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At the end of March, the Government of Canada announced a series of policy changes to the low-wage stream of the Temporary Foreign Worker (TFW) Program. With summer around the corner, how will these adjustments affect the HRI sector? QUASEP takes a look.

As of May 1, Labour Market Impact Assessments (LMIAs) for hiring temporary foreign workers in the accommodation and food services sector are valid for a period of six months, instead of the previous duration of 12 months. Employers can only apply for an LMIA after demonstrating that they have exhausted all other options. They are also no longer permitted to hire up to 30% of their workforce through the TFW Program.

“These changes will leave the sector in a vulnerable position as we enter peak season,” said the Conseil québécois des ressources humaines en tourisme (CQRHT) and the Alliance de l’industrie touristique du Québec, in a joint statement. According to these organizations, the policy changes could exacerbate the already critical labour shortage in the tourism industry.

“The tourism industry is working hard to come up with innovative solutions to support its businesses, for example integrating asylum seekers into the workforce, while the government appears to be working against the needs of the sector,” said Xavier Gret, CEO of the CQRHT.

Limited access to a significant labour force

Tourism operators who hire temporary foreign workers—a significant part of the HRI sector’s labour force—will have to rethink their strategy. “Considering that about 10% of Quebec’s tourism businesses hired a temporary foreign worker last year, the new policy will have repercussions for the tourism industry, one of the most affected by labour shortages,” said Frédéric Dubé, Interim CEO of the Alliance de l’industrie touristique du Québec.

The Association Hôtellerie du Québec (AHQ) shared a similar sentiment, pointing out that 25% of hotel operators consider staff shortages a major obstacle to business growth, with close to 20% reporting fewer employees than in 2019. “Labour shortage is still one of the hotel industry’s top four priorities. We don’t understand why this industry has been excluded from the priority sectors,” said Véronyque Tremblay, president and CEO of the AHQ.

The policy changes “fail to account for the unique realities and challenges” facing the tourism industry, according to the CQRHT and the Alliance de l’industrie touristique du Québec. “The seasonal nature of the industry requires a higher level of flexibility and responsiveness, something these measures do not seem to recognize.” The two organizations have asked the government to reconsider the changes, with specific consideration for the accommodation and food services sector.

Highlight: “The seasonal nature of the industry requires a higher level of flexibility and responsiveness, something these measures do not seem to recognize.”

Restock a lancé récemment l’INDICE Restock, trois taux clés du marché mis à jour chaque semaine. QUASEP vous explique en quoi cet outil peut aider les professionnels à mieux performer.

L’INDICE Restock, lancé en avril dernier par l’entreprise Restock, est un indice composé de trois taux clés pour l’industrie, qui est diffusé chaque semaine sur HRImag.

Cet indice présente les variations de semaine en semaine de trois volets des services alimentaires : les achats, les coûts de nourriture et les ventes. « Il s’agit des trois valeurs autour desquelles un restaurant peut mesurer sa performance », explique Christian Bergeron, directeur de Restock.

Coûts réels versus théoriques

Les moyennes hebdomadaires de l’INDICE Restock sont établies d’après les données compilées par l’entreprise sur son millier de clients, qui représentent un très large éventail d’acteurs de l’industrie de l’hôtellerie, de la restauration et des institutions (HRI).

Restock propose aux professionnels du secteur une plateforme qui permet d’optimiser leurs processus de gestion, avec une approche automatisée. Sa solution de contrôle centralisée sur les variables critiques du monde de la restauration permet de surveiller les coûts de production, les inventaires, les achats et les ventes, tout en ayant un comparatif sur les coûts réels versus théoriques.

« Les données partagées dans l’INDICE Restock sont impossibles à trouver ailleurs, affirme Christian Bergeron. Restock a vraiment une position clé pour y avoir accès ; aucune autre plateforme ne serait en mesure de le faire. »

Une première au Québec

L’INDICE Restock est publié chaque samedi dans l’infolettre de HRImag.com, partenaire de diffusion exclusif, et visible ensuite toute la semaine sur le site HRImag.com.

Véritable « point météo » du marché, cet indice permet à tous les acteurs des HRI de voir comment l’industrie se porte au Québec. Au fil du temps, ces variations permettront également d’avoir une vue globale des tendances dans l’industrie et sur leur évolution.

« C’est une première au Québec d’avoir accès à un outil aussi instantané, indique Robert Dion, fondateur et éditeur de HRImag. Fini de se comparer à des données canadiennes ou américaines : la restauration québécoise a désormais son propre outil ! »

L’INDICE Restock permet aux restaurateurs de pouvoir se comparer au reste du marché pour savoir si leur situation est normale ou s’il y a des corrections à apporter à leur stratégie, publicitaire ou d’achats, par exemple. Christian Bergeron résume : « En donnant des indicateurs pour se mesurer, Il aide les restaurateurs à se mesurer  correctement ».

Exergue : « Véritable “point météo” du marché, cet indice permet à tous les acteurs des HRI de voir comment l’industrie se porte au Québec. »

RESTOCK recently launched RESTOCK INDEX, a collection of three key benchmarks updated weekly. QUASEP explains how professionals can leverage this new tool to improve performance.

Launched in April by the company RESTOCK, INDEX features three key industry benchmarks, published weekly on HRImag.

The index tracks week-to-week fluctuations across three specific food industry metrics: procurement, food costs and sales. “These are three figures against which a restaurant can measure its performance,” said RESTOCK CEO Christian Bergeron.

Actual vs. theoretical cost

RESTOCK INDEX’s weekly averages are based on data the company gathers from roughly 1,000 of its wide-ranging clients from the hotel, restaurant and institutional (HRI) sector.

RESTOCK offers industry professionals a platform to optimize their management processes using an automated approach. Its centralized system measures critical restaurant benchmarks and allows users to track production costs, inventory, purchases and sales, while analyzing actual versus theoretical cost variance.

“The data shared in RESTOCK INDEX cannot be found anywhere else,” said Bergeron. “RESTOCK is truly in a key position to access information that no other platform can.”

A first in Quebec

RESTOCK INDEX is published every Saturday exclusively in the HRImag.com newsletter, and can be accessed for the rest of the week on HRImag.com.

The index serves as a market weather report, providing important updates on Quebec’s HRI industry. Over time, these metrics will paint an overall picture of industry trends and how they evolve.

“This is the first time Quebec has had access to such an instant tool,” said Robert Dion, creator and publisher of HRImag. “No more comparing ourselves to data from the US or the rest of Canada; the Quebec restaurant industry now has its own tool!”

RESTOCK INDEX helps restaurant operators benchmark their performance against the rest of the industry, and find out whether their situation is normal, or whether they need to adjust their strategy, for example with marketing or procurement. Christian Bergeron summed it up by saying, “The tool provides benchmarks to help users determine whether they’re well positioned in the industry.”

Highlight: “The index serves as a market weather report, providing important updates on Quebec’s HRI industry.”

Takeout and delivery skyrocketed during the pandemic, but now, the trend is reversing, with some restaurants rethinking the way they offer these services. Should businesses continue to invest in delivery? QUASEP explains.

The strategy of maximizing kitchen resources emerged during the pandemic, when health restrictions prevented in-person dining and forced more consumers to order takeout. As their kitchens sat idle, many restaurants shifted their focus to delivery. This gave rise to the ghost kitchen concept—restaurants designed to operate without a customer-facing space and to meet high demand through a delivery-only model.

The end of ghost kitchens

Four years later, things seem to have changed, and the virtual restaurant model is struggling to sustain itself. Customers have returned to in-person dining, and a number of major fast-food chains are rethinking their strategy. This year, US chain Wendy’s is reconsidering its plans from 2021 to open 700 delivery-only locations, according to a New York Times article published in April. Have restaurant takeout and delivery reached a plateau?

Consumers may also be moving away from these platforms because of the fees, tips and higher prices overall. Inflation and the current economic climate no doubt play a role in the trend.

Don’t rely solely on delivery

While partnering with delivery apps is far from a miracle solution for restaurants, incorporating these platforms into your business strategy is certainly worth considering. Just remember it comes with a price tag. For the privilege of being listed on these centralized platforms, restaurants can pay up to 30% of an order’s subtotal, in addition to commission fees on orders for pickup.

In return, platforms offer restaurants increased visibility among hungry users. At the same time, these apps collect customer information using marketing techniques that don’t necessarily serve the businesses they feature. Delivery apps are responding to market demand and claiming their piece of the pie…and it’s a sizeable piece.
 

When you own or manage a restaurant, customer satisfaction at the end of the meal should be a top priority. Of course the food is key, but there are ways to enhance the overall experience, and technology can be a great help. QUASEP takes a look at the possibilities. 

Any restaurant operator knows how great it feels to see a customer walk out delighted with the experience. In today’s highly competitive restaurant industry, customer service is more important than ever. Gone are the days when service meant no more than providing a pleasant experience. To be successful, restaurant operators today need to anticipate customer needs and desires. But how far should they go to please customers?

Customer loyalty

A simple satisfaction survey at the end of a meal is no longer enough. Offering rewards to your first-time guests, for example, will make them want to come back. Loyal customers can be given a free product or a discount on the menu. Get creative! Loyalty programs are also a great word-of-mouth marketing strategy.

Building customer loyalty in the restaurant industry is about personalizing not only the experience, but the brand message. Customers are looking for more than products—they want a brand whose message and values align with their own.

Understanding your program members’ preferences will help you optimize your product offering based on customer habits. With the increase in digital transactions, customers are seeking more personalized interactions in their everyday spending. In other words, a personalized experience is becoming a key factor in building loyalty—encouraging customers to come back and spend more at your business.

Recognizing your customers

These days, everyone wants the VIP experience. How can you make customers feel not only welcome, but recognized? Technology can help you collect information about them, so you’ll want to use this tool as efficiently as possible. Customers want to be recognized. Why not indulge them? Show them you know their habits, new menu items they might like, what they don’t like, or what they’re allergic to. Nothing makes customers happier than feeling that you care about them and that they can trust you.

Think of all the interactions you have with your customers. Understanding individual customer behaviours, tastes and preferences will allow you to optimize your menu and promotions. Every touchpoint becomes a personal experience, creating a mutually beneficial relationship. Why not offer each customer a personalized menu?

Spring Trends: Cold Drinks Are In!

With spring finally here, consumers are putting down the hot beverages, opting instead for flavoured water, vitamin water, energy drinks, cold brew coffee and non-alcoholic cocktails. QUASEP takes a look at the trends.

Cold drinks are a great way to drive sales and, from an operational standpoint, are very convenient. Quick to prepare and serve, they’re a major advantage in today’s labour shortage.

Many of these beverages come in cans or ready-to-drink containers, a format in high demand among today’s busy consumers who seek convenient products on the go.

Cold drinks are also a very broad category. Classic soft drinks and traditional orange juice are out, and a whole new range of products has replaced them.

A fast-growing market

The market has shifted its focus to health as consumers become more concerned with healthy eating and reducing sugar intake. 

Most brands are introducing products with little to no carbohydrates, while others boast “natural” ingredients such as echinacea, green tea, ginseng and guarana.

Water in its many forms is also on the rise, with more and more consumers aiming for the two-litre daily intake recommendation. But people want more than plain water, as shown by an increase in vitamin water sales, for example.

Despite these health trends, energy drinks remain at the top of the non-alcoholic beverage category.

Evolving trends

As consumers constantly seek out new products to try, businesses need to be adaptable to change. Pepsi and Coca-Cola are a prime example of major brands in a perpetual race to reinvent themselves.

The abundance of cold drink options gives consumers a convenient shopping experience, but for companies, it can be a challenge to navigate. Trends are often very short-lived, and brands will need to tap in quickly to reap the benefits.

If we look at alcohol, over the last three years, the trend has shifted from hard seltzers—flavoured sparkling water with alcohol—to flavoured, malt-based alcoholic beverages. 

Non-alcoholic cocktails are also popular, especially with younger consumers, who are showing a rising interest in the annual alcohol-free February challenge.

What to watch for

Another trend to look out for? The iced tea market is expected to grow. Tea is the world’s second most widely consumed food-and-beverage product after rice, and its iced version is becoming an increasingly popular choice.

In the meantime, this summer is sure to bring back slushies—a seasonal staple that always keeps people refreshed.

Highlight: Trends are often very short-lived, and brands will need to tap in quickly to reap the benefits.

After an enduring labour shortage accentuated by the pandemic, the restaurant workforce seems to be making a gradual comeback. But how skilled are these workers? QUASEP takes a closer look.

The unemployment rate in Canada has risen, resulting in a higher number of workers on the job market. This is a boon for the restaurant industry, which has struggled with staffing since losing many of its skilled workers during COVID-19.

Old hands are coming back, but the industry is also taking in many new, inexperienced workers—many of whom aren’t up to the same standards, or lack the necessary skills altogether.

During the pandemic, culinary schools were struggling to attract students, and classes were far from full. Many applicants show great interest in the job but lack the necessary training and skills. Their knowledge of the industry is often limited to cooking shows and competitions.

Reality check

These candidates may love to cook at home, but that doesn’t mean they’re ready for the fast-paced environment of a restaurant kitchen, or the rigour that comes with working on a kitchen crew. They’ll need more than culinary or service-related skills—restaurants require discipline, punctuality and much more.

More and more, managers are seeing staff members cancel their shifts at the last minute, miss work for personal reasons, or show up late after staying up all night.

“Today’s chefs are somewhere between the last generation, which valued a culture of violence and authority, and today’s generation, which no longer takes work seriously,” said an anonymous Montreal chef.

Continuing education

But in the wake of a growing labour shortage, can we really turn down these qualified candidates? We really can’t, because at the end of the day, businesses need to keep running. Just remember, whether it’s your front-of-house or back-of-house staff, your workers represent your business, and you need to do everything you can to help them improve.

This might mean focusing on training, setting aside time and money for new team members. Set up an efficient, supervised training process, giving your more senior staff a sense of responsibility and your recruits a support system.

There are a number of resources available, from Restaurants Canada webinars to reports by the Conseil québécois des ressources humaines en tourisme (CQRHT). You’ve got to start learning somewhere, even if it’s in your own restaurant. And we learn by doing!

Highlight: “Many applicants show great interest in the job but lack the necessary training and skills, their knowledge of the industry often limited to cooking shows.”
 

For businesses seeking to promote their brand and attract new customers, the catering trend is an attractive option. It’s important, however, to know the key steps and to formulate a strategy. QUASEP explores the subject.

Offer your product off-site. Catering services are typically brought to different locations each time, for example to a hotel, park, film set or reception hall, or any event space. 

Some companies now offer full catering packages for business meetings, birthday parties or other special events. Is this a good market to tap into? Many restaurant operators are exploring it as a way of diversifying their businesses.

The trend has taken off in the US in recent years. From breakfasts and sandwich boxes to hot bars, some restaurant chains are promoting their on-demand catering services, where customers can order a menu and have it delivered to an event at a specific time.

All types of food businesses have entered the catering market, from fast-food chains to fine-dining restaurants and even large grocery retailers, each one playing to its strengths. Meals from outside the home has become the norm, and consumer needs have to be met. 

Catering requires planning
 
Alongside food delivery, catering is a way of attracting a different type of customer. Why not sell boxed lunches to the start-up around the corner?

The first step is to assess what you can do with the resources you have. Offering too many products without any real guarantee of quality is counterproductive. The important thing is to stand out by being creative and offering an innovative service. Remember you’re not the only option on the market!

Being responsive to customer requests is almost as important as the quality of the product itself. When it comes to variables outside your company’s control, such as last-minute guest additions or schedule changes, being adaptable is crucial.

Whatever type of catering you choose, you’ll need to know your target clientele. Some services allow for more freedom, while others require more organization. Be sure to factor your strengths into your decision!

A restaurant’s earnings don’t depend solely on the number of customers. Smaller spaces may limit seating capacity, but they also limit expenses. When it comes to profitability, what’s the ideal restaurant size? QUASEP explores the question.

The current small-is-beautiful trend applies to restaurants as much as any other industry. We’re seeing a resurgence of cozier layouts, from small sandwich shop–style spaces to izakaya-inspired Asian restaurants. 

A number of chains and family restaurants are also moving towards an express model or opening smaller spaces without table service. Specialty restaurants are also on the rise, including counter-service chains such as Sushi Taxi.

On the high-end side, we’re seeing an emergence of mini-restaurants that offer single prepaid tasting menus to dining areas of around 10 seats. This format offers customers a more intimate experience with the chef and wait staff.

Lower costs

Small-scale restaurant concepts offer a number of benefits, starting with the economic aspect. A smaller space means a lower initial investment, making bank loans more accessible.

It also means less money spent on equipment, furniture and the space itself—rent being the third-highest expense for restaurants. Along with rent come fixed costs such as heating and insurance, which are proportional to the size of the space. For restaurants that are closed multiple days per week, these costs can be a real burden.

From an operational standpoint, smaller restaurants are easier to manage and require fewer staff members—a major advantage given the current labour shortage. 

Simply put, it’s better to have a small restaurant that’s too full than a spacious one with empty seats. Restaurant operators with a strong business model and healthy profits should focus on maintaining their formula instead of feeling the need to expand.

Bigger is sometimes better

Larger spaces do have their advantages. There’s no denying that a higher-capacity restaurant can—and should—be more diversified in its menu and concept, for example with catering services and takeaway meals.

Offering variety is harder for small restaurants, which are better off focusing on a single concept and developing a specialized menu.

Whether your restaurant is small or spacious, you’ll want to be sure you have a solid business plan and sound management practices. Get informed, weigh the pros and cons, and crunch the numbers. Restaurants are about much more than cooking. They demand real business intelligence.

Highlight: Better for your restaurant to be small and full than spacious and empty.
 

For restaurant operators, menu pricing is becoming an increasingly complex task. Food costs are just one of many factors to consider. The QUASEP team has taken a close look at the issue.

Simply doing things as they’ve always been done is no longer an option. Changes in the economy and in consumer behaviour, payment technology and tipping practices are all important factors when it comes to menu pricing.

Food costs are of course the most important variable in the spreadsheet. It may be tempting, but simply multiplying these numbers by three is no longer a solution, as it reveals nothing about the real-world selling price.

Overhead costs

Overheads such as rent and labour often end up at the bottom of the spreadsheet. Although considered fixed, these costs have become more variable in recent years—and will only continue to rise.

In the last two years, some Quebec businesses have seen rents more than double—hardly a negligible increase. When it comes to paying your staff, you’ll need to anticipate regulatory wage increases. Think carefully about how to provide good working conditions, and you should have no problem meeting the requirements.

The costs of delivery and takeout

In a December 2023 Doordash report, 78% of Canadian consumers said they picked up takeout during that year, while 58% said they ordered food delivery. Even when dining at a restaurant, many customers will ask to take leftovers to go.

These new consumer habits generate additional costs that shouldn’t be overlooked. Delivery packaging costs need to be accounted for in one way or another, not to mention the fees that come with using US-based delivery platforms.

Don’t forget tips

Point-of-sale terminals have come a long way, and customers can now make contactless payments with their credit or debit cards. Be sure to account for the associated fees. Tipping systems can also affect profits, along with inherent additional costs such as employee benefits.

The important thing is to keep costs under control and expect the unexpected. Have you put enough thought into your menu prices? 
 

Restaurant chains are expanding internationally, with many entering the Canadian market. As an independent business, what can you do to compete with these powerful global brands? QUASEP offers some insight.

When a small local restaurant closes its doors, a new chain location opens. In Canada, we’re seeing Popeyes, KFC, Johnny Rockets, Jersey Mike’s, Firehouse Subs and Jimmy John’s, to name a few, all operating under parent companies such as Inspire Brands and Foodtastic.

These chains typically enter the Canadian market through Ontario, testing the market in cities such as Toronto before expanding into other provinces. This was the case with Pret A Manger, which partnered with A&W to open its first location in Ontario’s capital this past January.

Food trends are a key factor. Chick-fil-A, the largest fried chicken chain in the U.S., is capitalizing on the recent craze for its star dish, and breakfast chains are booming as the morning daypart continues to rise in popularity.

Vacant spaces

Chains entering the market are taking over vacant spaces left by independent restaurants forced to shutter during the pandemic. From inflation to labour shortages, the industry has seen its share of challenges.

From a financial standpoint, it’s much easier for larger, well-established brands to secure bank loans and open new locations than it is for smaller independent businesses.

Major chains have the added advantage of being backed by large parent companies with proven track records. Restaurant groups provide assistance with hiring, operations management and on-site procedures, giving chains a significant edge over any independent.

Internal competition

By now, independent restaurants are well aware of the threat posed by major chains. To survive, they’ll need to improve their organizational structure and adopt a solution-based approach rather than blame the enemy.

In the meantime, these major restaurants are competing with each other’s concepts, whether fried chicken, iced coffee or burgers, while offering similar meal segments and price points.

A major challenge for international chains entering the Canadian market is to meet customer expectations. It’s not about reproducing a concept that works somewhere else, but adapting it to the existing local landscape.

So, who will come out on top?

Highlight: Chains are taking over vacant spaces left by independent restaurants.

Hotels, restaurants and institutions are seeing a shift in customer preferences, spawning new ideas on how to move the industry forward.

Customer profiling is the watchword for the hotel industry. Profiles are evolving as more and more travellers combine work and leisure, tacking on extra days to their business trips to do some sightseeing. For hotel operators, this means incorporating more practical workspaces into room renovations, or setting up quiet, secluded spaces in common areas.

Save time—and space!

It’s time for restaurants to say goodbye to paper. Simply provide QR codes on the tables, and customers can open the menu on their smartphones. This method has a number of advantages. First, it’s more eco-friendly, and second, it offers a contactless, germ-free option in a post-pandemic world. It’s also faster—a key factor when it comes to hospitality—since 

Wellness is another trend on the rise, with 41% of Quebec customers seeking these services when staying at hotels, and more than a third looking for transportation to local wellness centres, according to a study by Leger for Quebec’s hotel association, AHQ. If setting up a spa area or having a massage therapist in the hotel isn’t an option, consider partnering with a nearby spa and offering packages.customers won’t have to sit and wait for their menus. This will free up time for your staff, making your business more efficient. Be sure to keep a few printed menus on hand for customers who want them or who don’t have a phone.

In 2024, we’re not only saving time, but making better use of space. Patios, which have become standard since the pandemic, should be optimized this year. Add as much seating as possible, and extend your patio season with heaters, retractable roofs and fire pits. Some restaurants are even installing domes or bubbles, offering customers warmth, privacy and a view of the sky. Not only does this add a few weeks to your outdoor dining in the fall, but it provides shelter on rainy summer days.

Local, local, local

More than ever, people are expecting local products from restaurants. Food served in hospitals, schools and retirement homes is no exception. With the help of government programs such as SNAAQ—Quebec’s strategy for purchasing local food—and Ontario’s Local Food Act, institutions are opting for Quebec-sourced products. Despite the enormous volume of meals served daily in these institutions, the sector’s targets for local food continue to rise.

And what’s more local than a vegetable from your own garden? Market gardens are springing up at schools and other institutions, used not only to supply fresh produce but to raise public awareness. These spaces are a great way to teach market gardening and promote healthy eating. In 2024, it’s time to get our hands dirty!