The consumer foodservice landscape in Canada continues to evolve, driven by the shift in consumer demand towards healthy, sustainable food choices and unique dining experiences. Despite the multiple challenges faced by the industry, consumer foodservice in Canada grew steadily over the course of 2018.
Ethnic diversity and multiculturalism have a profound influence on consumer foodservice in Canada, contributing to a diverse food environment. The number of ethnic restaurants continues to increase, driven by the growing number of immigrants, which is expected to rise from the current 22% of Canada’s total population to over 25% in 2036, according to Statistics Canada.
The consumer foodservice industry in Canada has experienced several waves of consolidation – a trend which continued into 2018. The Canadian consumer foodservice landscape is highly competitive, and most restaurants run on thin profit margins.
Independent consumer foodservice operators in Canada have been able to maintain steady growth with their unique positionings, even though chained consumer foodservice accounts for a larger share of value sales. Whilst not being able to achieve the same economies of scale as their chained counterparts, independent operators have the freedom to adapt to local tastes and to be more creative with their food preparation, which is highly valued by consumers who are looking for authentic and unique dining experiences.
Consumer foodservice is expected to see moderate but steady growth over the forecast period, supported by consumers’ desire for experiences, technology-driven convenient meal options and plant-based meals. The per capita spending on dining out in Canada is still lower than in the US, indicating that there is more room for growth.
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This industry report originates from Passport, our Consumer Foodservice market research database.