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Local restaurants struggle to keep doors open amid rising costs: Andrew Coppolino – CBC.ca

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Local restaurants are noticing a phenomenon that’s impacting their bottom line: The “hermit consumer.”

It’s a term Waterloo, Ont., restaurateur Gabriel Malbogat used in a recent interview.

Similar to the mid-1980s trend known as “cocooning” — where people stayed home in a sort of isolated “bubble” — hermit consumers and its hermit economy is a global phenomenon where people stay at home and order in food and supplies.

That has had a significant impact on the food service industry, research company GlobalData says.They cite statistics that show revenue generated by dine-in sales is down 12 per cent compared to 2019 while revenue from takeaway meals is up a staggering 46 per cent.

So why is this a problem, if restaurants are still getting orders for food?

Fred Diamond, senior food consultant consumer custom solutions at GlobalData, said in a release people are still sepnding and consuming “but in a radically different way.”

The major beneficiaries of [pandemic] lockdowns, such as delivery platforms, have of course aimed to maintain their new-found dominance. The rise in ‘ghost kitchens,’ which are delivery-only foodservice outlets, has also served to cement this new landscape,” Diamond said.

“But this is not simply an equal shift from dine-in to takeaway. In many regions, such as Asia and Europe, foodservice markets are down on 2019 levels.”

Impact of delivery apps locally

Malbogat owns and operates the popular quick-service restaurant Chef on Call near the University of Waterloo (with locations in London and Montreal) which long before the pandemic created their own proprietary delivery system for their casual but high-quality burgers, chicken tenders, poutines and pasta.

He has seen firsthand how consumer behaviour changed because of the pandemic and third-party delivery apps saw “a huge” uptake of user activity.

“It drove nearly a decades’ worth of growth within the delivery sector of the industry in a year. New ball game,” Malbogat said. 

“We were no longer the only delivery restaurant competing with McDonald’s. You had 20 different restaurants trying to deliver their burgers.”

Chef on Call was nimble, robust and reacted to the altered landscape and continues to thrive today, he said. In fact, in the courtyard off Columbia Street W. where the restaurant is situated, it is one of the only original food operations that survived.

‘Coupon effect’ of delivery apps

When it comes to habits, third-party food-delivery apps feed what I call a “coupon effect”: training consumers, who order from their couches or call while walking back from the bar so their late-night snack arrives at home at the same they do, to look for discounted food.

If the app says there’s no discount at a particular restaurant, there could be no order made — and it’s on to the next restaurant’s freebie. The apps give the hermit consumer promotional offers like buy-one, get-one deals, 50 per cent of which the app covers. 

It’s the type of promotion, in many cases, where restaurants feel they must participate.

Churrasqueira Madeira Barbecue and Grill, opened as a take-away spot during the summer last year but has recently put the business up for sale for $149,000. (Andrew Coppolino/CBC)

“If the restaurant took the promotion, you got to the top of the algorithm,” Malbogat said. “If you didn’t play the game, you got buried in the algorithm. Restaurants became dependent on that for revenue and were forced to work with the apps or they didn’t get the revenue.”

The restaurant, of course, could offer its own discounts and bargains, but that comes at a cost in an industry with notoriously small margins. The dynamic has created an imbalance in the triad of hermit consumer, restaurant and third-party delivery app, which can take as much as 35 per cent on the order from the restaurant.

For sale: local restaurants

Where has a good portion of the hermit economy seen the industry end up? In the MLS real estate listings: by my rough count, there are three dozen quick-service restaurants for sale in the region — pizza joints, express Indian takeaway, and shawarma restaurants — but there are also some finer upscale casual venues and Italian pasta houses.

Shattered supply lines, rising food costs, higher labour costs, and general instability in the economy greatly hampered the food and beverage industry over the last few years and it’s difficult to see it ever get back to pre-pandemic levels.

Malbogat doesn’t speak for the industry but has been observing carefully the number of restaurants for sale and has taken measures to protect his staff and his businesses, accordingly.

The number is in part an indication of a generally stagnant economy, inflation and even changes in tipping culture of new hermit consumer habits, much of it driven by third-party delivery apps.

“We’re going to see a lot of closures,” Malbogat says. “If you’re opening a restaurant, don’t buy new equipment. There’s so much used available.” 

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Ottawa orders TikTok’s Canadian arm to be dissolved

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The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.

Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.

The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.

However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.

“We will challenge this order in court,” the spokesperson said.

“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.

At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”

Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.

Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.

Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.

Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.

While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.

Wednesday’s dissolution order was made in accordance with the act.

The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.

— With files from Anja Karadeglija in Ottawa

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.

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Here is how to prepare your online accounts for when you die

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LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

X

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Google’s partnership with AI startup Anthropic faces a UK competition investigation

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LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

The Canadian Press. All rights reserved.

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