Canada Foodservice Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The Canada Foodservice Market is segmented by Type (Full-service Restaurants, Quick-service Restaurants, Self-service Restaurants, Cafes and Bars, and 100% Home Delivery and Takeaway Stores) and Structure (Chained Restaurants and Independent Restaurants).

Market Snapshot

Canada Foodservice Market Overview
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 4.55 %
Canada Foodservice Market Major Players

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Market Overview

The Canadian foodservice market is expected to register a CAGR of 4.55% during the forecast period (2021 - 2026).

There has been a definite impact of the COVID-19 outbreak on the overall foodservice business, with various segments being affected in varying degrees in Canada. Foodservice operators and caterers are on the front line of rising inflation.

In-restaurant dining is the worst-hit segment, largely due to the travel curbs and a general avoidance of people getting into a larger gathering.

Large chained limited-service restaurants performed slightly better than other channels because they already had the infrastructure to accommodate delivery and online order platforms during the pandemic.

The Canadian foodservice market is primarily driven by the increasing frequency of dining out and time-pressed schedules. For instance, according to the General Social Survey, about 54% of Canadians eat out once a week or more, due to the convenience and socializing factor. According to the USDA, the United States dominated the Canadian market for imported prepared food products with 86% of the total market.

Full-service restaurants are growing with high growth rates. Quick-service restaurants or full-service restaurants hold a prominent share in the overall foodservice business in Canada. The Canadian foodservice business is constantly growing due to Canada’s economy, which is operating at full capacity.

Scope of the Report

Foodservice defines those businesses, institutions, and companies responsible for any meal prepared outside the home. The Canadian foodservice market is segmented by type into full-service restaurants, quick-service restaurants, self-service restaurants, cafes and bars, and 100% home delivery and takeaway stores. The quick-service restaurants can be further bifurcated into street stalls/kiosks and fast food centers. By structure, the market is segmented into chained restaurants and independent restaurants. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Type
Full-service Restaurants
Quick-service Restaurants
Street Stalls/Kiosks
Fast Food
Self-service Restaurants
Cafes and Bars
100% Home Delivery/Takeaway
By Structure
Chained Restaurants
Independent Restaurants

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Key Market Trends

Rapid Expansion of Global Foodservice Brands

Yum! Brands, one of the largest foodservice providers in Canada, with popular brands, such as KFC, and Pizza Hut, is embarking on huge expansion plans across the country, in order to effectively penetrate its presence in targeted cities, such as Toronto, Vancouver, Calgary, Montreal, Halifax, Ottawa, and Edmonton. The companies, such as McDonald’s and Starbucks Corporation, are also undertaking expansion plans, rolling out innovative menus, and enhancing their portfolios, in order to gain a stronghold in this lucrative market. For instance, according to McDonald’s Financial Information Workbook (2019), the number of stores in Canada increased and reached 1,478 in 2019, while it was 1,417 in 2012. Moreover, there were 3,240 Subway stores in Canada in 2017.

Canada Foodservice Market Key Trends

Chained Restaurants to Drive the Canadian Market Growth

Foodservice providers, such as fast-food restaurants, cafes, and quick serving restaurants, majorly rely on effective marketing, advertising, and product campaigns to increase sales and create awareness about the offerings. ​Key players are increasingly utilizing several social media platforms, such as Facebook, Twitter, and Instagram, to attract consumers, especially in the age group of 18-26 years. For instance,

Domino's advertising spending increased and reached USD 40 million in 2017, while it was USD 34.5 million in 2016. Similarly, McDonald's spent more than USD 88 million for the advertisements of its products via television media in 2018 ​

The leading restaurant chains of Canada in terms of the number of outlets include MTY Group, Tim Hortons, Subway, Starbucks, McDonald's, Yogen Fruz, A&W Foodservices, and International Dairy Queen.

Canada Foodservice Market Growth Rate

Competitive Landscape

The Canadian foodservice industry is highly competitive due to the substantial number of small, independent, single-location restaurants that operate in the market. The major players in the market include McDonald's Corp., Restaurants Brand International, and Starbucks Corporation, among others. Both global and local players are gaining popularity, and they continue to expand in the country.

Product innovations and partnerships are the key strategies adopted by the key players operating in the market. 

Recent Developments

In 2020, Tim Hortons launched three varieties of new Dream Donuts across Canada. The three varieties include Dulce de Leche Crème, the Strawberry Confetti, and Chocolate Truffle. The new offerings may be retailed for USD 1.99 plus tax at participating restaurants in the country.

In 2019, Recipe Unlimited Corp. acquired two Mexican-themed restaurants in Calgary named Anejo and Blanco Cantina. The company also announced plans to create franchises based on both establishments.

In 2018, MTY Food Group Inc. acquired Imvescor Restaurant Group Inc.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Full-service Restaurants

      2. 5.1.2 Quick-service Restaurants

        1. 5.1.2.1 Street Stalls/Kiosks

        2. 5.1.2.2 Fast Food

      3. 5.1.3 Self-service Restaurants

      4. 5.1.4 Cafes and Bars

      5. 5.1.5 100% Home Delivery/Takeaway

    2. 5.2 By Structure

      1. 5.2.1 Chained Restaurants

      2. 5.2.2 Independent Restaurants

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Restaurant Brands International Inc. (Burger King Corporation)

      2. 6.4.2 Starbucks Corporation

      3. 6.4.3 McDonald's

      4. 6.4.4 Jubilant FoodWorks Ltd

      5. 6.4.5 Yum! Brands Inc.

      6. 6.4.6 Dunkin' Brands

      7. 6.4.7 Telepizza

      8. 6.4.8 Recipe Unlimited Corp.

      9. 6.4.9 A&W Food Services of Canada Inc.

      10. 6.4.10 MTY Food Group Inc.

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Canada Foodservice Market market is studied from 2016 - 2026.

The Canada Foodservice Market is growing at a CAGR of 4.55% over the next 5 years.

Starbucks Corporation, McDonald's, Jubilant FoodWorks Ltd., Yum! Brands, Restaurant Brands International Inc. are the major companies operating in Canada Foodservice Market.

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