The Channel market value (OSP) of the foodservice industry in Canada reached USD 94,116.75 million in 2024
The indicator recorded a historical growth (CAGR) of 14% between 2021 to 2024 and is expected to grow by ...
GlobalData projects the indicator to grow ...
Canada foodservice market analysis
Canada’s foodservice profit sector market declined in value sales during 2015–2020. The impact of the first and second waves of COVID-19 in 2020 significantly impacted consumer confidence, resulting in less frequent visits to on-premises channels. Overall increased financial debts across businesses and high unemployment as a result of the COVID-19 crisis hampered consumer expenditure on goods and services. The profit sector in the Canadian foodservice market will recover strongly and generate a double-digit CAGR during 2020–2025, the growth being driven by an increase in the number of transactions. Increasing takeout and rising demand for dining out will drive the profit sector’s growth in Canada in the coming years.
Quick service restaurants: QSR was the largest foodservice channel, the number of transactions in the channel increased during the review period. The average transaction price decreased; however, the number of outlets increased. The channel’s value growth was supported by its pocket-friendly prices and the convenience offered. The increase in demand for takeout services reflects Canadians’ increasing desire for convenience. Digital platforms played an important role in the channel’s sales, with many eateries beginning to provide online ordering services.
Full-service restaurants: FSR was the second-largest foodservice channel in Canada in 2020, its value sales declined during 2015–2020, driven mainly by the drop in the number of transactions during the period. The average transaction also declined, reflecting consumers’ low confidence in visiting public places. The food industry accounted for the majority of purchases in FSRs, beef remained the largest category, followed by chicken.
Coffee & tea shop: The coffee & tea shop channel was the third-largest channel in Canada’s foodservice profit sector in 2020. During 2015–2020, the channel suffered a drop in value sales. However, the channel is projected to achieve strong value growth during 2020–2025. Furthermore, growth in the number of transactions as well as in the average transaction value in the coming years reflects a significant rise in demand for speciality and premium coffee.
Pub, club & bar: The channel registered a significant decline in 2015-2020, primarily due to lockdown restrictions, which were more stringent within this channel, especially in nightclubs. As a result, transactions across the channel declined sharply in 2020. The channel was heavily fragmented in Canada and dominated by independent operators, with five major pub, club & bar operators in the country. The availability of beverages with superior taste/quality building momentum among young consumers, premium and high-quality craft beers are anticipated to gain more popularity in the coming years.
Channel future growth highlights
The Canadian profit sector is projected to increase during 2020–2025, driven by growth in the number of transactions as well as outlets across all channels. QSR will remain the largest channel. Transaction growth will be strongest in the travel channel, followed by the leisure channel. Rises in outlet number will be strongest in the mobile operator and coffee & tea shop channels. As transaction growth will exceed outlet growth in all channels, operators will face rising pressure to optimize operational efficiency as they attempt to attract more customers per outlet.
Operator selling prices (OSP) represent the amount that the consumer spends on food and drinks in foodservice channels, once the foodservice operator has added on any fees and levies, and their margin. This is often known as “retail sales equivalent” and represents the end value of the foodservice market.
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