F R Y D AY BUSINESS PL AN CALE B LEU NG DECE MB E R 2 , 2015
F R Y D AY 42 Lancashire Road 647 716-9680 Caleb Leung 42 Lancashire Road 647 716-9680
TABLE OF CONTENTS
4
Wordmark
6
Summary
7
Company
11
Product
14
Research
24
Marketing
29
Finances
30
Operations
34
Appendix
every day is F R Y D AY
every day is F R Y D AY
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BUSINESS SUMMARY My name is Caleb. I am an entrepreneur who is finishing fourth year in OCAD University. My company, Fry Day, is a food truck that specializes in creating unique Deep Fried food experiences within Toronto and its surrounding areas. This results in us being a large part of Toronto’s urban street-level growth, and allows the people of the city to engage in a new, burgeoning streetscape revival that goes beyond trend and novelty. While Toronto undergoes the largest construction boom in North America, it suffers from a lack of city culture, and a large part of this is its unyielding street laws that prevent the public realm from being alive. Fry Day aims to bring life to this diverse city through serving our own take on Toronto’s multitude of food and adding another dimension to it. We do this by offering tailored menus with deep fried items as the entree. This may sound like a greasy mess, but in reality, properly deep fried food is a sensory experience in both the item and the batter, and isn’t heavy and heart-stopping, but crispy, light, and delicious. We serve the instagram-crazy, self-proclaimed foodies of the city that live through their social media but love trying new and strange things. They are professional, young, and finishing university or starting work, but are constantly in search of the CNE-esque carnival thrill, and we will be able to offer them that year-round. Beyond downtown Toronto, we will take our food truck to food festivals and engage with local communities, bringing a piece of their diversity into what we serve. I want my food truck to thrive and be able to inspire others to take more of an interest in this city and its vibrant people. I can imagine a future when we get invited to other cities, and they see us both as distinctly Toronto, and distinctly ourselves. Deep fried food may not seem like much, but when it is injected with the flavours and personalities of this city and its people, it can go a long way.
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COMPANY
will aim to service two specific groups that fall under the specific target market (details on page PAGE): the young working class and the post-secondary student.
LEGAL Fry Day is a food truck, taking the simple concept of CNE carnival food and refining it into a gourmet experience. The main gist of it, simply, is that it sells a variety of deep fried food. In detail, it is a food truck that celebrates Toronto’s diversity through an equally diverse set of ever-changing menus. Not only are the menu items on rotation, but Fry Day will also feature a variety of batters to really create an unique gastronomic experience. Fry Day’s combination of choose-your-own batters and fresh, local, food will satisfy Torontonians who are always looking for something new. The food served will not be a deep fried, greasy mess, as most come to expect from food trucks serving a few deep fried items as part of their menus. Instead, as a gourmet food truck experience, Fry Day will utilize inventive culinary techniques to ensure the delicate craft of deep frying is explored and appeals to customers’ distinguished palates. In addition, innovative approaches to customer reach will see Fry Day partnering with local businesses and local events to serve food. This means there will always be a bridge of deep-fried goodness to connect the city to its streets. Fry Day will operate under a office base situated at my house, with main day-to-day operations being carried out in the physical, mobile site which is the food truck. Upon launch, Fry Day will focus on three areas within the downtown core to maximize potential customer reach, presence, and familiarity before branching out to other locations. This is to ensure the business is not spread too thin, and remains respectable to the food truck industry and fellow food trucks. These locations
Fry Day operates under a series of business and trades licences according to city of Toronto rules. Required licenses are as follows: Motorized Refreshment Vehicle Owner Licence. Mobile Food Vending Permit. Public Health Inspection pass. Driver’s License + assistant licenses. These licences will allow Fry Day to operate within the city’s bylaws as follows: Food Trucks can operate on public roads, private property, in commercial and Green P parking lots. They can operate on private property and in parking lots with the permission of the property owner and in accordance with the commercial zoning bylaw. All pay-and-display stations on major, minor arterial and collector roads are open for operation as long as they abide by all relevant parking regulations, and pay for parking. For curbside vending, however, food trucks must not be within 30 linear metres of a restaurant. For special events, food trucks only require a business license, as the event organizer should have prepared Special Occasion permits. As a sole proprietorship, I maintain legal responsibility for Fry Day’s operations, as well as its financial losses and gains. However, I also have the obligation to repay my investors (family and entrepreneurship program loans).
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VISION STATEMENT Fry Day is a deep fried food truck experience that engages in and revitalizes the stale street culture of Toronto by serving food that inspires a city to connect with its streets.
MISSION STATEMENT Fry Day’s fleet of food trucks operate within Toronto’s eclectic districts. With our ever-changing deep-fry menu, we evolve as this city’s food and taste does, having established ourselves as a unique aspect of Toronto culture that speaks of our city’s diversity.
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CORE VALUES FOOD IS A SUPERPOWER. Not just because it literally saves lives—think about the last time you got mad because you didn’t eat. A happy belly is a happy felly, and that’s the core of why food— and Fry Day—brings people together.
KEEP IT FRESH. This one’s our cheesy core value, but as a deep fried food truck, we have to embrace our city and culture’s ongoing evolution. That’s why we’re committed to whatever wacky food trend Toronto will embrace—who knows what we’ll be deep frying in ten years?
RUN AWAY WITH US. We want to be embody that feeling you get as a kid (or maybe even now) as the ice cream truck rumbles down the street—except that simple thrill is elevated into this kick-ass multi-sensory deep fried madness.
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KE Y PE RSONNE L I’m Caleb. I’m the founder of Fry Day. I grew up in Scarborough before moving to Markham, but I always loved the city. There was something about Toronto that made me incredibly proud of it—the way the downtown core emptied out at around ten and if you wandered it, it felt like you ruled it. In the process of studying advertising at OCAD University, I have learned a great deal about consumer engagement, human truths and creating experiences, amongst other things, and a lot of this has dealt with Toronto. I long wondered if there was a way we could stimulate street culture and introduce some sort of continued everyday excitement to this city. One fateful Nuit Blanche, i was wandering the deserted streets at four in the morning when I chanced upon a small, punny poutine cart with a sizable crowd surrounding it, and that’s when the beginnings of Fry Day sparked within my mind. My advertising and creative side nurtured this into reality and I began to see how something as simple as food truck that bends the rules a little could begin the transformation of a city and its streets.
The initial branch of full-time employees will include a truck driver and a line cook/cashier, and myself as the overall manager. I will be in charge of all the design elements including website, truck branding, signage, etc., handle the social media accounts and update the website information, engage with customers, and maintain and form relationships with potential Fry Day partners. My multifaceted and multitalented team and I will work the deep fryer and cash section on rotation, and the truck driver will drive the truck as well as help out with cash if necessary. We will all work together to think of new menu ideas, outfits, and promotional material, so my team needs to be passionate about food trucks. They will likely be people I know and trust already.
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PRODUCT Fry Day’s first food truck will likely be purchased off Craigslist or Kijiji, or rented if there are none that fit the budget and basic requirements. Assuming we are able to purchase, we will need to configure costs for printing vinyl that will cover our truck signage areas yellow, with our logos and branding in white and black. The rest of the truck will also be painted yellow. We will have to purchase a base refrigeration system that will be able to hold basic supplements, and retrofit the truck to include deep fryers, generators, counter space and storage. Our external suppliers will service our general needs, like cutlery, cups and plates and bulk ingredients. While our ingredients will not be solely organic by any means, they will be of higher quality and be more eccentric than the basics. Our rotating menu means we will always have to purchase as necessary. Due to low storage space, which is common in food trucks, we will not be able to purchase fresh or dry ingredients in too much bulk anyway, meaning that this will not run us into deeper costs than expected. Food will be purchased from both large chain supermarkets and local grocery stores. The general ingredient breakdown goes as such: Signature batters These operate on longer rotation, meaning we change them up as they run out. Our signature batters are prepared with dry ingredients first, as a mix, and then the wet ingredients are added daily so batters are prepared fresh each day. Most of our storage will go towards these, which would be staples like flour, eggs, milk, salt and sugar, along with the spices and specialties we will add to the batters.
Oil The standard oil we use will be coconut oil, which is not only healthier but will allow us to create a depth of flavour that canola oil can’t. Also, coconut oil lasts much longer, with even eight hours of continuous high-temperature deep frying not deteriorating the oil’s quality. Fresh, daily foods These are the featured menu items that change depending on location and are purchased fresh each day. There is enough temporary storage space so that they remain fresh throughout one working day, but we anticipate to find the perfect balance between items so that we sell most or all of the perishable food each day. Food left unpurchased will be donated to the homeless or to shelters as possible. As part of our commitment to the city, we will develop an innovative way of serving our food that is eco-friendly (recyclable) but holds the food and condiments for easy transport. These will all be branded nicely and designed for easy consumption as well as social media sharing.
PRODUC T/MATE RIAL OVE RVIEW Once the food truck is acquired, it will be retrofitted through Silver Star Metal Fabricating in Mississauga. This includes adding a deep fryer station with five smaller compartments, refrigeration and storage, counter space and power generators. Since I will be doing the branding work, I will not need to hire a graphic designer, but the wraparound will need to be printed (probably vinyl, at a specialty large fromat print shop).
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Initial product inventory includes the dry and wet ingredients for the batters, drinks, and nonperishables. Our fresh ingredients are measured on a day-to-day basis. Goldrich Printpak Inc. will handle the manufacturing of our custom-designed packaging, including plates and napkins. We will not have a set uniform (we will create our own lookbook style planning guide based upon colour so we are always matching but wearing whatever we want). In addition, kitchen accessories like pots and pans, spatulas, serving equipment and the like will be suppied by Costco or a similar wholesaler, and we will need a specialty fire extinguisher, which can be purchased from Uline.ca. There are miscellaneous materials like menu boards, chalk, pens and paper; some of these I already have on hand and others will be purchased as needed. Our advertising mostly sits in the social media sphere, which means Instagram, Twitter and Facebook are our free media. This is driven by our website, which will be run through Squarespace. We will convert an old iPad to a Point-of-Sale system through Shopkeep. We will be tethering through a phone for internet, which means I need to upgrade my smartphone to a high-capacity LTE unlimited data plan. Fuel and maintenance can also be factored in as materials needed, and we will stock up on gas wherever it is cheapest. Daily food stocking, for our fresh ingredients, will heavily depend on what is being served. In general, we will make a morning shopping trip to any of the city’s large supermarkets—Loblaw’s, No Frills, Wal Mart, Costco—paying attention to weekly discounts and savings. This, of course, depends greatly on timing and location. For example, if we are serving the Financial District in the afternoon, then we have
more time to go out of the downtown core and make purchases. The food purchased here will be more general, especially if there are opportunities to buy food from local grocery stores. Typically, our main food items will be sourced locally, as this is important to our mission and vision, as well as part of our core values.
SE RVICE OVE RVIEW Fry Day will sell seven types of dishes per location served. Six will be arranged by the team, and one will allow for customer choice. Four of these dishes sit on a rotational schedule depending on the area being visited, and two will be ‘best-sellers’ that rotate on a broader schedule. The dishes exist of one main element, which is the protein or vegetable being deep fried, a choice of batter and a complementing side. Beverages are sold separately. The element of choice comes in for which batter customers choose, out of four (three of which are on rotation based off of what is being served that day, and one standard signature batter). These batters are accompanied by seasoning and fixings (the best analogy would be a wings restaurant, where wings are the main and fries or slaw are the side). These types of dishes are further broken down into portion sizes. There will be regular and large choices, at different price points. Menus will promote the full dish experience, but will also give customers the choice of purchasing mains only, and adding additional sides. The customizable dish will allow for customers to experience more variety, as well as share with others easily. A typical interaction will have the customer choose their dish, for example, deep fried avocado and brie
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thins on polenta. A regular portion would have five pieces, a large would have eight. The cashier would recommend a type of batter and briefly describe the other types, and then the customer would choose. If they wish to swap out the side, or only purchase the mains, accommodations would be made, and then beverage options would be presented. There will also be promotional pricing, both around seasonal events like holidays, and at times when business would be slower (like winter). Furthermore, in the first few months of business, we will offer group promos that allow people to share (for example. ten skewers) which exist outside our regular pricing, so that customers can try our food without having to purchase an entire meal for themselves. When Fry Day has established itself in the city, our pricing will become more flexible for certain events, especially when involving marketing stunts that connect with our consumer base and partners. For example, if we were featured at a seafood event, we could serve entire lobster tails deep fried (which would cost more than our regular pricing by far).
SAMPLE ME N U ITE M & PRICE Main: Kale-wrapped Squid Tentacles Side: Sesame Soy Collard Greens Batter choices: Original, Cornflake, Ground Pretzel, Cheese $7 for regular portion, $9 for large. Main only: $5.5 for regular portion, $7.5 for large. Side only: $3.5 Drinks: $2 A detailed cost breakdown can be found in the Finances section.
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INDUSTRY
of their food also helps, as the “on-the-go” perspective becomes reinvented in several of the most popular food trucks to appeal to more sophisticated tastes while remaining as mobile as fast food.
The food truck revolution largely began in the United States, starting in 2008 in Los Angeles and leaking over as it grew in popularity and captured a Canadian audience. A testament to its growing following is the surprising resilience in which the industry has boomed, taking into account the strict vendor laws that are still in effect even as the number of Canadian food trucks have soared.
Canadians, it seems, prefer independent restaurants over corporate chains. A Vacay.ca survey on favourite restaurants in Canada found several interesting results that directly relate to the burdgeoning food truck culture:
The market opened up to food trucks as the economic recession of 2007 made it difficult for brick-andmortar restaurants to operate. As a combination of cultural growths, shifting millennial preferences and the rise of culinary tourism helped feed the food truck craze, perceptions of authenticity and adventure encouraged others to jump on the trend. In the US alone, analysts predict a $2.7 billion revenue from food trucks by 2017. 1 While the Canadian scene is far less developed, there is still an expected growth to $300 million over the next five years. As of July 2015, there are around 309 food trucks across the nation, with Toronto taking a meager 32 trucks of the share. Vancouver, Edmonton and Calgary have taken the lead in endorsing food truck culture, but the effect is slowly trickling over to the eastern provinces. 2 Toronto is notorious for its strict licensing fees and curbside regulations. Yet, this has created a cult following-style appreciation for the food trucks; they command a large part of the social media sphere and attract foodies, local and abroad. The food truck industry does not exactly flourish here, but it stays strong thanks to its dedicated owner-customer relationships. As such, the industry relies on this very street-level sort of connection to capture what brick-and-mortar estaurants cannot. Customers return to food trucks because they feel a more authentic, independent spirit that is captured in the travelling aspect of food trucks. The portable nature
Restaurants run by small-business owners gather a serious sense of loyalty that helps make them desirable in the eyes of Canadians. Local food movements change the way Canadians eat—whether its nutrition, quality, taste or innovation, it matters that restaurants do not follow a mass-marketed menu and provide culturally sensitive flavours and experiences. Service is more attentive and gracious because the owners are often the chefs, and are much more passionate. For an independent player in such a large industry, the aspect of relationships becomes much more significant and in turn fosters that loyalty described above. 3 The niche that Fry Day operates in stems from this collective of independent restaurants, because the attitudes and reactions drawn from them have directly translated to the food truck industry. It also draws directly from the mom-and-pop style shops that are all the more relevant as big-box condos and international brand retailers threaten their existence. Most of Toronto’s food trucks operate in this environment, but they can be further separated into specific operation styles—again, largely dependent on their reaction to Toronto’s licensing rules and 1 Intuit Food Trucks Report: Food Trucks Motor into the Mainstream. Pg 1. 2 Global News Article: Vancouver, Edmonton two of biggest players in Canada’s food truck scene. Patricia Kozicka. 3 Huffington Post Article: Why Canadians Prefer Independent Restaurants. Adrian Brijbassi.
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regulations. The first group is as ‘large-scale’ and corporate as food trucks in the city get. These are mobile iterations of successful, yet still national chain restaurants, and operate as an extension. Smoke’s Poutinerie would be an example. These offer tried and trusted food accepted by Canadians as part of cultural identity (e.g. poutine, beaver tails) and are able to capture customers because people already love what they serve. Those unfamiliar with the city likely gravitate to these trucks if they want to feel adventurous or satisfy a craving. The second group is comprised of non-licensed food trucks. These do not have clearance to operate on most city streets, and thus make their presence known through corporate and private events, festivals, and parking lots. They are the original crop of successful ventures in the industry, and several are so vehemently against Toronto’s licensing laws that they will never purchase a license and will continue to operate based on location specific industry events. 1 The third, and the niche in which Fry Day will exist, is made up of licensed food trucks that broadcast their locations on a day-to-day basis. These do participate in private events as well, but make most of their livelihood from servicing the Toronto streets. An important differentiator in this category is their need to have more constantly revised menus, so that patrons continue to be invested in ‘unique’ food choices. Licensed food trucks are more of a rarity in Toronto because many will not pay the $5000 price to allow curbside vending. (This fee adds on to a bunch of yearly licenses that must be renewed for legal food consumption and vending in the city). As such, it is a market ripe for growth, and food trucks tend to not be outright competitive like restaurants, but are supportive of each other. 2
the formalities that restaurants and even fast-food chains have to adhere to, and this lends to much more natural interactions. It seems that people feel inclined to share more of the actual food truck experience over just a shot of food, and this helps us understand why people love seeking out food trucks. Social media, of course, is a large part of the industry, as it functions almost as the second half of all the successful food trucks. Again, this reinforces that this is more than just about food— there’s a large aspect of community and digital and physical interaction.
TRE NDS IN - DE P TH Toronto follows many of Vancouver, New York, Seattle and other major North American cities’ trends. However, it does bring some of its own flavour to what becomes popular, mostly due to the infusion of minorities and their distinct cultural and geographic profiles within the city. Most importantly, there is a rising belief that culture is best experienced through food. As the Ontario Culinary Tourism Alliance states: “Food serves to connect us with the land, our heritage, and the people around us. It is a diverse and dynamic channel for sharing stories, forming relationships and building communities. By combining local food and drink with travel, food tourism offers both locals and tourists alike an authentic taste of place while contributing to a sustainable world economy.” 3 This food tourism trend is bolstered by everything the food truck industry stands for: authenticity, localism, mobility, and adventure. Data from Brand USA’s international market study shows that for Canadians, 40% of the time spent during a vacation was spent on food. Other countries showed similar results. 4 1 Toronto Sun Article: Sales of Food Truck Permits Fall Flat. Shawn Jeffords.
As previously mentioned, relationships are a large part of the industry. Food truck owners are not trapped by
2 The Globe & Mail Article: Full stop on the revolution: Why Toronto’s food truck scene keeps falling 50 metres short. Ann Hui. 3 Skift Report: The Rise of Culinary Tourism. Pg 3. 4 Skift Report: The Rise of Culinary Tourism. Pg 11.
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This idea of searching for food manifests itself even as urban explorers go about their daily lives in their local cities. “Local tourism” has exploded across social media and food is definitely a major contributing factor. Clearly, the culinary world makes a large part of tourism, and the rising vitality of food trucks correlates to this directly. People are willing to travel out of their comfort zones for food, and are in turn more eager to explore their own local areas for new and interesting ideas on food. In terms of food choices, this leads to certain trends that could be both beneficial and troublesome for Fry Day and the food truck culture as a whole. As for specifics in Canada, Innova Marketing Insights lists convenience for foodies as one of 2015’s breakout trends. This means, in their words: Continued interest in home cooking has been driven by cooking shows on TV and by blogging foodies. It is seen as fashionable, fun and social, as well as healthy and cost-effective. It has driven demand for a greater choice of fresh foods, ingredients for cooking from scratch and a wider use of recipe suggestions by manufacturers and retailers. 1
which is an extremely general term that pertains to anyone aged 13-35. However, a large part of their entry into a digital driven, tech-savvy and social mediaoriented world is that they are less brand loyal. Instead, they want to “connect with products and brands and know the story behind them.” 1 This suggests that authenticity is key to how food trucks must operate, but beyond that, it means the generation being reached needs to constantly be fed. The new and noteworthy become bottom-of-the-barrel in a few months’ time if they do not find a way to continue to communicate with their clients’ lifestyles. Lastly, specifically pertaining to food trucks, sustainability is a large part of not only creating a long-term cost-effective business, but attracting loyal consumers. Many offer discounts to those who bring their own utensils or water containers, which help to reduce waste. Several choose to connect with biodiesel facilities that can convert their used oil into fuel. Most importantly, sustainability means choosing local. Some food trucks source and grow their own fresh ingredients (at the owner’s actual home), or shop within the area they are serving to reduce waste. 2
This means that food trucks will increasingly have to offer items and experiences that are difficult to reproduce in the home, or cater to some convenience that convinces millennials to choose eating out over cooking.
These trends are important to a vital and thriving food truck venture because they engage with the city and culture of Toronto, or whichever area they operate in, and are platforms from which individual culinary storytelling can emerge.
However, to offset this trend, is the rise of gourmet snacking and a deeper understanding of healthy fats. Innova Marketing also lists these trends as rising quickly, and it makes sense with conjunction into people cooking their ‘real’ meals at home. The super health vegan trend is giving away to truth, where many understand now that a balanced diet with good carbs and good fat is essential as opposed to a strictly carbfree regime. 1
1 Canadian Food Insights Article. The 2015 Trends Impacting the Food Industry. Lu Ann Williams, Director of Innovation at Innova Marketing Insights. 2 Restaurant Central Article: Trends in sustainable food trucks. Janine Windsor.
Two other important food trends involve ‘millennials’,
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ME N U DESIG N The largest unforeseen challenge that Fry Day will have to weather is the fact that rotating menus are a large part of most food truck’s USPs. This means that there is a large possibility that majority of the competitors will be rotating along with the same food trends, at the same time. This makes the pool of consumers exceedingly more complicated, and makes it much harder to stand out. Essentially, good food is not enough. The restaurant landscape is as saturated as ever, and will only continue to grow more and more (restaurant being used as an all-inclusive term).
CUSTOMIZATION To counter this, Fry Day will have to focus on the customizable aspect of allowing consumers to choose their own batter, as well as emphasizing the local and fresh aspects of the particular areas that are visited. While competitors like Me.N.U and K-Bop bring cultural flavours, the main difference is that they contain one or a fusion of a few cultures at once. Fry Day, on the other hand, adapts to the cultural nuances of where it is serving food, via what is being deep fried.
NOVE LT Y/INVE NTIONS Another area that has to be addressed is the novelty aspect. Using We Got Balls as an example, they have been in business since 2012 selling only meatballs. What changes is the flavours and platforms that the main item is carried on (e.g. bun, toppings), and that is how they keep customers coming back for more. Fry Day will have to very strategically include a good mix of tried-and-true items that people will want to indulge in long term. This may seem to go against the whole adapting to cultures idea, but if mixed in properly to the menu, it will enhance the overall branded experience. Furthermore, it will allow returning and new customers to identify food items that they have seen or heard about on social media and want to try,
instead of always being caught in a guessing game of what is next (which will bore people after a while).
SOCIAL ME DIA Of the five selected competitors, four have mediumto-strong social media presences. All have a similar model of announcing new locations that was originally proposed as one of Fry Day’s ‘unique’ engagement opportunities, meaning that it is not very unique. While this is still going to be done to ensure people know where to go next, Fry Day needs to develop an additional strategy for letting people feel like they are a part of the mobile experience. In fact, this whole idea of experience is one thing that can be explored more, because all of the competitors find it difficult to be authentic while trying to promote and sell things. The best at doing so is Me.N.U, who are able to engage customers on their journeys back to Asia and the West Coast and generate some mild buzz in terms of when they return for service.
OPPORTU NIT Y The best opportunity for Fry Day to capture and recapture consumer attention is to engage with their lifestyle. The food truck is mobile, and as such is cannot be seen as a destination but as a touchpoint. Fry Day needs to weave itself into the target market’s journey. This is why pushing collaborations with hole-in-the-wall bars, and reaching parking lots, are important ways of engagement that allow Fry Day to be present at the right moments. These are the areas that need to be focused on if Fry Day is to succeed in the increasingly complex food truck industry.
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CHANNELS OF DISTRIBUTION Fry Day’s primary offering is deep fried food that is continually exciting, continually changing, and always fun to experience. Branding will reflect this spontaneity and thrill, and this will translate across our websites, social media, tactile (actual food truck), collateral, and packaging. All of our advertising will occur across our digital platforms, as word-of-mouth, Toronto websites and blogs will help drive our marketing ecosystem. The main channel of distribution, of course, is the food truck itself. This is where customers buy food, interact with us, and help foster Fry Day’s social media presence. Our website is our secondary home, on which consumers can connect with us as they engage in their digital lives. It is also how locations, times and menus will be announced, and will be heavily interconnected with our social media accounts. There are several food festivals, food events, and corporate and private showings that welcome food trucks and will help bring recognition to our food. Fry Day will participate in a few of the major ones, namely in the Toronto Food Truck Festival and the Food Truck Frenzy.
TORONTO FOOD TRUCK FESTiVAL Held annually at Woodbine Park, on August 1 and 2, several of Fry Day’s competitors participate. As a food truck exclusive event, TFTF is curated so that each truck selected provides a unique element to the customers. The participation fee is lower than the $1000 average at $800. This is the event that boosts startup food trucks and helps them reach a professional level; it is almost a benchmark of reaching a certain level of success in the industry. 1
However, it does come with a few problems; namely, it is in Woodbine Park which is removed from Fry Day’s core target area. This has its benefits, as it brings a wide range of suburbian and urban individuals and expands the potential customer base. On the downside, it could turn out that most of the target market does not care about leaving the city to experience a few hours of a few food trucks.
FOOD TRUCK FRE NZ Y The CNE, on the other hand, is right in line with what Fry Day is trying to redefine and transform in terms of food culture. It will be held from August 9 to September 15 in 2016. This event will be almost like a trade show, where the items sold would represent a collection of the most successful and most popular combinations. The audience reach here is a good mix of commuters and downtown urbanites, which adds to Fry Day’s opportunities as well as its credibility as a food truck. Fry Day’s main competitors are an annual part of the Food Truck Frenzy, and are successful both in media coverage and sales. With 1.3 million visitors and $69.3 million total revenue each year, the CNE is a great platform on which Fry Day can assert itself as a major part of the food truck landscape. 2 Participating in the event does have its downsides; namely cost. It is likely that in the first two years CNE is not a viable option until some capital is made, as base vendor fees are around $4000. Furthermore, many events will cost an additional 1520% of sales to the event organizers, which is why Fry Day must be selective.
INNOVATIVE CATE RING These and similar events, as well as privately catered ones, are the competitive standard. However, upon 1 Toronto Food Truck Festival Application Form. 2 CNE website: Economic Impact page.
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reviewing the legal requirements for food trucks, and remembering Fry Day’s purpose to engage with the streets of Toronto primarily, there are unseen potential opportunities. Public parking lots, for example, are up for grabs as long as the appropriate parking fee is paid. Additionally, private parking lots are also up for grabs. The only requirement in both these cases is remaining 30 m away from a restaurant, but there are several areas that fulfill that requirement. 1 An important consideration is that this distance rule does not apply to private property—as long as it is zoned for commercial space, and the owner allows it, Fry Day can operate on it. The only thing remaining is collaborating with the owners of these spaces. An example could be an art gallery special event or hole-in-the-wall bars. Perhaps a whole collective of local artists getting together could include Fry Day in the artistry. There are so many such events in Toronto, and reaching some sort of agreement as a replacement to standard catering would provide both sides with a truly special way to connect the city and strategically enjoy the benefits of such a business partership. As an example, there are weekly farmer’s markets throughout several of Toronto’s neighbourhoods during the summer. If Fry Day can reach a partnership agreement with the organizers, we can base our entire menu off deep frying local produce that we have purchased on the spot. This not only creates revenue for both parties, but stimulates the community while elevating the gourmet aspect of Fry Day. It is moments like this where we can think a little outside the plate and forge meaningful relationships that will make Toronto’s streets a more interactive place. 1 City of Toronto: Food Truck and Mobile Vending Permits.
CUSTOMER ANALYSIS
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food they have to try. Inadvertently are either foodies or know foodies—whatever the case, they are curious and like to eat. The office environment mentioned previously is important, because these individuals are likely to enjoy lunch and breaks communally. This fosters a sense of sharing and multiple touchpoints from which Fry Day can enter the social media, web and blogging sphere of potential consumers (both from their personal and professional friend networks).
Fry Day’s main target customer is 20-35. They either live within the downtown core or spend most of their life there. They are either in the midst of completing post-secondary education, or have graduated and are in their first exciting big-city job. Specifically, this falls within downtown universities and colleges like OCAD University, the University of Toronto and Ryerson. Likewise, Fry Day caters to workers in offices, firms and agencies, especially ones that foster more openconcept and communal environments. This individual is smart and savvy, but enjoys socializing and is heavily engaged with a multitude of social media channels. These include, but are not limited to, Facebook, Snapchat, Instagram and Twitter. More importantly, the people they follow or the posts they create/share are generated around urban discovery. This includes photos of new places, artistic (and occasionally overfiltered) hots of themselves in urban backgrounds, selfies, and of course, food photos. In addition to social media, they are heavily engaged in Tumblr, Pinterest and blogs that frequently feature exciting new food. These include BlogTO, Narcity, Huffington Post and Toronto Life. Well versed in all the top-ten lists of best new restaurants, cheapest new restaurants, etc., they frequently make lists of
They are health-conscious individuals, in that they use the gym once in a while, take walks, exercise lightly, and try to eat balanced diets. However, they are not health freaks; at most, they will embark on occasional diets (usual as a group) for fun, and then abandon them shortly. Due to their education levels as well as the news they read, people they follow and admire and environment they work in, they are more knowledgeable and scrutinize what they see in the news. For example, they would be the type that shrugs at the fact that recent studies show that red meat causes cancer, acknowledging that anything out of moderation is probably going to cause cancer. By 2014 employment survey estimates, 315,692 people are working in an office downtown. This represents 65.4% of the total downtown workforce. 1 Since the last census, in 2011, there were 596,486 people amonst the ages of 20-35 in Toronto. If by city of Toronto estimates, the total number of employed people is 1,384,390, around 43% of these are in the 2035 age group. 2 Thus, of the 315,692 people working downtown in offices, approximately 135,748 of them are in the target age group. (In addition to this, there are around 87,838 post-secondary students in the city). There is, of course, no sure way of identifying exactly how many of the target exists in this demographic, but 1 Toronto Employment Survey (pdf). 2014. pg 12. 2 Statistics Canada Census Profile. 2011.
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this is a sure indicator that there are a lot of people who are young, working, and potential consumers for Fry Day.
“ DALE ” (derived with real examples from the office environment that I work in)
Dale rushes off the subway platform, nearly running into a man who has some sort of makeshift product sample table at Bloor station. He sees the man gesturing to the samples, grabs a granola bar (“only 9 wholesome ingredients! Nothing more!). and rushes out of the station. He mindlessly rips open the package and takes a bite. It tastes bland, as if literally 9 ingredients were mashed together. He grimaces but knows he needs something in his stomach before the two hour meeting. Jessica greets him on the way in. “Late again,” she laughs. He laughs back; it’s become a running joke ever since he missed daylight savings a few weeks ago. He nearly forgets that its only a half day for him today; he has class at 2 pm. It’s days like this that he wishes he was done school already. Dave has a part-time student position at a mid-sized media agency on Spadina. It’s been almost a year since he scored the job; he’s grown to love the work and people there even more than school. “Oy, what’s for lunch?” Jackie, in finance, nods at both of them as she scurries to her section of the casually laid out meeting tables. Their department manager, Erik, hears from the other end of the office and laughs loudly. “Yea, what is for lunch? I’m starving.” He whispers in their general direction to start making a lunch list, before the director of marketing starts the meeting. He keeps drinking water throughout, mostly to curb the impending growl of his stomach. Thankfully, Jessica’s goes first. A few of them snicker, and she
passes a corner of her meeting notes. On it are possible lunch places. The marketing director suddenly announces the meeting is over (20 minutes early!) and the mass exodus back to their desks begin. Dale snaps a video of them walking back to the office, captioning that he’s “hungry uggggh”. He catches Jackie’s face in it in the last second, and the all the coworkers he snaps it to laugh at how hungry and sad she looks in that one accidental second. “I’m not feeling any of these,” Jessica groans, and crumples her food list into a ball. Dale checks his to-eat list. It has several weird restaurants from a recent BlogTO post about the top ten new things to try. Erik goes back to his corner of their area and pulls up Yelp and Zomato, switching between the two as he checks for food in the area that might seem interesting. Dale hovers around his coworkers, scrolling absentmindedly through Instagram posts. “Let’s just go for a walk and see what comes up,” says Jackie. “You have school soon anyway, so whatever we eat has to be kind of quick.” “Ugh, screw school,” Dave laughs, as he and his coworkers head out. He catches a glimpse of someone’s Instagram post as he’s about to put his phone away. It looks like something deep fried, covered in some sauce, on a bright yellow background. His stomach grumbles again.
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MARKETING
cost-free promotion. This is why we are focusing on developing a strong web presence, so that it is easy for people to see conversations about Fry Day online, which help entice them to follow us or actually visit us.
Fry Day serves a significant gap in the food truck industry in that it doesn’t try to replace the restaurant as a dining option. Rather, it operates closer to the small food stands that sell individual items at a gourmet market or food festival—it does one thing (or rather, one type of thing) really well. This one thing, of course, is under a large enough umbrella that people will never get bored of the food we offer.
We will publish our time and location to Instagram, Twitter, Facebook and our website every morning, around 7am. This ensures that our target market, checking their social media for last night’s posts while on their commute, will likely see it. Around one hour before opening, we will post an image of our main menu item, on our social media accounts, linking this to the website that again reiterates our location and time.
PRIMARY STR ATEGY Fry Day’s primary promotion strategy blends word-ofmouth with a careful online presence. As such, first and foremost it is necessary for us to have a website up and running. The website will feature a main page that has location, time and menu options. A side bar that pops out when the customer mouses over it will connect to a feed that pulls content from Instagram, Twitter and Facebook, based off of our own accounts as well as anything with the hashtags #Fryday and #EveryDayIsFryDay (curated by me so that there are no negative posts).
Our food truck serves as our moving billboard. It will be loudly branded so that there is no mistake that it is Fry Day when passers-by see it. As such, our branding is very important.
B R ANDING To emphasize the carnival-yet-hipster vibe of our brand, there is a day-and-night sort of theming that is characteristic of how Fry Day is represented. In the day, Fry Day will adopt its signature yellow branding, and at night, this will shift to neon-sign based visuals that still reflect the same yellow tones.
The secondary page will feature a brief mission/vision overview, Fry Day’s backstory, and employee bios.
Our logo, Fry Day, exists on its own and along with the slogan, Every Day is Fry Day, in a wordmark.
A third page, when necessary, will feature all of our business partners, and the events we have conducted with them.
This is accompanied by a circle that signifies an open plate; most promotional images will feature this circle with whatever food we are serving that day arranged on top. These elements will carry through from the truck, to the website, to the packaging, as shown in our brand guide on the next page.
As aforementioned, the website will be run through squarespace, which will cost $26 a month. I estimate at least 20-30 hours of prep work to get the website working, with a minimum of three hours per week in maintenance and updates. As a food truck, word-of-mouth will play a large roll in
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F RY DAY B U S I N E S S P L A N 0 6 . M A R K E TI N G 25
FRYD AY FRY DAY today:
FRY DAY
FRYD AY Y every day is FR Y DA Y
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SU PPORTING STR ATEGY A large part of our promotion is dependent on food truck festivals, especially as these are the best way to earn media attention and a diverse range of customers from the GTA as opposed to just downtown Toronto. I will budget $5000 to applying and participating in up to two of them, preferably the Toronto Food Truck Festival and the CNE Food Truck Frenzy. However, besides day-to-day operations, we have envisioned a world of collaboration that can potentially exist between us, as a food truck, and various stores, galleries, bars, and even some restaurants. We call this our “Innovative Catering’ plan (as outlined in the Research section under Channels of Distribution, pg. ), and as there is no way of telling whether or not it will be fruitful, it is secondary to our main gist as a food truck. This works as a promotion because it aligns us as more than just a street food service that pops up now and then. By making real connections with these businesses, customers will see a dedication to Toronto that sets us apart from the competition. Beyond that, it will truly drive home our adventurous mandate, and appeal to the sophisticated side of our target audience, who choose very carefully which businesses they will invest their money into. The best part is, if the relationships do not happen and nobody wants to take part, it will not cost us anything. If they choose to, then we are journeying forward with a mutual respect for each other, and the rate of losing money from one such event will not be any more risky than running a food truck location-to-location, day-today. Returning to the farmer’s market example, nothing will have changed about our operations even though we
are participating in the event. We are still carrying out our local ingredients purchases, and still selling dishes in a set location. If we succeed, it will be a regular day of revenue; if we fail, it will be a regular day of losses (in the scheme of day-to-day business). The only difference is that by our association with farmer’s markets, customers see that this is a food truck that is embedded in the local culture. The food that it sells is not just deep fried junk, but thoughtfully considered gourmet fare. Even the sight of a food truck parked amongst a farmer’s market will drive people to wonder if it is even legal. All of this will translate to positive media attention, postitive online generation, and a better Toronto that sees it does not need to pit businesses against each other to survive.
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FINANCIAL PLAN Fry Day operates on business-to-consumer transactions. This, namely, is consumers purchasing food and beverages. The main channel of distribution is the food truck, of which 90% of the transactions will occur. 10% is allocated to down payments provided but companies who wish to use Fry Day as a caterer and will inquire and book online through website or mobile phone.
SU PPLIES & COST B RE AKDOWN The overhead cost of operating Fry Day will be similar to most food trucks. Initial truck purchases and preparations, including deep fryer, counter, fridge and generator installations and truck design will come to around $75 000. Initial product inventory will cost around $400 and this includes the dry and wet ingredients for the batters, drinks, and non-perishables. Fresh ingredients are measured on a day-to-day basis. A street vending license will cost $5195.38 upfront, with a renewal fee of $748.93. Additional licenses, including insurance, will run about $2500 a year. Additional costs such as kitchen accessories, custom packaging/cups, utensils, and miscellaneous expenses will cost about $3200. Fry Day’s initial startup costs will run about $81,600, not including monthly costs. Details below. Food Truck (Kijiji or Craigslist, outfitted by Silver Star Metal Fabricating): $70 000 Truck decals: $500 Initial Product Inventory (batters, drinks, non-
perishables; supplied in bulk through Costco): $400 Licenses (Street Vending LIcense, Mobile Permits, Insurance, Public Health Inspection Check): $7695.38 Custom-designed packaging (including plates, napkins and cups, supplied in 10000 bulk by Goldrich Printpak Inc.): $1500 Kitchen accessories (pots & pans, fire extinguisher, supplied through Costco or other wholesalers): $1200 Miscellaneous (menu boards, emergencies): $500 Monthly website and POS costs will be $75. Internet plans will run about $100 a month, and fuel will cost about $600 a month. Daily food stocking will vary depending on location, but a safe estimate is $50-100 a day. Employee payroll will run about $4500 a month. Fresh ingredients will be supplied through local retailers, specific to location. It is impossible to buy bulk for daily ingredients due to lack of storage space, so having a nearby grocery store at Fry Day’s disposal allows for easy topping up of supplies. As a result, there will be less of a chance that too much of one ingredient is purchased. Total monthly expenses will be at around $6775. Business collaborations, if they are successful, and trade shows, food truck festivals, and other events will be budgeted in at about $5000 a year, but this varies greatly on opportunity and the strategies that are worked out. This puts the total cost at roughly $88 375.
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$6775 is added monthly to this, with yearly licenses adding another $3248.83 and events adding up to $5000 in additional costs.
PRICING STR ATEGY Fry Day will be priced equally to competition, mainly because the food truck industry is supportive of each other and competitors are more of an objective goal rather than somebody to outdo or destroy. Furthermore, enough data exists that show revenue for most food trucks that follow a similar pricing range (4.3% profit margin in 2015, according to the Global News Article).
Winter, in particular, is a difficult time to operate, with many of our competitors opting to close down. However, it is not impossible, it just requires more strategic locations that are pedestrian-heavy yearround. Additionally, it will mean purchasing more food from large supermarkets, where their selection is less seasonal. What this means, essentially, is that our service throughout the winter must be more planned and less “spontaneous� (in terms of locations, menu choices, etc.), and this is where, if our business-to-business partnerships (as outlined in the marketing plan) are successful, we will be open to more options.
FINANCING
As such, Fry Day will first adopt a Maximize Quantity strategy, to offset long term costs. This means that product inventory, especially the daily fresh ingredients, cannot feature the obscure locations in the first few months of running, and dishes may have to resolve to reinterpreting cheaper ingredients in unique ways (at least until revenue starts boosting the business).
I will need to borrow money to begin Fry Day, through multiple sources. My family has agreed to venture on into the darkness with my team and I, and will lend me $30000 in startup fees, considering that I pay for my own living expenses (as if I were renting out of our home). This works out to around $1000 a month.
Portion sizes will be sold at the industry average, with a regular costing about seven dollars and a large costing about nine. To pursuade customers who do not want to pay such a steep price point for something new, purchasing just the mains without sides will cost a bit cheaper (at around $5.50 and $7.50).
I have $5000 saved up of which I can invest half, so the rest of the money will need to be borrowed. I plan to make a case to BDC through their small businesses loan program, which can provide up to $50000 to eligible businesses. This will provide enough to cover startup fees and a few months of expenses.
For collaborations, if they happen, Fry Day will feature the same pricing model but will introduce specials (family or group bundles, etc.) to encourage more sales. On the other hand, at festivals, products will be streamlined and cut back to drive recognition and account for higher volumes of traffic.
Alternatives to BDC:
Important factors that need to be considered, however, are seasonal issues. People do regularly purchase from food trucks in all seasons, but a rainy day or a particularly snowy day could hamper sales, especially when the window of opportunity is small.
Futurpreneur, who can supply up to $45000. Young Entrepreneurs Program, with student financing of up to $3000 (not enough).
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OPERATIONS DE VE LOPME NT From the city of Toronto’s website, here is a potential list of commercial parking lots Fry Day can vend in within the downtown core (with permission from the parking lot owner): 1-20 Four Seasons Pl, M9B 6H7 1 Eva Rd, M9C 4Z5 3500 Bathurst St, M6A 2C6 491 College St, M6G 1A5 377-379 Spadina Ave, M5T 2G3 227 Queen St W,Rear, M5V 1Z4 124 Pears Ave, M5R 1T2 297 College St, M5T 1S2 231 College St, M5T 1R4 188 Spadina Ave, M5T 3A4 180-184 Spadina Ave, M5T 2C2 189 Spadina Ave, M5T 2C5 306 Front St W, M5V 3B5 400 Front St W, M5V 1B5 352 Front St W, M5V 1B5 30 Niagara St, M5V 2P2 550 Wellington St W, P1-P2, M5V 2V4 473 Adelaide St W, M5V 1T1 501 Adelaide St W, M5V 1T4 443 Wellington St W, M5V 1E7 87 Peter St, M5V 1G9 217 Adelaide St W, M5H 1X4 211 Adelaide St W, M5H 1X4 343 King St W, M5H 1A1 533 King St W, M5V 1K4 543 Richmond St W, M5V 1Y6 444 Richmond St W, M5V 1Y2 78 Spadina Ave, M5V 2J3 114 Peter St, M5V 2G7 229 Richmond St W, M5V 1W2 111 Peter St, M5V 2H1 309 Adelaide St W, #1/2, M5V 1P8 4211 Yonge St, M2P 2A9
219 Dundas St E, M5A 1Z7 254-258 Church St, M5B 1Z2 108 Mutual St, M5B 2B2 237 Victoria St, M5B 1T8 11 Centre Ave, M5G 2H5 203 Jarvis St, M5B 2C1 87 Mutual St, M5B 2A9 365 Church St, M5B 1Z9 49 Gerrard St W, M5K 2K1 412 Church St, M5B 2A3 67 Shuter St, M5B 2H8 512-516 Church St, M4Y 2C8 114 Church St, M5C 2G5 94 The Esplanade, M5E 1A9 60 Church St, M5C 2G1 38-54 Church St, M5E 1M4 65 King St E, M5C 1G3 60 Shuter St, M5B 1A8 12 Lombard St, M5C 1M1 This is just a sample of public lots that we can vend in, should curbsides be unavailable. Licences required: Business Licence. Motorized Refreshment Vehicle Licence. Mobile Food Vending Permit. Driver’s Licence.
LOCATIONS Fry Day will launch in three high-profile locations before branching out to all of the smaller, more unique neighbourhoods in Toronto. We are not sure which locations these are going to be yet, but there are several criteria that are important to selecting where http://goo.gl/CW6uwd
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we will initially operate. Firstly, Toronto bylaws, as mentioned exhaustively in this document, are our primary concern. Once again to reiterate: Food Trucks can operate on public roads, private property, in commercial and Green P parking lots. They can operate on private property and in parking lots with the permission of the property owner and in accordance with the commercial zoning bylaw. All pay-and-display stations on major, minor arterial and collector roads are open for operation as long as they abide by all relevant parking regulations, and pay for parking. For curbside vending, however, food trucks must not be within 30 linear metres of a restaurant. For special events, food trucks only require a business license, as the event organizer should have prepared Special Occasion permits. Once these are met, we need to choose locations such as University & Dundas (this is a prime spot, where food trucks park on rotation), which feature a high volume of pedestrian traffic, but are situated well away from restaurants. Areas with heavy traffic can also be a bonus, as pedestrians who want avoid the surge of foot and vehicle traffic may wait around in corners. Also, being situated near subway stations or bus stops may be useful. Away from all the bustle, we can target areas where people tend to stroll—harbourfront is a good example of this. While there is significantly less traffic, the people there are going about at more of a leisurely pace, and a food truck would entice them to stop and look. As shown above, the spaces for parking lots are definitely going to be utilised, as long as they fulfill
the pedestrian requirement we are looking for. This to ensure that we do not end up in an empty parking lot far away from the rest of the city.
FACILITIES , EQUIPME NT & SU PPLIE RS FOOD TRUCK Kijiji or Craigslist Retrofitting (includes deep fryer station, refrigeration and storage, counter space, power generators): Silver Star Metal Fabricating Decals & Printing: Upper Canada Signs & Graphics (I know the owners, so I can get discounts) INITIAL PRODUCT INVENTORY (dry and wet ingredients, drinks, non-perishables: Costco Wholesale PACKAGING (custom food holders, napkins, cutlery): Goldrich Printpak Inc. (10000 ct) KITCHEN ACCESSORIES (pots and pans, spatulas, serving equipment): Costco Wholesale, Wal-Mart, etc. FIRE EXTINGUISHER Uline.ca MISCELLANEOUS (menu boards, chalk, pens and paper, etc.): Staples, Grand & Toy (wherever it is cheapest and/or on sale). WEBSITE Squarespace POINT-OF-SALE Shopkeep (using converted iPad)
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LTE UNLIMITED DATA PLAN Rogers, Bell, Fido, or Koodo (whoever I can bargain with for the best deal) FUEL Shell, Petro-Canada, etc. (changes in terms of price and location that we are in) FRESH FOOD No Frills, Wal-Mart, Costco (changes depending on location being served and proximity of supermarkets) LOCAL FRESH FOOD changes depending on location (Example: If we are near Kensington market means we will feature their local produce)
L ABOU R REQUIRE ME NTS Founder Me. Web Designer Me. Social Media Relations Me + Employee 1 + Employee 2 Line Cook Employee 1 / Employee 2 Driver Employee 2 Cashier Me + Employee 1 We will share responsibilities when it comes to preparing menus, choosing work outfits, engaging in social media and choosing locations.
The 2015 Trends Impacting the Food Industry By Lu Ann Williams, Director of Innovation at Innova Market Insights Innova Market Insights recently identified its top 10 trends likely to impact the food industry in 2015 and beyond, identified by the company’s ongoing analysis of key global developments in food and drink launch activity worldwide. In previous years, Innova has consistently predicted upcoming trends, including “Sustainability” in 2008, “Free-From Rises” in 2010, “Return to Softer Claims” in 2011, and “Location, Location, Location” in 2012, all of which have developed further and continue to have a significant effect on the industry today. This year, the company is predicting the rise of the clear label. “The move from ‘clean’ to ‘clear’ labelling is a key trend for 2015, reflecting a move to clearer and simpler claims and packaging for maximum transparency,” says Lu Ann Williams, Director of Innovation at Innova Market Insights. “Meeting the needs of the Millennial consumer has also become a key focus, as has targeting the demands of the gourmet consumer at home, re-engineering the snacks market for today’s lifestyles and combating obesity with a focus on positive nutrition.” TOP FOOD AND BEVERAGE TRENDS FOR 2015 ARE: From Clean to Clear Label Clean label claims are tracked on nearly a quarter of all food and beverage launches, with manufacturers increasingly highlighting the naturalness and origin of their products. With growing concerns over the lack of a definition of “natural,” however, there is a need for more clarity and specific details. Consumers, retailers, industry and regulators are all driving more transparency in labelling. Convenience for Foodies Continued interest in home cooking has been driven by cooking shows on TV and by blogging foodies. It is seen as fashionable, fun and social, as well as healthy and cost-effective. It has driven demand for a greater choice of fresh foods, ingredients for cooking from scratch and a wider use of recipe suggestions by manufacturers and retailers. Soy is just one source of protein experiencing growth as producers and consumers look to new sources. Marketing to Millennials The so-called Millennial generation, generally aged between 15 and 35, now accounts for about one-third of the global population and is tech-savvy and socially engaged. They are well informed, want to try something different and are generally less brand loyal than older consumers. They want to connect with products and brands and know the story behind them. Snacks Rise to the Occasion Formal mealtimes are continuing to decline in popularity and growing numbers of foods and drinks are now considered to be snacks. Quick healthy foods are tending to replace traditional meal occasions and more snacks are targeted at specific moments of consumption, with different demand influences at different times of day. Good Fats, Good Carbs
With concerns over obesity there is a growing emphasis on unsaturated and natural fats and oils that has seen rising interest in Omega-3 fatty acid content as well as the return of butter to favour as a natural, tasty alternative to artificial margarines that may be high in trans fats. In the same way, naturally occurring sugar is being favoured at the expense of added sugars and artificial sweeteners. MORE IN STORE FOR PROTEIN Ingredient suppliers, food producers and consumers are on the lookout for the next protein source. Soy protein is regarded as cheap and mainstream and therefore being less applied among NPLs tracked. Whey protein has been popular for some years and is still growing, while pulse protein is rapidly emerging. More algae protein applications are expected in the future. Further along, insect protein may become big in various categories. Damhert Nutrition recently launched the Insecta range to Belgian supermarkets; a line of burgers, schnitzels and nuggets, all created using Dutch-bred buffalo worms. The buffalo worms reared specifically for human consumption are applied as an alternative high protein, meat substitute. NEW ROUTES FOR FRUIT More product launches are being tracked with real fruit and vegetables, as they can function as colouring foodstuffs and in that role meet the increased demand for natural colours and flavours. Fruit and vegetable inclusions can add to the “permissible indulgence” character of a product. Consumers perceive a product to be healthier when it contains a real fruit or vegetable ingredient. Recent launches include Food For Health Kids Little Bites Choco Banana (Australia), which is “made with real fruit.” A FRESH LOOK AT FROZEN In order to compete with the healthy appeal of fresh aisles and the convenience of canned foods, established frozen foods (vegetables and seafood) are focusing on freshness in their marketing, stressing the superior nutritional content in frozen food. Brand extensions include larger varieties in vegetables and fruits. At the same time, the frozen segment is witnessing new product launch activity in new categories (e.g. soups, fruit, drinks, finger foods, sauces, pastries, herbs). Findus now offers a line of frozen Mediterranean Spices that offer high convenience and fresh qualities. PRIVATE LABEL POWERS ON Even though the worst of the economic recession is over, private label is still gaining market share in terms of new product launches in Europe, North America and Australasia. Store brands are here to stay and are found in all product segments. Discounters Aldi and Lidl are by consumers no longer solely seen as budget stores, but are accepted by the general public and considered to have good quality products. Recent innovations from retailers include M&S Summer of Flavour Cream Cheese With Wasabi. RICH, CHEWY & CRUNCH Texture is an important driver for taste perception of food and beverages and focus of many of today’s food innovations. Brands are creatively combining textures with for example crispy inclusions, soft centres and extra crunchy toppings. Texture claims are shown more prominently on front-of-pack. Also, brands are creative in describing texture or including a texture claim in a product name. Recent innovations include Quaker Big Chewy Chocolate Chip bars.
Canadian Food Insights Article. The 2015 Trends Impacting the Food Industry. Lu Ann Williams, Director of Innovation at Innova Marketing Insights. http://canadianfoodinsights.com/2014/12/17/2015-trends-impacting-food-industry/
Global News Article: Vancouver, Edmonton two of biggest players in Canada’s food truck scene. Patricia Kozicka. http://globalnews.ca/news/2077063/vancouver-edmonton-two-of-biggest-players-in-canadas-foodtruck-scene/
Why Canadians Prefer Independent Restaurants Adrian Brijbassi,Columnist, Vacay.ca When we decided to open the voting up to the public for the Vacay.ca Top 50 Restaurants in Canada Guide I was afraid of two things: 1. We would receive so many votes that we would be up for days and nights counting and recounting them all, and 2. The voting would be hijacked by a giant corporation and, living by the rules of our own creation, we would be bound to list among the best restaurants in the country an establishment that had strength in numbers and dollars but not in passion for its product. One of those fears did come true, but it’s the one we would prefer to contend with. Canadians have proven to be enthusiastic and inspired supporters of their favourite eateries, evidenced by the thousands of votes Vacay.ca received as it asked the nation to participate in naming the country’s best restaurants. But the most interesting outcome of the public balloting may be who did not receive any votes at all. There was not one email or Twitter message sent to us commending a franchise of a corporate restaurant chain. Oliver & Bonacini, the Toronto-based owner of such restaurants as Canoe and Auberge du Pommier, was the only major corporate enterprise to receive public support. No Keg or Milestone’s or McDonald’s or Wendy’s. That’s not to say burger joints, pizzerias and pubs didn’t compel patrons to send in votes. Una Pizza & Wine in Calgary, Cheese Curds Gourmet Burgers and Poutiniere in Dartmouth, Nova Scotia, and Toronto’s Burger’s Priest were among the casual, lowpriced eateries whose fans notified Vacay.ca that they were deserving of a place among the Top 50. We will soon know whether those restaurants make it; runner-up establishments will be named daily beginning on April 25, leading to the announcement of the Top 50 on May 1. With the votes now counted and the most definitive survey of the nation’s restaurant scene about to be revealed, the results will impact where we dine. More than 60 per cent of Canadians eat out once a week, according to a 2012 report by Visa Canada. The Canadian Restaurant and Foodservices Association (CRFA) reports that 40.2 per cent of citizens rank going to a restaurant as their preferred activity to enjoy with friends. In a $60 billion industry, learning which restaurants connect with individuals is crucial for improving the product offered, as well as helping Canadians to decide where they should spend their money. Here’s what I think the public voting outcome means about Canadians’ tastes. Restaurants run by small-business owners engender much more loyalty than corporate franchises that spend big dollars on advertising and prepare menus targeted at the mass market. Many of those small-business owners are leading a local food movement that is changing the way we consume meals. There’s more concern for nutrition, food safety and organic produce than ever, and we are only at the beginning of this movement. In years to come, large corporate restaurants that continue to buy in quantity rather than opting to support local farmers and food suppliers will lose market share to chefs who prepare better quality food with better quality products and charge approximately the same price. Most importantly, the food is superior -- often far superior -- and more innovative at restaurants where the chef is also among the ownership group. That chef is often the face of the enterprise and will be keen to the fact his or her reputation is at stake with every diner who pulls up a chair. Independent restaurants are going to care for your satisfaction and that personal attention has resonated in the Vacay.ca survey. Feeling as if you are visiting someone’s home when you dine out is a theme that has come across in the voting, no matter the price point. Restaurants from New Brunswick’s Saint John Ale House, where most meals can be purchased for less than $20, to Ruby Watchco in Toronto ($49 for a three-course meal) to Atelier in Ottawa ($110 for 12 courses) all drew praise for the homeyness of their atmosphere. While these restaurants put a premium on service and top-quality dining
experiences, corporate enterprises such as East Side Mario’s and Casey’s (both owned by Prime Restaurants Inc.) have focused the last two years on expanding into larger and less intimate spaces to “maximize revenues” and increasing their television advertising spend by “four-fold.” Service is also more elegant and gracious at independent restaurants because passionate chefs and restaurateurs are more likely to instill a sense of pride in their staff. The best of them also recruit service-industry professionals they admire. Likewise, servers and bartenders are more concerned about their jobs if they are working for their relatives or friends, as tends to be the case at independent eateries. The same is true of the kitchen staff, and isn’t that the most important thing you want to know when you dine out? That the people preparing your food are vested in your satisfaction of it? To me, what the Vacay.ca voting shows is Canadians who still choose to dine at large corporate chain restaurants must only do so because they want the security of knowing what they’re getting for their money. That sense of familiarity comes through advertising and the corporate chains’ fortune to afford a nationwide presence. Aside from a handful of famous restaurants like Vancouver’s Vij’s and Montreal’s Joe Beef, independent restaurants don’t have name recognition across the country or even outside of their neighbourhoods. They have to rely on word of mouth, which in essence is what the Vacay.ca vote was about. There are no luxury restaurant chains in the country, but in the mid-price range ($25 dinner entrees) and lower, corporate restaurants and independent restaurants are in fierce competition. Thing is, corporate restaurants can’t compete on quality, service, hospitality or nutritional value. Yet, they still out-compete small-business owners in profit and revenue (Prime Restaurants earns about $7 million a year). The reason why comes down to the answer to one question: Where should we go to eat? It’s pondered 17 million times a day in this country: That’s how many visits Canadians make to restaurants, according to the CRFA. If you’ve heard of a place, you’re more likely to give it your business -- even if it’s mediocre quality and a poor value choice for your money.
Huffington Post Article: Why Canadians Prefer Independent Restaurants. Adrian Brijbassi. http://www.huffingtonpost.ca/adrian-brijbassi/best-restaurants-in-canada_b_3179746.html
The Rise of Culinary Tourism
SKIFT REPORT 2015
About us We believe the best way to experience culture is through food. Food serves to connect us with the land, our heritage, and the people around us. It is a diverse and dynamic channel for sharing stories, forming relationships and building communities. By combining local food and drink with travel, food tourism offers both locals and tourists alike an authentic taste of place while contributing to a sustainable world economy.
Culinary Tourism
We are actively contributing to Ontario’s edible history by creating fruitful relationships in communities across the province - from the farm up. Though our roots are firmly planted in Ontario soil, our branches reach beyond borders, minimizing the distance between field and fork across the globe. By bridging the gap between the food & travel industries, we are strengthening viticulture, agriculture and aquaculture to promote the growth of food tourism. Our work lies in developing strong relationships between growers, chefs, processors, restauranteurs, accommodation providers, distributors, government and industry organizations. The Ontario Culinary Tourism Alliance is leading efforts in research, education, and product development to promote the growth of the tourism industry. We believe discovery is a medium for growth, and inspires change. Whether you’re a local or a tourist, edible experiences will change the way you think about your food, beyond the plate. We believe in local. We believe in authentic. We believe commitment and collaboration are the best avenues to success in this industry. Together, these fundamentals reinforce the economic, environmental and social health of our communities, globally. Contact us to find how you and your business can take advantage of culinary tourism, globally.
3
The Rise of Culinary Tourism
SKIFT REPORT 2015
How to Capture the Attention of Food Tourists OCTA organizes food tourists into three
Likewise, the 2006 Travel Activities & Moti-
categories: People who deliberately plan
vations Survey commissioned by Statistics
their trips around food; those who incorpo-
Canada revealed a higher interest in cultural,
rate a food experience into their itinerary
outdoor and historical activities by food
without it being the primary motivator; and
tourists when compared to their generic
those who decide where to dine on the fly.
tourist counterparts. This suggests that a food tourist is also a cultural tourist, and
Likewise, the United Nations World Tourism
vice versa – making their potential economic
Organization’s (UNWTO) 2012 “Global Report
impact even greater for the destination they
on Food Tourism” identifies culinary-conscious
choose to visit.
tourists by the following behaviors: 1. they are concerned about the origin of
In a market study conducted by Brand USA
products
for the countries, Australia, Canada, Brazil,
2. use dining as a means of socializing and
China, France, Germany, Japan, Korea and
exchanging experiences with others
the United Kingdom, results proved that
3. have a higher-than-average spend on trips
food and dining played a big factor in the
4. a high degree of loyalty
tourist’s travel experience.13
5. revisit destinations due to gastronomy.
IMPORTANCE OF DINING AND CUISINE BY MARKET % RANKING IT AS A % NOTING IT’S AN “IM“MOST IMPORTANT PORTANT DESTINATION TRAVEL EXPERIENCE” CHARACTERISTIC”
In the UNWTO study, 88% of respondents Australia Brazil Canada China France Germany Japan Korea UK
indicated that culinary offerings were an important component for defining a destination’s brand and image.11 Understanding these consumer psychographics and spending behaviors is important for DMO’s, because as mentioned in the
39% 42% 31% 55% 38% 30%* 42% 25% 34%
57% NA 55% 84% 44% 47% 55% 55% 59%
% SPENT ENJOYING WINE & FOOD ON LAST TRIP TO USA
NA 52% 40% 66% 38% 35% 61% 55% 41%
* 67% note cuisine important if part of “local culture.”
WFTA and UNWTO reports, travelers who
Source: http://www.milespartnership.com/blog/will-travel-for-food-culinary-tourism
report culinary-themed travel experiences
The growing interest in experiencing local
as a driving factor in trip planning exceed the
food activities also aligns with the burgeon-
average spend not just on fine and casual din-
ing sharing economy. Travelers are looking
ing, but also lodging, entertainment, shop-
to their peers for recommendations about
ping, and other general travel experiences.
specific local experiences, especially those themed around F&B, or they’re engaging
A study of culinary tourists in the Ex-
with locals through a wave of new sharing
tremadura region of Spain, published in Wine
apps and websites. For example, the startup
Economics & Policy, established a strong
EatWith connects local hosts and travelers
link between interest in culinary activities
to enjoy a homemade dinner.14
and interest in exploring a region’s cultural tourism attractions. A survey of 303 visi-
Airbnb, meanwhile, recognizes exceptional
tors during the spring of 2012 found that
hosts with its SuperHost program. Providing
food tourism has great potential as both a
guests with a map or guide to local restaurants
tourism product differentiator and a tool
and farmers’ markets is one of the most com-
for marketing the unique aspects of tourist
mon expectations required of a SuperHost.
destinations in general.12 11
Gourmet food trucks are a growing enterprise. Over the past four years, these upscale meals on wheels have motored into major cities from San Francisco to Miami. The National Restaurant Association says these mobile eateries generate about $650 million in revenue – about 1 percent of total U.S. restaurant sales. A higher quality alternative to traditional fast-food restaurants, gourmet food trucks often serve organic, locally grown and off-the–beaten-path fare. Tapping into a host of powerful consumer trends, from a desire for local products to an interest in unusual products, these rolling restaurants offer a more affordable route to business ownership for entrepreneurs experimenting with expansion or unable to find financing for a brick-and-mortar establishment. Emergent Research expects food trucks to generate between 3 and 4 percent of total restaurant revenue – about $2.7 billion – by 2017, a fourfold increase from 2012. In other words, food trucks are not a fad but a viable market segment with significant competitive advantages over quick-serve, fast-food and take-out food vendors. $2.7 Billion
To delve deeper into the trend, Emergent Research recently interviewed a cross section of food truck operators and their customers. This included: ■ 272 customers in person at food truck sites in San Francisco, including 168 lunch customers and 104 dinner customers. ■ 27 food truck owners or managers in person, by email or by phone. FOOD TRUCKS MOTOR INTO THE MAINSTREAM
U.S. FOOD TRUCK REVENUE $650 Million
2012
2017
(ESTIMATED)
SOURCES: National Restaurant Association, Emergent Research
1
RECIPE FOR SUCCESS: COMBINE GOURMET FOOD WITH UNIQUE EXPERIENCE Unlike the stereotypical roach coaches with horns that blared “La Cucaracha” during company lunch hours, today’s gourmet food trucks offer high-quality cuisine.
“Over 90 percent of survey
Customers can find a rich selection of upscale fare
respondents rate
from fusion foods, such as Korean bratwurst and Native
food truck food
American fry bread fusion pizza to lobster corndogs and crème brûlée. More than 90 percent of lunchtime survey respondents rated food truck quality as either excellent (43 percent) or good (48 percent). About 50 percent
quality as either excellent (43%) or good (48%).”
characterized dinner cuisine as excellent. Patrons shared this enthusiasm while feeling that food trucks provide good – but not great – value. In fact, food truck cuisine isn’t cheap. Customers spend an average of $9.80 at lunch and $14.99 at dinner per person. Only 8 percent of lunch patrons spend less than $8, while 45 percent of dinner patrons spend less than $10. Still, some 50 percent of lunch and dinner diners feel that the value is excellent or good. More than two-thirds view the cuisine as a treat or an opportunity to try something new or fun. Reflecting that view, most customers don’t frequently visit food trucks. Only 27 percent of lunch customers said they ate at food trucks more than once a week. Meanwhile, 32 percent said they go once a week and 41 percent said they go less than once a week. Dinnertime diners are even less frequent: 70 percent of those surveyed said they eat dinner at food trucks only once a month or less.
Intuit Food Trucks Report: Food Trucks Motor into the Mainstream. FOOD TRUCKS MOTOR INTO THE MAINSTREAM
http://network.intuit.com/wp-content/uploads/2012/12/Intuit-Food-Trucks-Report.pdf
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Trends in sustainable food trucks By Janine Windsor Food trucks, as they exist now, are a relatively new face on the food service block. Gone are the days of simple sandwich trucks that only visit labour worksites. The food trucks of today are hip and trendy, serving up everything from comfort food to gourmet items and desserts. They are also well connected to their customers with the help of social media. Perhaps it’s that connection that keeps some truck operators on the cutting edge when it comes to what their customers want to eat, and experience. ... Fortunately, many dedicated mobile restaurateurs are committed to running a sustainable business, accepting the challenges of doing so from a food truck. In order to achieve a sustainable food truck, focus must be placed on the worst offenders first: waste and energy. Although there is no space for washing reusable dishware, food trucks can be creative in reducing takeout waste. `Offering locally filtered water to customers that bring their own bottles avoids the sale of bottled water, and offering discount incentives to customers who bring their own utensils and containers can have a dramatic impact. The waste that is created can be diverted from the landfill with composting and recycling bins along with adequate signage to encourage customers to compost and recycle wherever they take their meal. Luckily, it’s not all about overcoming challenges: there are also environmental advantages of running a food truck. A small space means a small kitchen and less energy-intensive equipment. Equipment is unlikely to be left on beyond the time it’s needed, and minimal storage space means water efficiency and saving is of primary importance. The trucks are also typically only in use during peak hours. If a truck is able to utilize alternative or renewable fuel sources, the carbon footprint can be greatly reduced. Biodiesel provides a great alternative to fossil fuels for getting around town. Unfortunately, not all cities have reliable suppliers. If a biodiesel facility is available, used oil can be recycled into the truck’s own fuel. Solar power is another option that some trucks are using to harness natural energy for their operations. In the kitchen, wood ovens are appearing on trucks, further decreasing the reliance on generators. SmartKarts, a zero-emissions, plug-in truck, is the method of transport for some U.S. food trucks. Nevertheless, the environmental inadequacies of food trucks that do exist can potentially be offset by targeting other areas, and food trucks offer a unique opportunity for innovation. Local and organic food sourcing is an important aspect of any restaurant’s sustainability status. The Naaco Truck embraces hyper local, and the owners have installed a rooftop garden that provides fresh herbs for their flavourful dishes. The Purple Pastry Chef, a baked goods truck in Calgary, doesn’t have a garden on its roof but grows organic fruits and flowers for its treats at a home garden. Cheezy Bizness keeps plastic waste down by not offering straws, and choosing the simplest and 100 per cent recycled wrappers for their grilled sandwiches. All three of the aforementioned mobile eateries have been able to steer clear of plastic utensils by creating menu items that don’t require them. Failing this, compostable utensils made from renewable or recycled materials are a great improvement over plastic. If a food truck operator keeps the above principles in mind, and searches for ways to be innovative within their own unique business model, sustainability can be added to the menu with confidence.
Restaurant Central Article: Trends in sustainable food trucks. Janine Windsor. http://www.restaurantcentral.ca/sustainablefoodtrucks.aspx
Sales of food truck permits fall flat By Shawn Jeffords TORONTO - Randy Kangal pulled his jet-black food truck, with bright red flame decals on the side, into the parking lot of the East York Civic Centre just before 4 a.m. Thursday. He intended to beat the crowd to get one of only 125 food truck permits issued by the city. As it turned out, the owner of Randy’s Curb Side roti truck could have slept in. Kangal was one of only six people to pay for the permit by mid-afternoon Thursday. And at $5,000, he said it was expensive, and restrictive, but he’s just thankful for the chance to hit the streets. “We’re happy,” he said from behind the wheel of his truck. “At least they’re giving us the opportunity. It’s something that wasn’t there before.” City Council voted in early April to change regulations to allow trucks to use pay-and-display parking spots which are at least 50 metres away from an existing restaurant. Council also imposed a two-truck-per-block limit and three-hour time limit for any onstreet location. Kangal said they have a few spots picked out and plan to be on University Ave. Friday. “We’re really going to work these spots and comply with the bylaw,” he said. “Hopefully, everything works out for us.” Bryan Siu-Chong, co-owner of MeNu Food Truck, which serves Asian fusion cuisine, was second in line. He hopes this is the first step to creating a vibrant food truck scene in Toronto. “It’s very expensive compared to other cities,” he said of the permit. “Hamilton is about $1,000. But it’s the Toronto market and it’s just the starting point before it blows up.” But Zane Caplansky, owner of Caplansky’s Deli and a food truck operator, said he won’t be buying a license. It just doesn’t make business sense. “The problem is there is literally nowhere for food trucks to locate in the downtown core,” he said. “They want us to pay $5,000 but there is nowhere to park.” The city currently has 77 food trucks which hold regular permits which now allow them to operate on private property or in parking lots under the new rules. They can ignore the restrictions placed on their on-street competitors. City spokesperson Tammy Robbinson said staff must report back to council next year on how the new regulatory regime is working. City staff were prepared for a rush on the licenses Thursday, with extended hours at East York Civic Centre and a special line for applicants. “Our best guess would be if they’re not coming to get the mobile permit, they’re going to do the parking lot,” Robbinson said of the tepid sales. “That would be our best guess. We have sold some though.”
Toronto Sun Article: Sales of Food Truck Permits Fall Flat. Shawn Jeffords. http://www.torontosun.com/2014/05/15/vendors-to-snap-up-food-truck-permits
Full stop on the revolution: Why Toronto’s food truck scene keeps falling 50 metres short By Ann Hui Food lovers had visions of a utopia on wheels after Toronto loosened notoriously restrictive food truck laws. One year later, Ann Hui finds the dream still falls short – by exactly 50 metres. When you step inside Bryan Siu-Chong and Allen Tan’s “Me.n.u” food truck on University Avenue, this is what you’ll see: a refrigerator stocked with garnishes for their “Asian fusion” dishes – dishes such as kimchi pulled pork poutine and satay chicken roti; a counter covered with plastic squeeze bottles of Korean barbecue sauce; and a giant speaker from which they blasted loud hip hop one recent afternoon – to attract a growing lineup outside, and to bob their heads to as they prepped. But tucked beneath the dashboard is something unexpected. That’s where they keep a yellow “Meter-Man,” a measuring tool normally used by engineers and surveyors on building projects. But Mr. Tan and Mr. Siu-Chong have a different purpose for it: They keep it to stay on the right side of city laws. According to food-truck owners, the tool which the pair use to abide by one of the city’s long list of rules – represents the worst of what they describe as a rat’s nest of bureaucracy. A ban on operating within 50 metres of a restaurant, the owners say, is the millstone keeping them down. It’s also key to answering the question asked by Mr. Siu-Chong that afternoon in his truck: “There’s street food everywhere,” he said, pointing to the hawker stalls in Asia, and the booming food-truck scenes of Los Angeles, Portland, Ore., and even Hamilton. “Why shouldn’t Toronto have it?” One year ago, Toronto city council passed a slew of reforms to allow, for the first time, roaming food trucks. After the disastrous “A La Carte” program – which saw vendors mired in excessive and expensive red tape – the decision was seen as a reset for the city’s rocky relationship with street food. The decision inspired hopes for a revolution. It never came. And, depending on an upcoming decision at city council, it may never happen. “It started off as a revolution. It ended with a whimper,” said Councillor Glenn De Baeremaeker. After the city passed new rules last year, Mr. Siu-Chong and Mr. Tan lined up to purchase the new $5,000 curbside vending permit. They soon realized they were one of the few – the majority of truck owners decided the rules were still too restrictive. Only 17 of 195 street-food vendors have since bought a permit. On a recent sunny Thursday, only two trucks were operating in the entire city. By comparison, there were 36 trucks operating that same day in Vancouver and 22 in Boston. Even sleepy Ottawa had nine. What’s separating Toronto from an exploding street-food scene, truck owners say, is exactly 50 metres. The city’s licensing committee is set to review its food-truck policy next week, and staff are recommending loosening some of last year’s restrictions – but leaving in place the 50-metre rule, which restaurant owners say is needed to protect them from loss of business. ...
The Globe & Mail Article: Full stop on the revolution: Why Toronto’s food truck scene keeps falling 50 metres short. Ann Hui. http://www.theglobeandmail.com/news/toronto/full-stop-on-the-revolution-why-torontos-food-truckscene-keeps-falling-50-metres-short/article24014861/
Statistics Canada 2011 Population Survey
Toronto Employment Survey 2014 The Institutional sector grew the most over 2014 adding 250 jobs and growing by 17.1%. Both the Manufacturing and Service sectors saw very modest employment gains of 10 jobs each. All other sectors lost employment, totalling 780 jobs lost from the Retail, Office and Other sectors combined with the Office sector losing the greatest number of jobs (530 or 1.8%).
Figure 15: Net Change in Centres Employment 2009-2014 7,000 6,000 5,000
Jobs
4,000 3,000 2,000 1,000
Etobicoke Centre
Yonge-Eglinton
0 -1,000
North York Centre
Yonge-Eglinton
Scarborough Centre
Location
Figure 16: Total Employment in Downtown and Centres by Six Sectors, 2009-2014
600,000 500,000
Jobs
400,000 300,000 200,000 100,000 0 2009
2010
2011
2012
2013
2014
Year Manufacturing
Retail
North York Centre
Service
Office
Institutional
Other
North York Centre is Toronto's largest Centre and is home to 34,830 jobs, representing 2.5% of jobs in the City. Over the last five years, the Centre has grown by 180 jobs and has consistently lost employment since 2010 with 520 jobs lost this past year. The Office sector is by far the predominant sector in North York Centre, representing 82.3% of employment, totalling 28,680 jobs. Over 2014, the Office sector shrank by 1.8%, losing 530 jobs and declining for the fourth consecutive year. Over the last five years however, the Office sector has declined by just 0.3%, losing 90 jobs.
12 – Toronto City Planning – AUGUST 2015
Yonge-Eglinton Centre is the second largest Centre in Toronto. The Centre contains 19,010 jobs representing 1.4% of employment in the City. Employment in this Centre declined for the first time in five years, down 750 jobs or 3.8% over 2014. However, over the last five years, Yonge-Eglinton has grown by 22.3%, adding 3,470 to the Centre. Employment in the Yonge-Eglinton Centre is overwhelmingly Officerelated, with nearly 8 out of every 10 jobs in this sector (79.9%). Over the last five years, the Office sector has increased in size, growing an impressive 29.8% over five years but declining by 4.6% in the last year. Only the Service and Other sectors achieved employment growth in the last year, with all other sectors showing modest losses since 2013.