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Drew McCarthy From the Editor’s Desk: December 2008

Pizza can ride out the downturn

Written by Drew McCarthy   
For almost four years now, Cam Wood has been the star quarterback of Canadian Pizza magazine’s editorial team. As editor, Cam reached out to every one of you in the industry, telling your stories, reporting your news and advocating on your behalf. I’m sorry to say that Cam has recently left the magazine, moving on to pursue other interests. I’m sure that all of you who got to know him personally, or through the pages of this magazine, will miss his passion, honesty and dedication to the business. I know I will. Many thanks Cam.

Meanwhile, I’ve stepped up to the plate to get this issue into your hands. Some of you will remember me as the guy who ran the magazine before Cam. Although not actively involved over recent years, I have continued to follow the business closely and with interest.

One of the important philosophies that Cam and I share is that this magazine is dedicated to a part of the foodservice industry that has its own unique interests and concerns. Serving a specialized product such as pizza means serving a lot more cheese and tomato products than the rest of the industry; creating and maintaining the pepperoni industry, using more flour than anyone else – except for bakers, and delivering more product more often to the front door than other restaurants would ever dream of.

We share many interests with others in foodservice but we are different enough and important enough to warrant our own magazine. That’s why Canadian Pizza magazine exists, to serve the needs of Canadian pizza operators from coast to coast to coast. Our goal has been, and always will be, to further the good of the pizza business and to help the industry increase its share of the foodservice dollar. That goal has never been more important than right now.

As we approach 2009, the economy is clearly everyone’s number one cause for concern. The situation the auto industry finds itself in could seriously impact Ontario and plummeting oil prices are having a show stopping effect in Alberta and Saskatchewan. The outlook across the remainder of the country is equally troubling. What does this mean for Canada’s pizza makers?

As you might expect, there’s no easy answer. Generally speaking, we can all anticipate a downturn in consumer spending on the foodservice front, but I think that pizza is the one product with the best chance of riding out the downturn. When it comes to value, pizza sits at the top of the list. In spite of rising food costs, most pizza operators have held their prices over the last few years. Operators can now rightfully expect a decrease in food costs because of the decline in fuel prices and those reduced fuel prices may even offset some of the decline in consumer foodservice spending.

Pizza’s high value and desirability should mean that while times will be tough, consumers will still be attracted to the product. At the end of the day, pizza may be one of the most economical indulgences that consumers will allow themselves in times of economic uncertainty. That’s not to say that there will be no impact, but it will likely be less severe than in other segments of the food service and hospitality industry. Canada’s pizza makers should stay focused on what they do best, knowing that they sell one of the most popular products ever created. There’s no substitute for faith, hope and, of course, really hard work. I hope you enjoy this issue.