The pandemic is not stopping expansion projects for the Normandin chain, which has announced a $10 million investment plan for 2022. It provides for the renovation of existing restaurants and the opening of new addresses.
This revitalization project will modernize several infrastructures of the chain, which has 43 restaurants and three hotels, generating more than 2,700 jobs in the province.
The first restaurant to be part of this plan is the one on boulevard Bastien, in Quebec, which has undergone a $700,000 facelift in recent weeks and which reopened its doors yesterday morning, in a brand new decor. It must be said that this is where everything began for Normandin in 1969.
The ready-to-eat
“In the $10 million, there is the opening of two new branches which is planned and the renovation of four restaurants”, affirmed Norbert Gagnon, president and general manager of the chain.
This is without taking into account the continued development of counters intended to sell ready-to-eat products. Due to the pandemic and the closure of dining rooms, many consumers have turned to these practical and easy-to-prepare products.
“We want to double sales in our shop spaces. There is a fundamental trend in ready-to-eat. Each time the dining rooms closed, that sector of our business expanded a lot, and each time it reopened, the volume of business we had created remained. It is now an important part of the business,” added Mr. Gagnon.
53 years of history
Over the past year, Normandin has established itself in Saguenay and Roberval.
“There is still room in Saguenay probably for a third restaurant. We are looking for sites. Therefollowing, the development will be done more in the west of the province. That’s what we’re working on right now.”
The chain is present as far as Sainte-Julie and, according to Mr. Gagnon, the steps are concentrated on the South Shore and the North Shore of the Montreal region.
“The chain is much better known in the east of the province than in the west. So we have the challenge of making the brand known. This is something that is very possible and there is really a demand for the type of family and everyday catering that we represent,” said Mr. Gagnon.
“We have lots of projects. We want this business to continue to grow and that is why there are investment projects. We have to keep ourselves young and we have to keep up to date both in our menu and in our restaurants,” he said.
The development of the hotel offer is also part of the future projects of Normandin, which also owns land.
In addition, the restaurant chain plans to increase its presence in supermarkets with its homemade products. During the pandemic, Normandin partnered with IGA des Sources to test the frozen pizza market.
“We discovered some very interesting opportunities,” concluded the CEO.
Challenges
Regarding the labor shortage, Normandin has its own international recruitment mechanisms, which have enabled it to hire nearly 120 foreign workers so far.
Facing the effects of inflation, the company is not standing apart and it too is under pressure on its production costs which “inevitably affects prices”, which have increased by around 10% for two years.
According to the annual HRImag and ARQ survey, nearly 83% of restaurant owners in Quebec say their prices will be higher in 2022, due to rising labor and food costs.
