, Sustainability, Tim Hortons.
“Our packaging strategy is actually quite simple,” said Yang, when asked about Tim Hortons’ ESG initiatives. “There’s really just three pieces to it. The first one is we need to reduce the amount of stuff that we consume out there, and that we put out into the world. The second piece of the plan is about innovating. We look at that through design and through materials. And we’re very creative with how we look at material science, how we piece that together, the work that we’re doing, understand manufacturing processes, and technology and equipment, we combine all of those different pieces to drive meaningful innovation at the right price points that we can scale. And then the last part is really about walking the talk. We call it closing the loop. But this piece is really about looking at packaging as a resource, instead of a spec item, and then figuring out how we can drive value for that resource.”
Maple Leaf Foods has also made great strides in reducing its packaging footprint.
“One [example] is our poultry trays in our new facility are now 100-per-cent recyclable, a lot of people don’t realize that,” said McMahan. “We’re partnering with an organization that puts logos on packaging so that you can see it. They’re plastic, they’re no longer foam. And while that might be considered additional plastic waste, 96-per-cent of it is from post-consumer recycled content. So, we’re taking plastic design put into a waste stream and providing it to another purpose.”
A lot of the work the company is doing is on the pieces of its packaging that can’t be recycled, such as the food contact, flexible film that goes on top of the packaging. “We’re working to lighten the amount of plastic that’s required, while ensuring the same properties around strength and preserving the quality of the food,” said McMahan.
Next year’s RC Show will take place from Apr. 7 to 9, 2025.
