Consumer Foodservice in Canada
Euromonitor International's Consumer Foodservice in Canada report examine stand-alone restaurants and eating establishments in which the consumer can freely choose to eat. The report looks at market trends by sector (cafes/bars, full-service restaurants, fast food, home delivery and street stalls). It profiles the leading companies in the market and analyses factors influencing eating out patterns. Forecasts illustrate how the market is set to change
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Tables: 110 | Publication date: Sep 2007
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- Get insight into trends in market performance
- Pinpoint growth sectors and identify factors driving change
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Product coverage
Consumer foodservice by chained/independent; Consumer foodservice by type; Consumer foodservice by type and chained/independent
Executive summary
Better economic conditions help pull the market out of low-growth years
The entire consumer foodservice market suffered after 2001 when a series of negative events devastated the country’s tourism and hospitality industry. This particularly affected the higher-cheque sectors such as full-service restaurants and cafés/bars, but given their disproportionate share of total value sales the entire market was negatively affected: constant value growth between 2002-2005 never exceeded population growth, and some years saw outright declines. Tourism remains shaky, but most of the other issues affecting consumer foodservice have eased, and a booming fast food sector has enabled value sales to see growth in 2006 above the population rate for the first time since 2001.
Health-conscious consumers drive menu changes
Health concerns have been around for years, but it was only in the review period that they have begun to seriously affect consumer foodservice. In 2004, the low-carb craze prompted chains to offer bizarre menu selections, and trans fats became a major issue in 2005, but 2006 saw an increasingly holistic concern about health become apparent. With proposed nutritional labelling threatening to harm the industry, the Canadian Restaurant and Foodservice Association (CRFA) formed an association of consumer foodservice players to promote a more low-key and voluntary form of nutritional labelling, called the Nutrition Information Program.
Even more fundamentally, consumption is shifting away from ‘unhealthy’ to ‘healthy’ categories. Burger and chicken fast food have been some of the biggest losers in this move, while Asian fast food and juice bars have been booming. Menu changes that offer robust, healthy options have also been embraced by some of the biggest operators. The recent rebounding by McDonald’s Restaurants of Canada Ltd has been chalked up to many wise decisions, including that to offer substantially healthier products, such as sliced apples and salad.
Tim Hortons increases its leading position
Growing at a double-digit rate for the second year in a row, Tim Horton’s Inc added nearly C$1 billion to its sales between 2004-2006. This rate and magnitude of growth are simply unprecedented, and have enabled the company to widen the gap between itself and the second-biggest consumer foodservice chain, McDonald’s Restaurants of Canada Ltd. Tim Horton’s Inc has grown so large that its performance affects the entire market, and unlike more maligned chains such as Starbucks Coffee Canada Inc is increasingly responsible for sharp declines in the independent fast food category.
Flexibility becomes a key issue for consumers
Consumers increasingly want flexibility from their foodservice outlets. This may take many forms, but it is most particularly tied to takeaway and delivery, and to co-locating and co-branding. Consumers are no longer as interested in exclusive takeaway and delivery outlets as they are in standard full-service restaurants and fast food venues that can also provide them with takeaway and delivery services. Consequently, sales in 100% home delivery/takeaway stagnated during the review period while casual dining chains that embrace delivery – such as East Side Mario’s – performed well. In addition, the co-locating and co-branding of two distinct consumer foodservice fascias at one venue has risen in popularity. Consumers appreciate the increased diversity of products they can buy from these outlets, especially compared to a restaurant’s standard fare.
Growth in the forecast period will improve
Growth will be substantially better in the forecast period than it was during the review period, as the economy remains generally strong and consumers prefer convenience and flexibility over value. In addition, the shifting of consumption within full-service restaurants from family outlets to casual dining will boost value sales at a rate faster than the anticipated population growth.
Table of contents
CONSUMER FOODSERVICE IN CANADA : MARKET INSIGHT
EXECUTIVE SUMMARY
Better economic conditions help pull the market out of low-growth years
Health-conscious consumers drive menu changes
Tim Hortons increases its leading position
Flexibility becomes a key issue for consumers
Growth in the forecast period will improve
KEY TRENDS AND DEVELOPMENTS
A strong economy encourages premiumisation
Healthiness remains an issue for price-conscious consumers
The convenience of delivery and takeaway is a priority for consumers
Coffee underpins some of the market’s strongest growth
Co-branding and co-locating continue to expand
MARKET DATA
Table 1 Units, Transactions and Value Sales in Consumer Foodservice: 2001-2006
Table 2 Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2001-2006
Table 3 Consumer Foodservice by Independent Vs Chained Outlets: Units/Outlets 2006
Table 4 Consumer Foodservice by Eat in Vs Takeaway 2006
Table 5 Consumer Foodservice by Food Vs Drinks Split 2006
Table 6 Sales in Consumer Foodservice by Location 2001-2006
Table 7 Leading Chained Consumer Foodservice Brands by Number of Units 2006
Table 8 Chained Consumer Foodservice Company Shares 2002-2006
Table 9 Chained Consumer Foodservice Brand Shares 2003-2006
Table 10 Forecast Units, Transactions and Value Sales in Consumer Foodservice: 2006-2011
Table 11 Forecast Units, Transactions and Value Sales in Consumer Foodservice: % Growth 2006-2011
APPENDIX
published data comparisons
Table 12 Consumer Expenditure on Consumer Foodservice 2001-2005
Table 13 Operating Revenue for Foodservice Types 2001-2005
DEFINITIONS
Sources
Summary 1 Research Sources
LOCAL COMPANY PROFILES - CANADA
ALIMENTATION COUCHE-TARD INC - CONSUMER FOODSERVICE - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 2 Alimentation Couche-Tard Inc: Key Facts
Summary 3 Alimentation Couche-Tard Inc: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 4 Alimentation Couche-Tard Inc: Competitive Position 2006
PIZZA PIZZA LTD - CONSUMER FOODSERVICE - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 5 Pizza Pizza Ltd: Key Facts
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 6 Pizza Pizza Ltd: Competitive Position 2006
SECOND CUP COFFEE CO, THE - CONSUMER FOODSERVICE - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 7 The Second Cup Coffee Co: Key Facts
Summary 8 The Second Cup Coffee Co: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 9 The Second Cup Coffee Co: Competitive Position 2006
TIM HORTON'S INC - CONSUMER FOODSERVICE - CANADA
STRATEGIC DIRECTION
KEY FACTS
Summary 10 Tim Horton’s Inc: Key Facts
Summary 11 Tim Horton’s Inc: Operational Indicators
COMPANY BACKGROUND
COMPETITIVE POSITIONING
Summary 12 Tim Horton’s Inc: Competitive Position 2006
CAFéS/BARS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 14 Cafés/Bars by Subsector: Units/Outlets 2001-2006
Table 15 Cafés/Bars by Subsector: Transactions 2001-2006
Table 16 Cafés/Bars by Subsector: Foodservice Value 2001-2006
Table 17 Cafés/Bars by Subsector: % Volume Growth 2001-2006
Table 18 Cafés/Bars by Subsector: % Transaction Growth 2001-2006
Table 19 Cafés/Bars by Subsector: % Foodservice Value Growth 2001-2006
Table 20 Global Brand Owner Shares of Chained Cafés/Bars 2002-2006
Table 21 Brand Shares of Chained Cafés/Bars 2003-2006
Table 22 Forecast Sales in Cafés/Bars by Subsector: Units/Outlets 2006-2011
Table 23 Forecast Sales in Cafés/Bars by Subsector: Transactions 2006-2011
Table 24 Forecast Sales in Cafés/Bars by Subsector: Foodservice Value 2006-2011
Table 25 Forecast Sales in Cafés/Bars by Subsector: % Volume Growth 2006-2011
Table 26 Forecast Sales in Cafés/Bars by Subsector: % Transaction Growth 2006-2011
Table 27 Forecast Sales in Cafés/Bars by Subsector: % Foodservice Value Growth 2006-2011
FULL-SERVICE RESTAURANTS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 28 FSR by Subsector: Units/Outlets 2001-2006
Table 29 FSR by Subsector: Transactions 2001-2006
Table 30 FSR by Subsector: Foodservice Value 2001-2006
Table 31 FSR by Subsector: % Volume Growth 2001-2006
Table 32 FSR by Subsector: % Transaction Growth 2001-2006
Table 33 FSR by Subsector: % Foodservice Value Growth 2001-2006
Table 34 Global Brand Owner Shares of Chained FSR 2002-2006
Table 35 Brand Shares of Chained FSR 2003-2006
Table 36 Forecast Sales in FSR by Subsector: Units/Outlets 2006-2011
Table 37 Forecast Sales in FSR by Subsector: Transactions 2006-2011
Table 38 Forecast Sales in FSR by Subsector: Foodservice Value 2006-2011
Table 39 Forecast Sales in FSR by Subsector: % Volume Growth 2006-2011
Table 40 Forecast Sales in FSR by Subsector: % Transaction Growth 2006-2011
Table 41 Forecast Sales in FSR by Subsector: % Foodservice Value Growth 2006-2011
FAST FOOD IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 42 Fast Food by Subsector: Units/Outlets 2001-2006
Table 43 Fast Food by Subsector: Transactions 2001-2006
Table 44 Fast Food by Subsector: Foodservice Value 2001-2006
Table 45 Fast Food by Subsector: % Volume Growth 2001-2006
Table 46 Fast Food by Subsector: % Transaction Growth 2001-2006
Table 47 Fast Food by Subsector: % Foodservice Value Growth 2001-2006
Table 48 Sales of Bakery Products Fast Food by Type 2006
Table 49 Global Brand Owner Shares of Chained Fast Food 2002-2006
Table 50 Brand Shares of Chained Fast Food 2003-2006
Table 51 Forecast Sales in Fast Food by Subsector: Units/Outlets 2006-2011
Table 52 Forecast Sales in Fast Food by Subsector: Transactions 2006-2011
Table 53 Forecast Sales in Fast Food by Subsector: Foodservice Value 2006-2011
Table 54 Forecast Sales in Fast Food by Subsector: % Volume Growth 2006-2011
Table 55 Forecast Sales in Fast Food by Subsector: % Transaction Growth 2006-2011
Table 56 Forecast Sales in Fast Food by Subsector: % Foodservice Value Growth 2006-2011
100% HOME DELIVERY/TAKEAWAY IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 57 100% Home Delivery/Takeaway by Subsector: Units/Outlets 2001-2006
Table 58 100% Home Delivery/Takeaway by Subsector: Transactions 2001-2006
Table 59 100% Home Delivery/Takeaway by Subsector: Foodservice Value 2001-2006
Table 60 100% Home Delivery/Takeaway by Subsector: % Volume Growth 2001-2006
Table 61 100% Home Delivery/Takeaway by Subsector: % Transaction Growth 2001-2006
Table 62 100% Home Delivery/Takeaway by Subsector: % Foodservice Value Growth 2001-2006
Table 63 Global Brand Owner Shares of Chained 100% Home Delivery/Takeaway 2002-2006
Table 64 Brand Shares of Chained 100% Home Delivery/Takeaway 2003-2006
Table 65 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Units/Outlets 2006-2011
Table 66 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Transactions 2006-2011
Table 67 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: Foodservice Value 2006-2011
Table 68 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Volume Growth 2006-2011
Table 69 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Transaction Growth 2006-2011
Table 70 Forecast Sales in 100% Home Delivery/Takeaway by Subsector: % Foodservice Value Growth 2006-2011
SELF-SERVICE CAFETERIAS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 71 Self-service Cafeterias by Subsector: Units/Outlets 2001-2006
Table 72 Self-service Cafeterias by Subsector: Transactions 2001-2006
Table 73 Self-service Cafeterias by Subsector: Foodservice Value 2001-2006
Table 74 Self-service Cafeterias by Subsector: % Volume Growth 2001-2006
Table 75 Self-service Cafeterias by Subsector: % Transaction Growth 2001-2006
Table 76 Self-service Cafeterias by Subsector: % Foodservice Value Growth 2001-2006
Table 77 Global Brand Owner Shares of Chained Self-service Cafeterias 2002-2006
Table 78 Brand Shares of Chained Self-service Cafeterias 2003-2006
Table 79 Forecast Sales in Self-service Cafeterias by Subsector: Units/Outlets 2006-2011
Table 80 Forecast Sales in Self-service Cafeterias by Subsector: Transactions 2006-2011
Table 81 Forecast Sales in Self-service Cafeterias by Subsector: Foodservice Value 2006-2011
Table 82 Forecast Sales in Self-service Cafeterias by Subsector: % Volume Growth 2006-2011
Table 83 Forecast Sales in Self-service Cafeterias by Subsector: % Transaction Growth 2006-2011
Table 84 Forecast Sales in Self-service Cafeterias by Subsector: % Foodservice Value Growth 2006-2011
STREET STALLS/KIOSKS IN CANADA
HEADLINES
TRENDS
COMPETITIVE LANDSCAPE
PROSPECTS
SECTOR DATA
Table 85 Street Stalls/Kiosks by Subsector: Units/Outlets 2001-2006
Table 86 Street Stalls/Kiosks by Subsector: Transactions 2001-2006
Table 87 Street Stalls/Kiosks by Subsector: Foodservice Value 2001-2006
Table 88 Street Stalls/Kiosks by Subsector: % Volume Growth 2001-2006
Table 89 Street Stalls/Kiosks by Subsector: % Transaction Growth 2001-2006
Table 90 Street Stalls/Kiosks by Subsector: % Foodservice Value Growth 2001-2006
Table 91 Global Brand Owner Shares of Chained Street Stalls/Kiosks 2002-2006
Table 92 Brand Shares of Chained Street Stalls/Kiosks 2003-2006
Table 93 Forecast Sales in Street Stalls/Kiosks by Subsector: Units/Outlets 2006-2011
Table 94 Forecast Sales in Street Stalls/Kiosks by Subsector: Transactions 2006-2011
Table 95 Forecast Sales in Street Stalls/Kiosks by Subsector: Foodservice Value 2006-2011
Table 96 Forecast Sales in Street Stalls/Kiosks by Subsector: % Volume Growth 2006-2011
Table 97 Forecast Sales in Street Stalls/Kiosks by Subsector: % Transaction Growth 2006-2011
Table 98 Forecast Sales in Street Stalls/Kiosks by Subsector: % Foodservice Value Growth 2006-2011