Page 36 - MENU May June 2017

BACK OF HOUSE
The foodservice landscape is changing too, which will mean more competition for existing operators. Co ee may be the number one beverage ordered at restaurants, but there is a burgeoning market for restaurants that sell bubble tea. Filipino restaurant chain Jollibee made national headlines as they began their expansion into Canada last year. Once adjust- ed for menu in ation, per capita foodservice spending is relatively at. Since the pie is not growing, operators need to market to a more multiculturally diverse consumer in order to remain relevant. Depending on where you are located, it is vital to have menu items that appeal to your local demographics.
IMPACT OF AN AGING POPULATION
It’s a fact. Canada’s population is getting older. In the 1970s, 8% of the population was over the age of 64. Today, that number is 17% and by 2030 it will climb to 23%. Younger genera- tions generally eat out more often than older generations and are more adventurous when it comes to trying new foods. Millennials enjoy speed of service, while Boomers prefer
a full-service setting. One of the biggest challenges for restaurant owners is how to appeal to both types of customers...if at all.
Aging population will also a ect your sta - ing. While youth between the ages of 15 and
SHARE OF CANADA'S POPULATION AGE 65+
25% 20%
20%
15%
5%
PROJECTED POPULATION GROWTH: 2017 TO 2030
AB
BC
mb canada pei
on sk qc nb
nl ns
0% 10% 20%
10%
26%
13%
7%
0
1
971
1971
1989 2007
2025
2043 2061
2061
-%
2016
Source: Statistics Canada
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MAY / JUNE 2017
24 still make up 42% of the foodservice labour force, the total number of Canadians between the ages of 15 and 24 will decline between 2017 and 2026. In recent years, more seniors are looking to work in the restaurant indus- try. While seniors still account for only 2% of foodservice employment, this is up from just 0.5% in 2000.
IMPACT OF SLOWER POPULATION GROWTH
Economic models show population growth was a signi cant factor driving foodservice sales
in Alberta and Saskatchewan between 2006 and 2014. In fact, population growth was a bigger factor than real GDP growth. Ultimate- ly, population growth matters. Yet, Canada’s population has slowed from an average of 2.7% growth during the 1950s to just 1% annual growth today. By 2035, Canada’s population will grow by just 0.7%.
Slower population growth is a barrier to eco- nomic activity. It also leads to labour shortages because there are fewer younger people. By 2035, the foodservice industry will have more than 100,000 un lled positions. And in certain parts of the country, slow population growth will restrain foodservice sales.
THERE ARE
THREE KEY ELEMENTS RESTAURANT OPERATORS NEED
TO WATCH WHEN IT COMES TO CANADA’S POPULATION:
IT’S CHANGING
IT’S AGING
IT’S SLOWING
-10%
-10 -5 0 5 10 15 20 25
Source: Statistics Canada