Calgary

Earls asks ranchers for forgiveness for 'dumb decision'

After sales plunged by 30 per cent at some locations, Earls said sorry and put Canadian beef back on the menu.

Restaurant sales plummeted after Earls took Canadian beef off the menu

Earls hamburgers are made using Canadian beef. The restaurant chain became the target of a social media campaign when it announced in April it was using a U.S. beef supplier. (CBC)

A villain of the Canadian beef industry a few months ago, Earls president Mo Jessa was blunt as he took the stage in front of hundreds of ranchers Wednesday morning.

"We need to talk about what is likely on everybody's mind — why did I even show up?" he said to laughter. 

I am asking for your forgiveness.- Mo Jessa, Earls

The Vancouver-based restaurant chain came under fire when it announced it would start sourcing its beef from an American ranch accredited by the non-profit group Humane Farm Animal Care. After sales plunged by 30 per cent at some locations, Earls said sorry and put Canadian beef back on the menu.

In hindsight, Jessa simply called it a "dumb decision" to not even consult with the farmers in Canada.

"I am asking for your forgiveness and allow me the chance to work with the industry," he said at the Canadian Beef Industry Conference in Calgary.

After the controversy, Jessa said he visited several ranches on the Prairies and rode enough horses that he "woke up sore many mornings."

Not only did Earls stop selling Canadian beef, the move also suggested that the ranchers in this country weren't taking care of their animals.

"There was an implied association that Canadian beef was inhumane — and when that came out, it broke my heart," Jessa told reporters. "For Canadian ranchers to feel that they were inhumane was just terrible."

The sold-out crowd of more than 500 at the beef conference gave Jessa several ovations, suggesting the animosity has subsided.

"It's been well responded to by Earls," said Terry Hepper, who raises cattle near Zehner, Sask., about 25 kilometres northeast of Regina. "I feel it's over with."

Earls says its customers still want third-party animal welfare verification, but he can find that in Canada instead of south of the border.

Higher standards for beef sought

Earls is not the first nor the last major restaurant chain wanting to serve its customers something other than ordinary beef. 

One reason A&W's sales have been growing faster than the majority of its competitors recently is because it began serving beef from cows raised without the use of hormones or steroids. The company also sourced chicken and pork raised without the use of antibiotics, and eggs from hens not fed animal byproducts.

Our guests are more interested in health and what they are putting in their bodies.- Sam Heath, Tim Hortons

Tim Hortons is now launching its own research into what type of beef its customers want to be served.

"We want to make sure we are delivering to our guests what they are looking for," said Sam Heath, a vice-president of marketing for Tim Hortons. "Our guests are more interested in health and what they are putting in their bodies. We want to make sure we are at the front of the conversation."

The cattle industry hopes a new program to certify some products as "sustainable beef" will suit the needs of many restaurants. The Canadian Roundtable for Sustainable Beef is developing a list of criteria that would define the new label.

Earls said it has recovered financially from the sudden slump in sales following its initial decision to dump Canadian beef.

ABOUT THE AUTHOR

Kyle Bakx

Business Reporter

Kyle Bakx is a Calgary-based journalist with the network business unit at CBC News. He files stories from across the country and internationally for web, radio, TV and social media platforms. You can email story ideas to [email protected].