Olympics a boost to restaurant profits in B.C.

VANCOUVER—Canadians celebrating the country’s success during the 2010 Olympic Winter Games responded by opening up their wallets.

Vivonet, a supplier of web-based POS systems to restaurants, was able to measure dining trends during the Vancouver 2010 Winter Olympic Games.

The study, using sales data gleaned from 1,528 restaurants and foodservice outlets, indicated huge sales increases for the province the first week of the Games.

In Vancouver’s Yaletown district, spending from Feb. 12-21 increased 128 per cent compared to the same time period a year earlier. Downtown Vancouver restaurants saw an increase of 89 per cent during the Games.

Whistler has also benefited from the Olympics, as overall spending jumped by 44 per cent. Sales at limited service restaurants are up 80 per cent, while full-service is up 56 per cent. Even sales in Eastern Canada increased six per cent during the Games, but spending in the Prairies remained flat, according to the study.

Brad Brooks, director of marketing at Vivonet, says the information provides an accurate breakdown of the economic stimulus of the Olympics or any large event. Restaurants can use the data to plan their business strategies for future events, like the 2012 Summer Games in London, England.

“It answers questions like, what is the best proximity to the venue, how do road closures impact on business, and how much should you be charging?” Brooks says.  
Vivonet’s study also showed that while certain areas of Vancouver and Whistler were booming, others, like businesses in the suburbs or outside the downtown core, were not.

John Bishop, owner of Bishop's Restaurant in Kitsalano, agreed, saying the restaurants not in the main tourist areas had a tougher time of it. Business at Bishop's remained steady during the Olympics.

"The atmosphere was tremendous and it was good to see so many people out on the streets," Bishop said. "We were very busy."

He said the Games happened at just the right time to push restaurants out of a long period of reduced consumer spending.

A study from payment processing company Moneris Solutions indicates spending at bars and pubs in Whistler and Vancouver increased by 130 per cent over the same period last year.

Overall sales were up 48 per cent compared to the time frame in February 2009, while souvenir sales jumped 373 per cent.

Spectators nearly doubled the rate of sales for clothing and visitors from oversees rang up 22 per cent of all transactions.

“Canadians and international visitors demonstrated their pride by supporting not only their favourite athletes but also local shops, restaurants and attractions,” said David Ades, vice president of sales and marketing at Moneris, in a statement.

Credit and debit cards held by Canadians took the biggest hit, as locals were responsible for more than 78 per cent of all spending, followed by the United States at 9.1 per cent.

Chinese visitors were the biggest spenders, averaging $423 per transaction. Russia was in second place with $236 and Japan third with $89.

When Alexandre Bilodeau won gold in mogels, the country’s first at an Olympics held on home soil, spending jumped 117 per cent. Sales spiked 127 per cent above average when Tessa Virtue and Scott Moir struck gold in ice dance.

However, during the gold medal hockey game against the United States, the one thing Canadian did not do was shop, as sales plunged 41 per cent when compared to the previous five days.

“From viewing the data, it is clear that if you’re outside the core event areas, you’d better create the atmosphere of the event within your four walls,” says Ian Tostenson, president of the British Columbia Restaurant and Foodservices Association.

“If you’re in a venue area, the biggest challenge you’ll have is keeping up with demand. Prepare as much ahead as possible, without sacrificing your quality.”

Vivonet planned to continue the monitoring after the Games are over to see if spending dropped off after visitors left Vancouver.