Limited-Service Restaurants in Canada

PROSPECTS

Multiple challenges ahead for limited-service restaurants

Limited-service restaurants in Canada is expected to face several challenges over the forecast period. The falling foot traffic in retail locations presents a significant risk to limited-service restaurants, especially for those located within shopping centres.

Menu innovations to capture more customers

Limited-service restaurants not only compete through offering economical prices, but also seek to capitalise on the consumer desire for novelty and variety. KFC in Canada introduced the Bitcoin Bucket as a publicity stunt in early 2018, which can be paid for by Bitcoin.

Breakfast becomes a hot spot

Once overlooked by many restaurants, breakfast has become a new area for growth in Canada, with many limited-service restaurants placing more and more importance on breakfast offerings. Fewer Canadian consumers make breakfast at home due to their busy lifestyles, and many of them choose on-the-go options for convenience reasons.

COMPETITIVE LANDSCAPE

Jollibee plans massive expansion

Jollibee, a Filipino fast food chain with more than 1,000 locations worldwide, is planning to ramp up its store expansion to reach 100 locations in Canada in the coming five years. Fried chicken is its signature menu item, which attracts Filipino expatriates and food enthusiasts alike.

McDonald's Restaurants of Canada continues its growth story

With continuous price promotions and menu innovations, McDonald’s Restaurants of Canada has seen an increasing value share in limited-service restaurants. Technological upgrades contributed to its strong performance, which was driven by the growing popularity of delivery and mobile ordering.

Competing for consumers’ habits

Even though convenience and affordability are key competitive advantages of limited-service restaurants, some of them are implementing more initiatives to address consumers’ preferences and habits in an evolving competitive landscape. Whilst McDonald’s Restaurants of Canada is focusing more on the integration of digital services, A&W Food Services of Canada is looking to embrace sustainability.

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