Find below stats for the Restaurant business as per

Canadian Restaurant and Food Service Association

(CRFA)
Facts This industry generates $ 68 billion annually which is equivalent to 4% of
Canadas economic activity
The restaurant industry directly employs more than 1.1 million people, or 6.4% of
the Canada's workforce - making it the country's fourth-largest employer. this
would be relevant to our project since this may be the first job for most of the P/N
employees
Canada's restaurants employ young people under the age of 25 - that's one in five
youth jobs. once again an important stat for our project since the Pub will be
hiring young students
Twenty-two per cent of Canadians got their career start in a restaurant or
foodservice business. This is an important stat for the College and could be a
critical factor for students to work at this Lounge.
Latest Restaurant Survey Q4 2013

Nearly four in 10 restaurant operators reported lower same-store sales in Q4
2013 compared to a year earlier. This is likely due to bad winter weather in
December and a perceived weak economy. - we are aware that sales at this
Pub/Lounge will be seasonal. Factors relevant in our case will be class/term
schedules and number of students enrolled for programs at GB.

One-third of respondents reported higher same-store sales in Q4 compared to
40% in Q3. While 44% of quick-service restaurants reported higher same-store
sales, only 28% of full-service restaurant operators posted an increase. Since our
Lounge would be categorized as a quick service restaurant we can anticipate
growth as per the above stats.

For the first time since Q4 2011, the share of operators that expect sales to
decelerate over the next six months surpassed the number expecting sales to
accelerate. This is despite the general consensus that economic activity is forecast
to improve in 2014 compared to 2013.

Despite an increase in pessimism, the results in Q4 are not statistically different
from the Restaurant Outlook Survey results in Q4 2012 and likely reflect
seasonality once again the stats re-confirm this is steady business in terms of
growth and revenue.


Food Costs and Menu Prices

The share of operators reporting higher average food costs rose for the third
consecutive quarter to 63% in Q4. This is the highest level in more than a year. -
our low food cost will attract more students as other competitors witness an
increase in cost of food.

The average operator reported a 2.7% increase in food costs on a year-over-year
basis in Q4 up from 2.6% in Q3. Operators identified higher prices for meat and
vegetables as the biggest factors causing food prices to climb in Q4. As long as GB
has a good control over their cost of supplies and given their aggressive pricing
should all result in this lounge being a profitable venture for GB

Two-thirds of quick-service operators and 62% of full-service operators reported
higher average food costs in Q4 - As discussed above high cost being incurred by
competitors should result in greater sales for GB

The share of operators that plan to raise their menu prices over the next six
months jumped from 33% in Q3 to 44% in Q4 due to rising costs.

A majority, 54% of respondents, expect to keep their menu prices about the same
over the next six months. Nevertheless, this is figure is down sharply from 66% in
Q3. - If competitors do not raise prices with increase in cost of produce, will result
in reduction of GM in long run and may even lead to a few going under in the next
few years.again a benefit for GM

During the winter months, demand for labour tends to be softer than peak
summer months. As a result, the share of operators having difficulties finding
skilled labour fell from 36% in Q3 to 26% in Q4. The share of operators struggling
to find unskilled labour fell from 28% in Q3 to just 13% in Q4. GB can rely on
their students to help them operate this Lounge. Also the students enrolled for the
hospitality business could provide GM the right skills needed to run this operation.

Despite the overall decline in Q4, 32% of table-service restaurants reported a
shortage of skilled labour compared to 13% of quick-service restaurant operators.
- in our case GB should have a surplus of skilled labor enrolled for similar
programs at the college

Sales taxes were an issue for 23% of respondents while gasoline prices were an
issue for 22%. - not sure how will this impact our project

Liquor costs had a negative impact on 22% of table-service operators and 26% for
all other foodservice. - not sure how will this impact our project

Factors Impacting Business

For the first time since CRFA began the Restaurant Outlook Survey, labour costs
are the number one issue affecting operators for the industry overall. This is due
to fewer operators saying food costs had a negative impact on their business in
Q4. The share of respondents identifying labour costs as an issue was the same in
Q3 and Q4. - labour cost the biggest challenge in this industry but has been
addressed in the previous section

By category, labour costs are the biggest issue for all other foodservice (58%); the
second-biggest issue for quick-service restaurants (44%) and the third-biggest
issue for table-service restaurants (57%).

The share of operators saying food costs had a negative impact on their business
fell from 66% in Q3 to 55% in Q4. Nevertheless, food costs remain the number
one issue for table- and quick-service restaurants.

The weak economy had a negative impact on 47% of operators in Q4 compared to
43% in Q3. The share of table-service restaurants concerned about the weak
economy rose sharply from 46% in Q3 to 59% in Q4. - our project to a certain
extent would be less impacted by the economy since our target audience is
students.

Bad winter weather had a negative impact on 61%


During the winter months, demand for labour tends to be softer than peak
summer months. As a result, the share of operators having difficulties finding
skilled labour fell from 36% in Q3 to 26% in Q4. The share of operators struggling
to find unskilled labour fell from 28% in Q3 to just 13% in Q4.

Despite the overall decline in Q4, 32% of table-service restaurants reported a
shortage of skilled labour compared to 13% of quick-service restaurant operators.

Sales taxes were an issue for 23% of respondents while gasoline prices were an
issue for 22%.