In this new edition of Fast Delivery, we are pleased to tell you about recent research on the subject of restaurants in rural areas and their impact on the local population. We will also discuss a restaurant which decided to lower its prices, despite the current economic situation, and the MTY Food Group which saw its last quarterly dividend increase.
First, Léo Blain-Tremblay, a master's student in management sciences at UQÀM and former restaurant employee, led a research project in collaboration with Professor Dominic Lapointe in which he explored the role of restaurants in the local social fabric.
The origin of his interest in this subject dates back to the pandemic, in particular to the health restrictions which had an impact on the celebrations of New Years 2021 and 2022 at Brise-Bise in Gaspé, where he had worked. The central question was whether restaurants have a responsibility to provide their community with a place to gather.
The research is notable for the lack of studies on the social and cultural impact of restaurants in the region, unlike microbreweries. Léo Blain-Tremblay underlines the importance of the social responsibility of restaurants, going beyond philanthropic donations, by providing a place to live and meet, particularly crucial in places with few public services.
The closure of the only year-round restaurant in Natashquan in 2022 illustrates the loss felt in these remote areas, showing that restaurants are more than just providers of food.
Regarding the impact of tourism in rural areas, Dominic Lapointe emphasizes that the catering offer can be enviable in summer, but it remains difficult to access for local residents due to the influx of visitors. He also mentions initiatives, such as a platform in the Îles-de-la-Madeleine, aimed at informing locals of restaurants open during the winter season, which is less conducive to tourists.
However, in villages with few establishments, the issue remains spontaneous access for the local population. The example of Percé in Gaspésie, with its summer influx contrasting with the winter shortage, highlights the challenge of maintaining a constant supply for residents all year round.
Then, Juan-Carlos Huard, new owner of the fast restaurant Patates Plus in Val-Bélair since November 2023, aims to maintain the status of this institution founded in 1984 by Florent Montreuil. In an effort to remain competitive, Huard decided to reduce meal prices, particularly those of poutine, spaghetti and cheese sticks, by 3 to 15%, while maintaining the company's profitability.
This initiative has raised concerns among some customers about a possible reduction in quality or portions, which Huard has tried to allay by assuring that the goal is to maintain the same recipes, quantities and quality.
In order to optimize costs, the new owner reviewed all of the establishment's operations, adjusting opening hours, reducing the number of employees on the floor, removing certain dishes from the menu, refining working methods. and favoring online orders rather than by telephone.
According to Huard, Patates Plus had not adapted its operations to the new market realities, both operationally and financially. Despite the adjustments, he remains confident about the future of the fast food restaurant, emphasizing that this sector is less impacted by the economic situation than the banners offering table service.
Finally, MTY Food Group announced a 12% increase in its quarterly dividend, bringing the amount to 28 cents per share, compared to the previous amount of 25 cents per share. This decision follows record results during the first nine months of 2023, according to CEO Éric Lefebvre. The acquisitions of Wetzel Pretzel’s, Sauce Pizza and Wine in the first quarter of 2023, and BBQ Holdings in the last quarter of 2022, are cited as factors contributing to the company's improved results. MTY, which franchises and operates quick-service and table-service restaurants, operates under more than 90 banners in Canada, the United States and internationally, with its shares closing higher at $55.67 on the Stock Exchange. Toronto.
