TSX:KEG.UN - Post by User
Post by
logicandinertiaon Nov 10, 2020 6:23am
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Post# 31868606
Store visit - some feedback
Store visit - some feedbackwent to a Keg last night in a region of the GTA still open and spoke to manager. Observations:
Patio was full, and they are trying to keep open for as long as possible. by this time last year, was shut, but with heaters and unseasonably warm weather, going to keep it going.
REstaurant inside was close to capacity (50%)
Getting lots of spillover from those regions like Peel/Toronto that are still closed.
Usually see big holiday party business but with limits to party size and overall restaurant capacity, won't see as much this holiday season.
Demographic that hasn't returned is seniors, and expect big pent up demand from this group when effective vaccine is distributed. Demographic that was most evident last night was millenials and families.
Opined that they hoped to gain share due to closing of some competitors (i.e. Canyon Creek but there are others), and maybe more importantly, there are usually a spate of new entrants which come in and compete in any given year. with covid, there has been almost no new "dine-in" competitors targeting Keg business. This is maybe as important as those existing competitors leaving the market.
Considering that this was a Monday night, the traffic and relatively full parking lot surprised me.
Keg has historical brand power among Canadians, good locations, not unreasonable pricing, consistent quality (hard to mess up meat), and aims to benefit from the consolidation in the market. for patient investors, collect the dividend and wait for the vaccine(s) to play out.
Good luck...