By Rosanna Caira
TORONTO ─ More than 400 delegates attended this week’s ORHMA Convention at the Sheraton Parkway Hotel in Richmond Hill, Ont. The third-annual gathering highlighted several panels throughout the day and hosted a marketplace featuring a variety of suppliers showcasing their products and services.
Kicking off the day, Tony Elenis, president and CEO, ORHMA, shared that the provincial association ─ the largest in Canada ─ is celebrating its 25th year of existence this year, with roots dating back to the Ontario Restaurant Association in 1925 and to the Ontario Hotel Association in 1927. Elenis said he’s “proud of the work we’ve done,” citing some of the major wins the association has had over the past year, including a 20 per-cent price reduction in beverage alcohol compared to retail, the implementation of delivery of beverage alcohol with food and to regulation allowing restaurants to extend patios in neighbouring/adjacent empty lot, which he said helped many operators during a challenging period. He also pointed to lower WSIB rates, saying that premium rates have dropped to their lowest rate in 20 years.
But the work is far from done, said Elenis, adding that the association is currently asking for further reductions in LCBO pricing to licensees, as well as help in ensuring that the new TBS agreement does not hold licensees hostage with beer pricing (restaurant operators are currently paying $10 more for a case of 24 bottles than the consumer price). ORHMA is also asking for a reduction in the Small Business Tax, a training rebate/subsidy for new employees and for energy savings that reflect the reality of hospitality operations that operate at full thrush during peak times as well as allowing electronic games in hospitality operations as an option.
Then, Irwin Prince, president and COO, Realstar Hospitality, took to the stage to highlight the importance of increased vigilance with Human Trafficking, citing the need for frontline workers to be more aware of the huge problem and for operators to ensure that more training and attention is spent on making employees aware of the necessary steps that can be taken to ensure the safety of all guests.
Michele Furgiuele, a victim of human trafficking then shared her story of being lured through social media and being trafficked across Canada. “I didn’t know what human trafficking was,” she stated, but “I now know the immense power to change people’s lives. Hotels provide a sense of security,” she said, adding they also hold the power to help make change in this area.
In the first session of the day, titled The State of the Industry and How it Affects your Business, Vince Sgabellone, director, Client Development, Circana and foodservice industry analyst, provided an overview of consumer spending trends over the past year, citing that restaurant spending is the number-1 area where consumers intend to cut back. Sgabellone said that 80 per cent of consumers have or plan to cut back spending on product purchases due to inflation, an increase of four points compared to June 2024 results. He pointed out several ways that restaurant guests plan to cut back on spending with 52 per cent claiming they plan to take advantage of promotions/deals while 49 per cent said they plan to eat and drink at restaurant less often. Forty-two per cent said they would order less-expensive menu options. With inflation top of mind, 18 per cent of consumers are choosing not to eat out because of affordability at restaurants. Sgabellone pointed out that average eater cheque growth has not kept up with the high rate of restaurant inflation.
According to the Circana analyst, restaurant traffic growth is projected to slow by seven per cent this year. Interestingly, Sgabellone said that the morning meal remains the largest daypart and still growing with 30 per cent share of visits. Late-night traffic has grown at three times the pace of total foodservice traffic while off-premise visits continue to be strong. Though Gen Z is pointing the way to the future of foodservice with the penchant to order more digitally and to use delivery more often, Sgabellone said that boomers remain a force too strong to ignore with higher eater cheques, more on premise visits, more FSR visits and less inclination to have low rates.
Nicole Nguyen, senior vice-president, CBRE followed Sgabellone’s presentation by providing an overview of the lodging market. She kicked off the session by showing business fundamentals from Ontario’s three major markets, pointing to occupancy of 72 per cent in 2023, the same figure in 2019, but up from 2021’s low of 41 per cent; ADR has grown from $178 in 2019 to $219 in 2023 while RevPAR has grown from $129 in 2019 to $157 in 2023.
Total overnight visits is projected to grow from 45,663 in 2019 to 49,645 in 2024. That number is projected to further grow to 51,128 in 2025 and then again to 52,167 in 2026.
