This week, we learned that drive-thru will be banned in the borough of Montreal North and that this decision will encourage many other localities to do the same. You'll find out why below. Also, a price freeze was announced in two very popular canteens in order to build customer loyalty. Did the experiment work?
First, Montréal-Nord has started the process to ban drive-thru throughout its territory, following the example of other boroughs of the City of Montréal such as Saint-Léonard in 2022. This measure aims mainly fast food restaurants. Existing facilities will not be affected due to grandfathering obtained in accordance with the zoning regulations in effect when they were initially applied for.
This regulation was encouraged by a 2014 court decision in which the borough of Côte-des-Neiges–Notre-Dame-de-Grâce won its case after a lawsuit brought by Tim Horton. The objective of this ban is multiple: to encourage a healthier diet, particularly for young people, to reduce greenhouse gas emissions by avoiding engines on while waiting, to promote green spaces by limiting the parking areas used for drive-thru, improve the safety of pedestrians and cyclists, and reduce noise pollution for residents.
Fast-food industry advocates point out that the move could impact investments already made and that drive-thrus could be useful in areas less well served by public transport. Despite these debates, the zoning by-law including the ban should be adopted in September, after following the public consultation process, and apply as soon as the certificate of compliance is issued by the Urban Planning and Mobility Department. Importantly, as of 2018, 27 cities in Canada have already passed a similar ban.
Then, the Chez Mag canteens on Île d'Orléans and Sainte-Anne-de-la-Pocatière decided to maintain the same prices for their customers this summer despite the cost increases in the products used. The owners have chosen to absorb these increases in order to retain their customers and increase their sales volume to maintain their profitability. This strategy has proven successful, as the restaurant's sales are up 18% over the previous year.
They also extended the season and opening hours to increase their income, without increasing the hourly wages of shareholders. By controlling their costs and increasing sales volume, they were able to keep prices affordable for customers and continue to offer their specialties, such as the lobster roll, at competitive prices.
This approach differs for each institution and depends on the management of costs and factors specific to each company. Restaurant operators face challenges such as rising wages, labor shortages, and rising food, container, and transportation prices, making balancing price and profitability tricky for industry.
