The food services market defines those businesses, institutions, and companies responsible for any meal prepared outside the home. Over the years, the fast-food industry in Canada has revolutionized in size. In addition, the Canadian foodservice industry has also grappled with consumer preferences growing with the rapid rise of fast food consumption. Wherein the millennials and generation Zers are prodigious are the major fast-food spenders in the industry. The food sector traditionally includes food and beverages items; however, with the evolution of time, plant-based products have also been added to the food list. According to Renub research, Canada Food Service Market will be US$ 102.98 Billion by 2027.
Canada Food Service Industry – Market Drivers & Growth Trends:
The strong growth in the Canadian economy and high levels of consumer confidence is acting as significant market driver for industry operators. Besides, consumers are more willing to spend on discretionary products and services, such as fast food, when they feel confident about their finances, and the condition of the overall economy is also trending the market growth.
Further, with more access to technology, changes in legislation and increasing competition in the marketplace, consumers will begin to become better versed in understanding the ingredients in foods used in the industry, moving more conveniently towards fast food options. Our research findings state that Canada Restaurant Industry will grow with a nominal CAGR of 1.50% during 2021-2027.
Canada Foodservice Market Size was US$ 94.19 Billion in 2021:
The Canadian fast food industry is segmented into quick-service restaurants, full-service restaurants, caterers and drinking places. Full-service restaurant markets are growing with high growth rates. Besides, quick-service restaurants also hold a prominent share in the overall fast-food business in Canada. The relatable expansion of the Canadian foodservice business is constantly supported by Canada’s economy, operating at total capacity. Incrementally raising wages has propelled wherein fast food spending, population growth, the wealth effect from the highest housing prices in Canada, an increase in tourism, and a strong economy boost the Canadian restaurant industry.
Provincial Outlook – Canada Foodservice Market:
The fast-food industry is embarking on a substantial expansion plans across Canada to effectively penetrate its presence in targeted provinces, such as Newfoundland & Labrador, Prince Edward Island, Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta and British Columbia.
Ontario, Quebec and British Columbia lead in foodservice market growth throughout while Newfoundland and Alberta struggle to gain ground in the industry. With moderation from the significant increases in recent years, Ontario is among Canada’s fastest restaurant market growth due to a growing population and healthy job creation numbers. Hence as per our analysis, Ontario’s foodservice industry will keep leading the fast-food seemingly healthy throughout the forecasted period.
On the other hand, Quebec’s fast food industry boasted average annual market growth year on year over the past years. Growth was propelled by the active consumer, business, and tourist spending at restaurants and drinking places. Similarly, over the years, the fast-food market in British Columbia has also increased amongst the highest growth figure in Canada.
COVID-19 Impact on Canada’s Foodservice Market:
The overall fast-food business has had a definite impact with the COVID-19 outbreak, with various segments being affected in varying degrees in Canada. Fast-food operators and caterers are on the front line of rising inflation. Moreover, dine-in was the worst-hit segment in a restaurant, mainly due to the travel restrictions and a general avoidance of people getting into a more extensive gathering amidst pandemic. In addition, post-recovery from the pandemic, we expect the fast-food business to perform slightly better with the infrastructure to accommodate the consumers’ demand.
Competitive Landscape:
The Canad’s foodservice industry is extremely competitive due to the abundant number of independent, small, single-location restaurants that operate in the market. The major players in the market include Starbucks Corp., Papa John’s International Inc., Domino’s Pizza Inc., The Wendys Co. and Performance Food Group. As per our analysis, these players have gained popularity and will continue to expand in Canada.
Further, the players are also undertaking expansion plans, rolling out innovative menus, and enhancing their portfolios to gain a firm foothold in this fruitful market. For instance, in the year 2020, company Tim Hortons has introduced three types of Dream Donuts all over Canada. The three varieties include the Strawberry Confetti, Dulce de Leche Cr?me, and Chocolate Truffle.
Renub Research latest report “Canada Foodservice Market, Forecast By Restaurant Type (Quick Service Restaurants, Full Service Restaurants, Caterers and Drinking Places), Province (Newfoundland & Labrador, Prince Edward Island, Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta and British Columbia), Traffic (Full Service Restaurants (Morning Meal, Lunch, Supper and PM Snack) and Quick Service Restaurants (Morning Meal, Lunch, Supper and PM Snack), Food Items (French Fries, Potato, Sweet Potato, Onion Rings, Breakfast Item, Burger, Sandwich, Subs, Chicken, Breads, Salad, Pizza, Panzerotti, Calzone, Cakes, Squares, Muffins and Vegetarian Item (Incl Eggs/Dairy)), Beverage Items (Coffee, Carbonated Soft Drink, Pop, Soda, Water (includes tap water), Hot Tea, Alcoholic Beverages, Fruit Juice, Iced Tea, Milkshakes, Smoothies, Milk and Hot Chocolate), Plant-Based Products (Plant-based burgers and sausagesm, Non-alcoholic beer or wine, Lab-based “motherless” meat and Insects), Average Check Size – Per Person (Quick Service Restaurants, Full Service Restaurants (Midscale Dining, Casual Dining and Fine Dining) and Retail Foodservice), Channel (Delivery, Takeout, Drive Thru and Dine In), Operating Ratios (Cost of Sales, Salaries & Wages, Repair & Maintenance, Rental & Leasing, Utilities, Advertising, Depreciation, Other and Pre-Tax Profit, Companies (Starbucks Corp., Papa John’s International Inc., Domino’s Pizza Inc., The Wendys Co. and Performance Food Group)” provides a detailed analysis of Canada Food Service Industry.
Restaurant Type – Canada Foodservice Market has been covered from 4 viewpoints:
1. Commercial
1.1 Quick Service Restraunt
1.2 Full Service Restaurant
1.3 Caterers
1.4 Drinking Place
2. Non-Commercial
Province – Canada Foodservice Market has been covered from 10 viewpoints:
1 Newfoundland & Labrador
2 Prince Edward Island
3 Nova Scotia
4 New Brunswick
5 Atlantic Region
6 Quebec
7 Ontario
8 Manitoba
9 Saskatchewan
10 Alberta
11 British Columbia
Traffic – Canada Foodservice Market has been covered from 4 viewpoints:
1. Full Service Restaurants
- Morning Meal
- Lunch
- Supper
- PM Snack
2. Quick Service Restaurants
- Morning Meal
- Lunch
- Supper
- PM Snack
Food Items – Canada Foodservice Market has been covered from 10 viewpoints:
1. French Fries, Potato, Sweet Potato, Onion Rings
2. Breakfast
3. Burger
4. Sandwich, Subs
5. Chicken
6. Pizza, Panzerotti, Calzone
7. Salad
8. Breads
9. Cakes, Squares, Muffins
10. Vegetarian Item (Incl Eggs/Dairy)
11. Others
Beverage Items – Canada Foodservice Market has been covered from 10 viewpoints:
1. Coffee
2. Carbonated Soft Drink, Pop, Soda
3. Hot Tea
4. Fruit Juice
5. Hot Chocolate
6. Iced Tea
7. Milkshakes, Smoothies
8. Water (includes tap water)
9. Milk
10. Alcoholic Beverage
11. Other
Average Check Size – Per Person In Canada Foodservice Market has been covered from 3 viewpoints:
1. Quick Service Restaurants
2. Full Service Restaurants
- Midscale Dining
- Casual Dining
- Fine Dining
3. Retail Foodservice
Channel – Canada Foodservice Market has been covered from 4 viewpoints:
1. Quick Service Restaurants
1.1 Delivery
1.2 Takeout
1.3 Drive Thru
1.4 Dine In
2. Full Service Restaurants
2.1 Delivery
2.2 Takeout
2.3 Drive Thru
2.4 Dine In
Operating Ratios – Canada Foodservice Market has been covered from 9 viewpoints:
1. Cost of Sales
2. Salaries & Wages
3. Repair & Maintenance
4. Rental & Leasing
5. Utilities
6. Advertising
7. Depreciation
8. Other
9. Pre-Tax Profit
Company Analysis:
- Overview
- Recent Development
- Revenue
Companies Covered:
1. Starbucks Corp.
2. Papa John’s International Inc.
3. Domino’s Pizza Inc.
4. The Wendys Co.
5. Performance Food Group