Canada Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Canada Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Canada foodservice market is expected to register a CAGR of 4.55% during the forecast period (2021 - 2026).

There has been a definite impact of the COVID-19 outbreak on the overall foodservice business, with various segments being affected in varying degrees in Canada. Foodservice operators and caterers are on the front line of rising inflation.

In-restaurant dining is the worst-hit segment, largely due to the travel curbs and a general avoidance of people getting into a larger gathering.

Large chained limited-service restaurants performed slightly better than other channels because they already had the infrastructure to accommodate delivery and online order platforms during the pandemic.

The Canadian foodservice market is primarily driven by the increasing frequency of dining out and time-pressed schedules. For instance, according to the General Social Survey, about 54% of Canadians eat out once a week or more, due to the convenience and socializing factor. According to the USDA, the United States dominated the Canadian market for imported prepared food products with 86% of the total market.

Full-service restaurants are growing with high growth rates. Quick-service restaurants or full-service restaurants hold a prominent share in the overall foodservice business in Canada. The Canadian foodservice business is constantly growing due to Canada’s economy, which is operating at full capacity.

Key Market TrendsRapid Expansion of Global Foodservice Brands

Yum! Brands, one of the largest foodservice providers in Canada, with popular brands, such as KFC, and Pizza Hut, is embarking on huge expansion plans across the country, in order to effectively penetrate its presence in targeted cities, such as Toronto, Vancouver, Calgary, Montreal, Halifax, Ottawa, and Edmonton. The companies, such as McDonald’s and Starbucks Corporation, are also undertaking expansion plans, rolling out innovative menus, and enhancing their portfolios, in order to gain a stronghold in this lucrative market. For instance, according to McDonald’s Financial Information Workbook (2019), the number of stores in Canada increased and reached 1,478 in 2019, while it was 1,417 in 2012. Moreover, there were 3,240 Subway stores in Canada in 2017.

Chained Restaurants to Drive the Canadian Market Growth

Foodservice providers, such as fast-food restaurants, cafes, and quick serving restaurants, majorly rely on effective marketing, advertising, and product campaigns to increase sales and create awareness about the offerings. ​Key players are increasingly utilizing several social media platforms, such as Facebook, Twitter, and Instagram, to attract consumers, especially in the age group of 18-26 years. For instance,

Domino's advertising spending increased and reached USD 40 million in 2017, while it was USD 34.5 million in 2016. Similarly, McDonald's spent more than USD 88 million for the advertisements of its products via television media in 2018 ​

The leading restaurant chains of Canada in terms of the number of outlets include MTY Group, Tim Hortons, Subway, Starbucks, McDonald's, Yogen Fruz, A&W Foodservices, and International Dairy Queen.

Competitive Landscape

The Canadian foodservice industry is highly competitive due to the substantial number of small, independent, single-location restaurants that operate in the market. The major players in the market include McDonald's Corp., Restaurants Brand International, and Starbucks Corporation, among others. Both global and local players are gaining popularity, and they continue to expand in the country.

Product innovations and partnerships are the key strategies adopted by the key players operating in the market.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Restaurant Brands International Inc. (Burger King Corporation)
Starbucks Corporation
McDonald's
Jubilant FoodWorks Ltd
Yum! Brands Inc.
Dunkin' Brands
Telepizza
Recipe Unlimited Corp.
A&W Food Services of Canada Inc.
MTY Food Group Inc.

Please note: This publisher does offer titles that are created upon receipt of order. If you are purchasing a PDF Email Delivery option above, the report will take approximately 2 business days to prepare and deliver.