Limited-Service Restaurants in Canada

PROSPECTS

Limited-service restaurants operators continue to adapt to healthy eating trend

In recent years, many major limited-service restaurants chains have found that adding healthier choices to menus – as with McDonald’s decision to offer salads and smoothies, for example – is good business. Aside from ensuring chains are better equipped to cater to an increasingly health-conscious consumer base, this approach can boost profitability, as healthier alternatives often have higher margins than standard items.

Several chains introduce menu items made with meat substitutes

Plant-based meat substitute Beyond Meat experienced a boom in popularity in Canada in 2019, with a plethora of limited-service restaurants chains adding meals made with this product to their menus. Most notably, in September McDonald’s began trialling a Beyond Meat-based burger called the P.

Number of chains partnering with third-party delivery services set to continue rising

To expand their reach and avoid losing ground to competitors that have already taken similar action, limited-service restaurants chains in Canada are increasingly working with third-party food delivery operators like Just Eat, UberEats, SkipTheDishes and Foodora. McDonald’s was among the biggest names to embrace this strategy during the review period, teaming up with UberEats and SkipTheDishes to roll out its “McDelivery” service in locations across the country.

COMPETITIVE LANDSCAPE

Tim Hortons aims to strengthen competitiveness with new loyalty programme

Loyalty programmes tend to be more profitable for limited-service restaurants chains than discount campaigns, as consumers must spend money to earn rewards. Moreover, they provide consumer data that can be harnessed to enhance competitiveness.

McDonald’s opens two “Green Concept Restaurants” in Canada

As part of its global sustainability drive, McDonald’s opened two “Green Concept Restaurants” in Canada in 2019. Located in London, Ontario and Vancouver, British Columbia, these outlets will serve as testing grounds for new eco-friendly packaging solutions and recycling initiatives.

Plant-based chain Copper Branch pursues aggressive expansion strategy

Canada has witnessed the emergence of a number of plant-based limited-service restaurants concepts in recent years. These include Copper Branch, which was founded in Montréal in 2014 and is positioned as offering “plant-based power food”.

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