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April 03, 2013

Phone for a pizza in April

Ever wonder what to do with your old mobile phone?

Or that outdated iPod that you upgraded from years ago?

Or the myriad of chargers tangled up in a drawer that don't seem to fit any of your current gadgets?

If you're hungry for an answer, Pizza Pizza might be the solution.

In delivering on its commitment to the environment, the pizza giant is offering up free pepperoni slices in return for your old phones, iPods and chargers during the month of April.

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March 26, 2013

Canada Revenue Agency turns up the heat on cash businesses

The Canadian tax system relies upon self-assessment, which means, essentially, that you’re trusted to be honest in your reporting, maintain good books, and hang on to the records needed to support your claim. And most people do just that.

Every year though, the CRA highlights certain areas in search of unreported income like cash-intensive businesses, such as restaurants, for instance.

Recently, CRA has taken to double-checking reported company revenues by indirect means, such as extrapolating total sales based on tip income declared by wait staff.

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March 19, 2013

Canadian franchises have the right stuff

BookWhat do franchises like Pizza Nova, M&M Meat Shops, Cora and Coffee Culture have in common?

They all have the ingredients to be financially successful.

In Canada, one out of every five dollars spent ends up in the cash register of a franchise operation.

That's more than $100 billion each year, proving savvy marketing, solid fiscal planning and some calculated risks are helping franchises prosper north of the 49th parallel.

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February 20, 2013

Restaurants need to gear up for an aging population: report

Consumers over the age of 55 have have been eating out more over the past five years while younger generations have decreased their food service patronage, according to The NPD Group.

The reason: Boomers, as a group, have more discretionary income -- largely because so many are delaying retirement -- while younger people face particularly high unemployment rates, an anemic job and mounting debt. In other words, they're broke.

In the past, older consumers visited restaurants less frequently than than younger diners and received less marketing attention as a result. But that's changing.

Boomers and even older consumers have increased their share of restaurant traffic by six percentage points since 2008, while dining by Millennials has decreased by almost the same amount showing -- once again -- that business should be rethinking just who they market to, NPD reports.  

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January 21, 2013

Hooters trying its hand at family-friendly dining

Earlier this month, in an interview with Business Insider, a former Hooters waitress offered an intriguing answer to the question, "Did families ever come in" to the restaurant?

"Oh, yeah," she said. "We had families all the time. It's a very kid and family-friendly environment. Wives, girlfriends, kids. Not all the customers are men."

Um, what's that, former Hooters waitress? Are we talking about the same restaurant, the breasty, scantily-clad server environment with a nod to boobs right there in its name?

It would appear that we are, and the restaurant itself has made that clear. This week, Hooters will debut a new layout concept that's supposed to be more accommodating to family dining.

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November 12, 2012

Restaurants are fooling you into spending more money

Behavioural economics is a relatively new field in business, though as consumer tastes become more refined, and bargain hunting becomes more en vogue, it’s never been as prevalent.

1337952_rusted_neon_green_and_white_cafe_signWhat is behavioural economics? It’s the study of how social, cognitive and emotional factors play into the financial decisions of people and institutions. So, let’s put it to use.

The example I always offer when discussing behavioural economics is a good one I’d heard about airlines. Let’s say Airline X wants to attract more travellers by offering a sale, providing 25 per cent off all airfare for a limited time.

According to the principles of behavioural economics, Airline X would be better suited to advertise a contest where one in four tickets would be free. Instead of 25 per cent of all tickets – the same bottom line for the airline as one in four tickets being 100 per cent off – customers would be much more likely to jump at the chance of randomly winning entirely free airfare, thus boosting sales for Airline X through the form of a contest.

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November 09, 2012

Are consumers turning their backs on fast food?

It looks like consumers around the world aren't willing to keep trading down in their eating habits just because their incomes have stalled. In fact, it looks like some are just going to quit eating out  altogether, particularly at the lower end of the fast-food chain.

Big-Mac-thumbMcDonald's just reported its first monthly decline in same-store in a decade, BrandChannel reports, never a good sign when you're looking for economic indicators.

And trusty Canadian icon Tim Hortons, while in slightly better shape, has seen its growth slow as well. 

“Our growth rates were below those we have typically delivered in recent years,” Tim Hortons chief executive officer Paul House told analysts recently

Typically, fast-food outlets hold their own when the economy slides as even cost-conscious diners view them as a fairly low-cost indulgence. Except that doesn't seem to be the case this time around.

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October 18, 2012

NYC restaurants consider charging premium to dine in peak hours

When it comes to surcharges, upcharges and general nickel-and-dimery, the airline industry has no equal, feeing passengers to within an inch of their lives each time they travel.

1310241_fish_platterThough could the restaurant biz be next to follow?

Surely an economy that’s ravaged a sector with already-thin profit margins has led to some changes. Maybe you’ve noticed the little things that used to be complimentary – bread, say, or even dipping sauces or soft drink refills – are no more.

But a proposed charge to not what, but when, you dine could the new frontier in the cost of eating out.

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September 04, 2012

Would you frequent a restaurant that banned young kids?

A popular eatery in Ottawa has been taking flak recently after suggesting that a patron with a small child might want to dine elsewhere.

1197499_stop_1They didn't "ban" kids; but, given the local uproar, they might as well have. And they wouldn't be the first.

“Screaming Children Will NOT Be Tolerated!” say signs posted at one spot in North Carolina. And children six and under are no longer welcome at McDain's Restaurant, just outside of Pittsburgh.

Not because the owner doesn't like them. It's just that they've become too much of a bother for other customers. After all, there are a lot of restaurants that cater to families, he says.

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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...