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HOW TO USE MOBILE MARKETING FOR THE RESTAURANT IN 2020 Nearly nine out of 10 (86 per cent) Canadians own a smartphone, according to the Consumer Technology Association. At the same time, 71 per cent of Canadians dine out up to 10 times a month, according to a recent Eagle Eye study, Changing Tastes & Flavours, which surveyed 2,000 Canadian consumers and 200 F&B operators. Most of them (62 per cent) spend up to $30 per visit. 13 per cent of Canadians used their smartphone t...Continue reading

Restaurant owners’ top operational challenges Spending at Canadian restaurants is on the rise. According to Statistics Canada, the average household spent almost $2,600 on food purchased from restaurantsan increase of more than 17% increase over four years. And Restaurants Canada projected full service and quick service restaurants to report nearly $64 billion in sales last year. While this is good news for restaurants, they still face a number of challenges: an increase in ...labour costs, finding and keeping employees, remaining profitable, and complications related to bookkeeping and payroll. One of the largest expenses for any restaurant is labour. Across Canada, minimum wage costs have soared. In Alberta, for example, the adult minimum wage has jumped more than 50% between 2014 and 2019. And in Ontario, minimum wage has jumped almost 37% over the same period of time. The strong economy is making it even more difficult to find workers in certain provinces and even some cities. This year, the country’s unemployment rate dropped to its lowest level in more than four decades. Turnover is also a constant problem for restaurants, especially with a low unemployment rate. While some roles have a low annual turnover rate, it can be as high as 300% for some positions. There are also the hidden costs around finding and replacing employees that must be considered. Our survey of restaurant owners and operators notes that rising wages and high staff turnover were two of their biggest operational concerns. They’re also worried about their payroll and bookkeeping. Payroll can be difficult because of the high turnover rates in the industry. A record of employment must be issued shortly after their departure. And because of the frequency of employees leaving, it can become a hassle. The rules and legislation regarding payroll change frequently, and it can be even more challenging if an operator has restaurants in more than one province since the rules vary in each jurisdiction. Bookkeeping is difficult for owners with a single location because they don’t have a dedicated bookkeeper on staff. Data accuracy is a problem, but another is the timeliness of the data they receive. In a best-case scenario, financial data should be available within a very short timeframe in order for restaurant owners to make informed decisions. As a result of some of these challenges, nearly half of respondents in our survey say they have already outsourced payroll and bookkeeping to a third party

Trends affecting the restaurant industry There are a number of trends affecting the restaurant industry: digital disruption, changing eating habits, and new entrants to the market. Restauranteurs need to be aware of these trends in order to stay ahead of the competition. The rise of food delivery apps has been swift, and many restaurants have begun offering some of their dishes on these apps. It’s a bit of a catch-22 situation for restauranteurs. If they’re not on the app, th...ey lose out on potential new customers. But if restaurants are on the app, they have to pay a commission of anywhere from 10% to 35%. While having someone else take care of delivery means restauranteurs don’t need to hire a driver, they also lose more control of the quality of the food once it leaves the kitchen. A third-party delivery service may not deliver the food quickly enough or some items might go missing, and the restaurant will take the blame. Although apps can bring in additional sales, it’s not yet known if those using the apps are new customers or existing ones. Still, if there are fewer customers coming into a restaurant, it means there aren’t as many opportunities to upsell high-margin items. Eating trends are also changing, thanks in part to Canada’s increasingly diverse population and Millennials. The days of eating a lot of beef and corn are long gone as Canadians are consuming much more poultry and rice than ever before. Many consumers also want plant-based and healthier options, as well as sustainable and locally sourced food. Many large chains have responded by offering meat alternatives made from plants, as well as beef and poultry raised without the use of steroids, hormones, or antibiotics. New chains have also emerged that cater to customers’ changing tastes. Canada is usually the place that American chains go to first when they begin to expand internationally. A number of U.S. franchisors have set up shop here over the past few years, and more are expected to make their way across the border in the near future. Restaurant owners must continue to stay informed about industry trends in order to be more proactive instead of reactive.