1. The Maritime Restaurant Industry
Presentation by Garth Whyte
Moncton, NB March 25, 2014

5. Presentation Overview
o State of the Maritime restaurant industry
o State of the economy
o Restaurant sales forecast
o Why join Restaurants Canada?

6. State of the Maritime Restaurant
Industry

7. Overview of the Maritime Restaurant
Industry
• $3.1 billion in sales
• 1.4 million visits to
restaurants every day
• 4,150 commercial
establishments
Full-service
Restaurants
1,650
Quick-
service
restaurants
1,800
Caterers
420
Drinking
Places
280
Number of Commercial Foodservice
Establishments - Maritimes

8. Overview of the Maritime Restaurant
Industry
• 59,800 jobs
• 6.8% of the
Maritime
workforce
Source: Labour Force Survey, Statistics Canada
8,800
10,000
12,800
13,600
23,900
28,300
40,000
44,800
59,800
64,300
67,600
114,600
Forestry, fishing, mining,
Fishing, hunting and trapping
Real estate and leasing
Agriculture
Wholesale trade
Finance and insurance
Transportation and
Professional, scientific and
Restaurants
Manufacturing
Construction
Retail trade
2013 Private Sector Employment by Industry
Maritimes

9. 2013 Commercial Foodservice Sales Growth
Canada
4.6%
0.4%
2.7%
4.3%
7.2%
5.5%6.2%5.9%
6.1%
6.9%
-8.7%
0.9%
4.6%
9.3%
Source: Statistics Canada

10. Nominal Change in Foodservice Sales -
Maritimes
Source: Statistics Canada
3.7%
6.2%
5.7%
-1.0%
3.3%
-6.2%
2.8%
-1.2%
6.9%
2.0%
3.5%
0.8%
3.0%
1.0%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

11. Sales by Segment - Maritimes
2013/2012
1.1%
1.3%
-7.0%
11.3%
Source: Statistics Canada
In millions of $
$120.4
$176.2
$835.6
$1,390.2
Drinking Places
Caterers
Full-service restaurants
Quick-service restaurants

12. Sales growth by segment over time
Source: Statistics Canada
Cumulative change in per capita sales since 2003 - Maritimes
7%
25%
6%
-8%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
25%
30%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
Full-service restaurants
Quick-service restaurants
Caterers
Drinking Places

13. Restaurant Outlook Survey
72%
51%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Five in 10 respondents reported higher average food costs in January 2014.
Source: Restaurants Canada, Restaurant Outlook Survey

14. Restaurant Outlook Survey
Source: Restaurants Canada, Restaurant Outlook Survey
An increasing share of operators plan to raise their menu prices over the
next six months.
54%
46%
0%
10%
20%
30%
40%
50%
60%
Higher About the same

15. Profitability by Province
2.8%
3.4%
3.9%
4.2%
5.2%
5.2%
5.7%
6.7%
7.0%
7.1%
7.9%
Ontario
British Columbia
Quebec
Canada
Nova Scotia
New Brunswick
Prince Edward Island
Newfoundland and Labrador
Saskatchewan
Alberta
Manitoba
(Pre-tax profit margin as a share of operating revenue)
Source: Statistics Canada

16. Operating Expenses in the Maritimes
Source: Statistics Canada
Cost of Sales
36.8%
Salaries and
wages
34.1%
Repair and
maintenance
2.6%
Rental and
leasing
5.9%
Utilities
3.2%
Advertising
3.0%
Depreciation
2.6% Other
6.7%
Pre-tax profit
5.2%

17. State of the Economy

18. Real GDP Growth by Province - 2013
0.2%
0.9%
1.2%
1.3%
1.3%
1.3%
1.7%
2.2%
3.3%
3.4%
5.1%
New Brunswick
Nova Scotia
Quebec
Prince Edward Island
Ontario
British Columbia
Canada
Manitoba
Alberta
Saskatchewan
Newfoundland & Labrador
Source: TD Economics

19. Unemployment Rate by Province - 2013
Source: Statistics Canada
4.0%
4.6%
5.4%
6.6%
7.1%
7.5%
7.6%
9.0%
10.4%
11.4%
11.5%
Saskatchewan
Alberta
Manitoba
British Columbia
Canada
Ontario
Quebec
Nova Scotia
New Brunswick
Newfoundland & Labrador
Prince Edward Island

20. Consumer Confidence Index - Canada
Source: Conference Board of Canada
2002 = 100
0
20
40
60
80
100
120
Jan-07
Apr-07
Jul-07
Oct-07
Jan-08
Apr-08
Jul-08
Oct-08
Jan-09
Apr-09
Jul-09
Oct-09
Jan-10
Apr-10
Jul-10
Oct-10
Jan-11
Apr-11
Jul-11
Oct-11
Jan-12
Apr-12
Jul-12
Oct-12
Jan-13
Apr-13
Jul-13
Oct-13
Jan-14

21. Average Check Per Person – Atlantic
Canada
Source: The NPD Group Inc.FoodserviceCREST®Atlantic Canada12 ME November
2012 2013 Difference
Quick-service
Restaurants
$4.63 $4.69 $0.06
Family/ Midscale
Restaurants
$11.10 $11.60 $0.50
Casual Restaurants $16.05 $15.92 -$0.13
Fine Dining
Restaurants
$44.78 $41.30 -$3.48
Retail Foodservice $3.84 $4.57 $0.73
Total Market $5.93 $6.08 $0.15

22. Foodservice Forecast

24. 1.1%
1.3%
1.6%
2.0%
2.1%
2.1%
2.2%
2.3%
2.3%
2.5%
3.3%
0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5%
Newfoundland & Labrador
New Brunswick
Prince Edward Island
Quebec
Nova Scotia
Manitoba
Ontario
British Columbia
Canada
Saskatchewan
Alberta
Source: TD Economics
Real GDP Growth by Province - 2014

25. Nominal Change in Foodservice Sales –
New Brunswick
Source: Statistics Canada and Restaurants Canada
2.6%
4.3%
2.5%
2.0%
-6%
-4%
-2%
0%
2%
4%
6%
8%

26. Nominal Change in Foodservice Sales –
Prince Edward Island
Source: Statistics Canada and Restaurants Canada
2.1%
4.4%
2.1%1.8%
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%

27. Nominal Change in Foodservice Sales –
Nova Scotia
Source: Statistics Canada and Restaurants Canada
4.3%4.6%
3.2%
2.2%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
8%
10%

29. Restaurant Outlook Survey – Top 5 Issues
Impacting Operators in January
Source: Restaurants Canada, Restaurant Outlook Survey
52%
54%
55%
62%
67%
Weak economy
Bad weather
Credit card merchant fees
Food costs
Labour costs

30. Foodservice Share of the Total Food Dollar
40.1%
37.8%
38.3%
30%
32%
34%
36%
38%
40%
42%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013-p 2014-f
Note: Total food dollar includes spending by consumers, tourists, businesses, institutions
and government at foodservice operations, grocery and convenience stores.
p - preliminary; f - forecast
Source: Restaurants Canada and Statistics Canada