Resources

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!

Do your customers remember you? It’s up to you to remind them you exist and to keep them coming back. Here’s what you need to know.

Customer loyalty should no longer be the focal point for your business. Instead, you’ll want to promote your latest offers. These days, people aren’t going to restaurants for a surprise; they’re deciding what they want to eat and then choosing a place that has it. And there’s no shortage of competition.

According to François Pageau, restaurant management lecturer and researcher at the Institut de tourisme et d'hôtellerie du Québec (ITHQ), the key factors are localization, marketing, merchandising, the launch campaign and, above all, food and service quality, layout, decor, and ambience.

Offer a memorable experience

You might serve the best food in the area, but that’s not the only thing that will make your restaurant popular. It’s important to consider other aspects of your restaurant and create a harmonious customer experience. Your restaurant’s physical features are crucial, as they reflect both the credibility and functionality of your space.

In an age when we’re constantly bombarded with all kinds of images, your restaurant’s appearance matters more than ever. A unique visual identity is key to your success. Decor not only adds personality to your restaurant, but it forms a crucial part of the dining experience. Think of it as your way of introducing yourself to customers.

Restaurant operators need to ensure the ambience they create is in line with what customers want. This becomes an effective strategy for attracting customers, and can help you segment the market and determine the right atmosphere for your restaurant. And a unique experience is what will keep customers coming back.

Engage with customers

Customers love talking about the restaurants they’ve tried, whether on review sites such as Google and Tripadvisor, or when talking to friends and family. Don’t dismiss what people are saying about you. Showcase it! Using social media to communicate and interact with your customers will pay off. Your restaurant’s online presence has a significant impact on reservations and sales. It’s a virtuous cycle.

As prices continue to rise, restaurants have no choice but to adapt. For many, attracting customers in times of inflation and economic crisis is a major challenge. Offering deals can be a great solution. QUASEP will guide you in putting together the best proposal for your customers... and for you!

How can you draw customers with your prices without eating into profits? That’s the burning question for today’s economic climate. Options vary based on the type of business and its clientele, but for restaurants, the important thing is to be creative.

Major fast-food chains are often the innovators for this sector. Take a close look at their menus, and you’ll notice they’ve been evolving in recent months. Without cutting into profits, chains are selling more snack-type products, while promoting smaller portions on billboards and online.

Not-so-special specials

More and more, we’re seeing multi-buy promotions, which take away the notion of price per product. Businesses need to create an offer that fits their customers’ purchasing power. Of course, this power has been reduced by overall price hikes, but customers are still looking to spend on things they want—things you can provide.

Panicking and offering ridiculous deals to attract customers at the expense of profits is not the solution. In more economically prosperous times, this may have been an option, but not anymore. In other words, two-for-one deals or double-digit discounts do nothing more than delay already-dwindling profits. Instead, find long-term solutions that keep up with ever-changing demand.

The art of creating offers without losing profit

The first step is to analyze your menu. Where do you make the most profit? Promote your best-selling items. Thinking this way will help you maintain your margins without significantly reducing your profitability.

Menu prices need to be carefully selected. Simply looking at material costs is not enough. Based on your target market, you’ll need to strike the perfect balance between what customers are willing to spend, and the margins you need to stay profitable. Create the right dish for the right price.

Knowing how to act based on the strengths and weaknesses of your business is a daily challenge. Poor-selling menu items can be a major contributor to food waste, and therefore reduce profits. A strong menu leaves no room for unpopular dishes. It can also help streamline your staff’s work, minimize labour requirements or even reduce the time and resources needed to train new employees.

Uber Eats has released its fifth annual Uber Eats Cravings Report, featuring the top delivery trends for 2023. What were this year’s most popular items? Which ones are on their way out? QUASEP will break it down.

In 2023, people aren’t settling for simple fast food. From coast to coast, the most popular delivery dishes include a wide range of cuisines, with American, Japanese, Indian, Chinese and Italian at the top of the list.

Canada’s big cities also tend to eat more nutritionally balanced dishes. Uber Eats users in Montreal, Ottawa, Kingston, Toronto and Vancouver were the most likely to go for lower-calorie options. Even when grabbing a quick bite or skipping out on cooking, city dwellers are clearly committed to healthy eating.

In the US, as people head back to the office after the pandemic, many customers are asking for no onions to keep their breath fresh. Rosé wine is also on the decline, with users opting instead for light reds and whites, even during the summer months.

More than just restaurants

While many customers are ordering from a wide range of restaurants, more and more are using Uber Eats to shop from grocery or convenience stores. The platform isn’t just for hot, ready-to-eat meals—it also delivers everyday household items. In the US, the most popular items in this category were toilet paper, emergency contraceptive pills and COVID-19 tests.

Delivery trends are also showing a shift away from conventional mealtimes. Customers are satisfying their cravings with popular convenience-store snacks such as hot dogs, taquitos, slurpees, chocolate milk, chips, ice cream, popcorn, pepperoni pizza, candy and brownies. In the US, there has been an increase in late-night orders between midnight and 4 a.m., mostly from students. Businesses can take advantage of the trend by offering food 24 hours a day via delivery or vending machines.

Canadians used the platform to stock up on booze, with beer, vodka and whisky at the top of this year’s list, followed by Pinot Grigio and margaritas. In provinces that allow it, selling alcohol via delivery—in addition to serving it to dine-in guests—can be very profitable.

The most popular grocery items ordered through Uber Eats were fruits and vegetables, along with eggs and bottled spring water. Delivery platforms are expanding beyond ready-to-eat meals to include more raw ingredients.

Highlight: Delivery services are not just for restaurants.
 

What’s the optimal kitchen design for your business? What should you focus on and what should you consider before taking action? QUASEP will help you invest in the right places, whether you’re redesigning your kitchen or starting from scratch.

First, you’ll need to choose the right equipment for your restaurant. Gas or electric power? Where will you put the ventilation? What are the dimensions of your future kitchen? These initial decisions are key, as it’s very difficult to make changes down the road, said Guillaume Lussan, Project Department Director at Doyon Després, in an interview.

If you’re buying out an old restaurant, you may not need to design your kitchen from scratch, since you’ll likely be using similar equipment. You’ll probably just need to change certain details, such as the dinnerware, and add a few specialized appliances based on the food you’re selling.

Since the pandemic, more and more farmers are opening their own kitchens to prepare dishes and sauces directly on the farm. Equipment originally designed for industrial use is now being adapted for the commercial sector. This has made it easier, not only for market gardeners but also for restaurants and grocery stores, to process products on site.

Versatility and durability

As prices per square foot continue to rise, it’s a good idea to optimize your space with versatile equipment. Wherever possible, opt for multifunctional appliances to increase your efficiency and keep costs down.

Open kitchens are a popular choice for restaurants that want to showcase their process. In other cases, you’ll find closed kitchens, tucked away from the dining area. A growing trend is the dessert refrigerator, where you can entice customers by displaying your products.

When it comes to equipment, some may be more affordable up front, but it’s important to consider quality. A more expensive item could bring you a return on your investment by helping you save significantly on maintenance.

Ask yourself how long you plan on using it. One year? Three years? Fifteen? Remember that solid used equipment is often more worth it than a brand-new cheap appliance. For instance, a more efficient fryer will cost much more up front, but will save you money by consuming less oil. It’s important to weigh the cost of your investment against the amount you could save in other areas.

If you’re on a limited budget, however, it’s best to spend less on your future kitchen’s design and equipment, focusing instead on construction costs.

Highlight: Start with your initial infrastructure, calculating your costs and expected returns.

In the past, gas stations tended to offer a small selection of snacks. Today, you’ll find a wide range of ready-to-eat meals and food items. As inflation drives some consumers away from restaurants, many are turning to affordable ready-to-eat meals sold at convenience stores. How can you take advantage of these new buying habits while holding on to your existing customers? QUASEP offers several inspiring tips.

Customers may not be eating out as often, but they’re continuing to shop at convenience stores and gas stations despite price increases on drinks and ready-to-eat meals. Why? Because these accessible items require no preparation and no tipping for service.

Consumer habits have also shifted towards eating at all hours of the day, not just traditional mealtimes. This is especially true for students and workers with busy schedules.

There’s a reason a number of supermarket brands have opened express locations specifically for ready-to-eat products. Unlike fast food chains, they offer healthy alternatives for the many customers seeking quick, affordable meals.

Staying adaptable

Restaurants may be struggling to adjust to the new trend, but keep in mind that it’s a real business opportunity. A convenience-store consumer trend report by Technomic found that 54% of people were going to restaurants less often, while only 30% were buying fewer prepared meals.

You can easily appeal to these customers by adding new items such as breakfast foods and snack-sized dishes to your menu. Add a personal touch with seasonal products or flavours from around the world.

Sandwiches will always be a top choice for anyone with a craving. Hot or gourmet sandwiches are another viable option for any time of day.

Why stop at soft drinks? Single-serve alcoholic beverages and smoothies are clearly a popular choice at airports and other businesses. You can even create your own personalized drink to set yourself apart from the competition.

If your business offers other services in addition to prepared food, you may want to come up with promotions that combine the two. This will increase the volume of your food sales.

Highlight: Don’t miss out on the ready-to-eat food market.

Gone are the days of breakfast, lunch and dinner. Consumers these days are all about snacking, or eating five smaller portions a day. How can you take advantage of the new trend? QUASEP tells you everything you need to know.

Cafés and convenience stores are already cashing in, and fast-food chains are following suit. The new format works especially well for busy, on-the-go customers. Snacking is the restaurant version of a snunch—a portion smaller than a traditional meal but more filling than a snack—and is gaining popularity, especially as a late-night option.

There’s a reason a number of fast-food chains have added lighter portions to their menus, which are sold any time of day or night. But serving food 24 hours a day is far from a new concept, and traditional pubs have always done it.

This trend is your chance to fill in those quieter periods from 2 to 5 p.m. Maybe people didn’t have time for lunch, or they just couldn’t wait until the next meal. At any given time of day, there are customers hungry for more than a little snack.

In fact, less than 27% of customers actually eat three meals a day, which means there’s a real business opportunity in dividing the day into five. It’s no coincidence that a number of convenience store chains are now selling pizza, burgers and other indulgent food items.

Endless possibilities

Whether it’s sandwiches, salads, pastries, desserts or traditional dishes, you’ll want to make snacks a part of your strategy. Use this opportunity to sell reduced portions—perhaps a pizza smaller than what you serve for traditional meals. Offering cheaper items such as these will attract customers looking to eat out on a budget.

Try making smaller versions of your most popular menu items. Also, keep in mind that a growing number of customers are turning to vegetarian or vegan options, either for ethical or health reasons. Compostable or reusable plates and cutlery are an easy way to draw in a more environmentally conscious clientele. Adapting to these trends doesn’t require a complete menu overhaul. Simply identify your most popular items and offer smaller versions of them.

Highlight: Snacking is a growing trend and a business opportunity you won’t want to miss.