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Restaurant Comings & Goings

Some permanent structural changes have been accelerated significantly here that were already underway slowly and it will be interesting to see the fallout.

My assumptions are:
  • There will be a permanent shift to more online meal ordering with delivery from a much wider variety and style of restaurants because of large numbers of people signing up for this service now and becoming accustomed to it. Fewer restaurants in general will exist post-crisis because of this.
  • The temporary allowance for wine and beer delivery for restaurants will become permanent, albeit with a full permit regimen in place.
  • More "ghost restaurants" will pop up, possibly allowing for a quick and inexpensive way for some people to re-enter the industry; in the UK they have converted shipping containers into industrial kitchens that do nothing but fulfill online orders. These can be packed up and moved anywhere as needed.
  • Conversely, the food truck fad is permanently dead.
  • There was a push back against the percentage cut or fees billed by third-party delivery services, but that will go away because the delivery industry now has the upper had, unless a new entrant comes and starts a "fee war" when the crisis is over.
  • More 24-hour delivery options because of more dispersed working hours; people working in the office "as needed" instead of "during office hours;" and many more people regularly working from home. Why not start work at 8:00 p.m. instead of 8:00 a.m. if there's no time sensitive jobs to be done? So there will be much more demand for meals at 1:00 a.m. than today.

Solid analysis. I would argue that the food truck phenomenon was already starting to dwindle pre-Covid.

I also suspect restaurant groups will consolidate a larger share of the industry even faster than before. It will be boom times for efficient, factory-style kitchens, likely replacing smaller mom and pop operations. I think we're very close to seeing the likes of Milestones, Jack Astors and Cactus Club setting up shop on strips like The Danforth, Roncesvalles and Bloor West Village, effectively creating a restaurant landscape as diverse as that of a Milton Smart Centre.
 
I never understood the food truck craze either. It's just crazy expensive ‘gourmet’ food served on a paper plate. No thanks.
 
To play the devil's advocate, what about the idea that people want "experiences" ? Was there not a trend developing that younger generations wanted to get out, be with others and enjoy a meal, or cocktails together and be part of an experience?
Sounds like a very sad Birthday celebration sitting at home ordering UberEats food along with the couple of bottles of wine that we will be able to be ordered with it, under new AGCO liquor service permits.
 
I never understood the food truck craze either. It's just crazy expensive ‘gourmet’ food served on a paper plate. No thanks.

Someone a few years ago coined the term "premium medicore" for things like this.

I assume that's a riff off the airline industry and their "premium economy" class where you pay $30 more for an extra one inch of leg room and a complimentary cup of light beer.
 
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Moving beyond the standard restaurant or culinary setting, but I could see other entertainment venues like board game cafes (Eg: Snakes and Lattes franchise) and arcade bars (Tilt, Dundas Video, Nightowl, etc) taking a massive hit after reopening. The concept of shared games and devices will remain uncertain to a large number of patrons for a while.
 
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More than 300,000 jobs lost in Ontario foodservice in the last month

DH Toronto Staff | Apr 2 2020, 10:18 am

Nearly 300,000 jobs have been lost in Ontario’s food service industry in the last month, while almost 10% of the country’s restaurants have closed for good.

This is according to Restaurants Canada, an organization that represents the nation’s food service industry.

Restaurants Canada estimates that 800,000 food service jobs have been lost across the country due to the pandemic, with more than 300,000 of those in Ontario alone.

If current conditions continue, those employment opportunities might not return.

Restaurants are struggling to pay rent and other bills due in April, and in response, the organization conducted a survey to learn how those working in the industry are faring.

Responses revealed that nearly 10% of the country’s restaurants have already closed permanently, and an additional 18% could close by the end of this month if the current condition continues.

Further, 80% of restaurants in the Canada have laid off employees since March 1, and 70% of food service operators will further cut back on staff hours, or increase layoffs if, again, conditions don’t improve.

 
Let's face it, even with the federal measures to avoid layoffs, a lot of these places will never come back.
 
Campaign launched to assist restaurants struggling amid COVID-19 pandemic

Phil Tsekouras Multi-Platform Writer, CTV News Toronto
Published Saturday, April 4, 2020 4:39PM EDT

TORONTO -- A well-known beer maker is hoping to help restaurants that are struggling as a result of the restrictions put in place to curb the spread of COVID-19.

Stella Artois has launched the Rally for Restaurants gift card program, a campaign it says will provide local establishments with immediate financial relief.

It works like this: Restaurants, pubs and bars across Canada can register online to be part of the program. From there, customers can buy a gift card to use at participating eateries for take-out, or whenever the establishment fully re-opens, and Stella Artois will add an additional $10 to the value of the card.

The global initiative, which is rolling out in 10 different countries, includes over 200 restaurants and bars that have signed up across Canada.

In Toronto, popular spots like Antler Kitchen and Bar and Piano Piano are taking part, as well as a number of restaurants operated by celebrity chef Mark McEwan.

According to organizers Labatt Breweries of Canada, the program is offered without any stipulations on redemption.

"Many of these establishments have had to close down during the COVID-19 emergency, while others are trying to get by on take-out,” Todd Allen, VP of Marketing at Labatt Breweries of Canada said in a news release. “It's an extremely challenging period and we want to offer as much support as possible."

 
I agree with the earlier comment that people go to restaurants for social experiences ... we're social people by far and large ... not sure I really buy that there will be a massive move to online meal ordering ... I can see people turning too that vs grocery shopping, and of course it'll happen in general, but I still think people want and value that in-person experience ... too add to that, many want a unique experience, not the likes of the typical chains
 
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American perspective on the restaurant situation, which is similar to what's happening here:


Ming Tsai: 50% of mom-and-pop restaurants cannot get through this

Heidi Chung
Yahoo Finance April 6, 2020

The COVID-19 outbreak threatens the future of countless businesses across the world, but among the hardest hit is the restaurant industry.

Big and small restaurant companies are both facing challenges, but famed American restaurateur Ming Tsai warned that small restaurants might not be able to emerge after the outbreak subsides.

“I think 50% of mom and pops cannot get through this,” Tsai said Monday in an interview with Yahoo Finance. “Even with the bailout and the SBA loan, assuming you will bring back full staff. You're not going to have a full staff. You're not going to get the full reimbursement.”

Restaurants are notoriously difficult business with tight margins. Tsai argued that mom and pop restaurants cannot afford to stay closed for prolonged periods of time. “Once they're closed, they're closed — 15% of Chinatown restaurants permanently closed, [they are] never coming back.”

Tsai pointed out that the damage caused by COVID-19 will disproportionally impact restaurant workers. “[Restaurant employees] have nowhere to go. They are the ones that are going to suffer the most in which most disasters, the poorest suffer the most. Economically it's so scary.” Tsai said.

Unlike discretionary purchases, food is a necessity, Tsai explained. “I don't need to buy a car today. However, I do need to eat today, as does everyone else,” Tsai said. “Do I pay rent or pay for food? At a certain point it's going to break. That's what we're scared of.”

Tsai is well respected in the restaurant industry and has received critical acclaim for his Boston-area restaurant Blue Dragon. He’s also authored five cookbooks and won an Emmy award for his work hosting a Food Network show.
 
Marché International leaving Canada, closing Toronto eateries

DH Toronto Staff | Apr 6 2020, 1:22 pm

Marché International — which fronts Marché and Mövenpick Café in Toronto — has announced its withdrawal from the Canadian market.

After ten years in the industry, the gastronomy company says it’s leaving the country is for economic reasons.

The company is expected to close its Toronto restaurants — located at Brookfield Place Street and Concourse Level — at the end of May.

Employees have received notice of the closure and termination of their employment, the company said, in compliance with its legal obligations.

In the future, the company will focus on its airport and leisure hospitality business in Europe.

 
Marché International leaving Canada, closing Toronto eateries

DH Toronto Staff | Apr 6 2020, 1:22 pm

Marché International — which fronts Marché and Mövenpick Café in Toronto — has announced its withdrawal from the Canadian market.

After ten years in the industry, the gastronomy company says it’s leaving the country is for economic reasons.

The company is expected to close its Toronto restaurants — located at Brookfield Place Street and Concourse Level — at the end of May.

Employees have received notice of the closure and termination of their employment, the company said, in compliance with its legal obligations.

In the future, the company will focus on its airport and leisure hospitality business in Europe.


Well that return was short-lived.

Funny, I think as a mid-range offer, they had something for this market. But always felt they were best suited at the version they did w/Loblaws before.

Where they ran their meals-ready-to-go program at a few stores, and it was a step up from the typical offering.

I felt like a focus there, and maybe in serving busy GO Stns or even select TTC Stns if room permitted would have been more down their alley.

But I'm surprised they couldn't get Brookfield place to work for them again.

Mind you, I haven't eaten there since they came back.

I just found them a bit too middle-range to be my type of sit-down place; while not really being on my to-go radar.
 

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