Canada Foodservice Market - Growth, Trends, and Forecasts (2023 - 2028)

The Canadian Foodservice Market is Segmented by Type (Full-service Restaurants, Quick-service Restaurants, Self-service Restaurants, Cafes and Bars, and 100% Home Delivery/Takeaway Stores) and Structure (Chained Restaurants and Independent Restaurants). The report offers market size and values in USD million during the forecast period for the above segments.

Canada Foodservice Industry Overview

Canada Foodservice Market Summary
Study Period: 2018 - 2028
CAGR: 4.55 %

Major Players

Canada Foodservice Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Canada Foodservice Market Analysis

The Canadian foodservice market is projected to register a CAGR of 4.55% during the next five years.

The increasing frequency of dining out and time-pressed schedules are primarily driving the Canadian foodservice market. Full-service restaurants are witnessing high growth rates. Quick-service or full-service restaurants hold a prominent share of the overall foodservice business in Canada. The Canadian foodservice business is constantly growing due to Canada’s economy, which is operating at total capacity. According to the Food Service and Hospitality report of May 2022, MTY group and Tim Horton's are the most prominent food service chains in Canada.

People, especially baby boomers and millennials, have become very health-conscious and want their food to be healthy and fresh. This is why full-service restaurants are growing in the region. Also, university and college-going students may not have the time to sit and eat proper meals. Therefore, they prefer takeouts and quick food services. Due to this, fast-food restaurants are growing in Canada. To expand the business, full-service restaurant companies are forming mergers and acquisitions. For instance, in November 2021, Recipe Unlimited Corporation, Canada's oldest and largest full-service restaurant company, acquired Plant Powered Ventures Ltd, which operates the original five Fresh-branded plant-based restaurants in Ontario.

Canada Foodservice Industry Segments

Foodservice defines the businesses, institutions, and companies responsible for any meal prepared outside the home. The Canadian foodservice market is segmented by type and structure. By type, the market is segmented into full-service restaurants, quick-service restaurants, self-service restaurants, cafes and bars, and 100% home delivery/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 chain 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 Stores
By Structure
Chained Restaurants
Independent Restaurants

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Canada Foodservice Market Trends

This section covers the major market trends shaping the Canada Foodservice Market according to our research experts:

Rapid Expansion of Global Foodservice Brands

Global food service brands, such as Starbucks, McDonald's, and Domino's, are rapidly increasing in Canada owing to the large population of young people in the country. Students going to universities and colleges always prefer to have breakfast and lunch quickly and need restaurants near the college premises. Owing to this factor, food service brands are opening new food outlets near every college and university. Yum! Brands, one of the largest foodservice providers in Canada, along with brands such as KFC and Pizza Hut, is embarking on huge expansion plans across the country to effectively penetrate its presence in targeted cities, such as Toronto, Vancouver, Calgary, Montreal, Halifax, Ottawa, and Edmonton. Companies such as McDonald’s and Starbucks Corporation are also undertaking expansion plans, rolling out innovative menus, and enhancing their portfolio to gain a stronghold in this lucrative market. For instance, according to Starbucks Corporation, the number of licensed and company-owned stores in Canada increased and reached 1,518 in 2021. Similarly, Tim Hortons’ restaurants in Canada reached around 3,802 in 2021.

Canada Foodservice Market : No of Leading Restaurant Chains, Canada, 2022

Ethnic Diversity and Multiculturalism Driving the Market

Canada has a population with diversified ethnic origins. Apart from Canadians, the country is home to a significant population that has migrated from other countries like China, India, Nigeria, Iran, and South Korea. With a large foreign-born population, consumers are keen to experience dishes from cultures other than their own. They prefer to experience different cultures through food, directly influencing them to seek out ethnic food restaurants. Moreover, the consistent rise of immigrants settling across the country over the past few decades has developed a space for multi-national cuisines for the residents of Canada. Many ethnic cuisine restaurants, like Afghan Cuisine restaurant, Leng's Chinese food, and Walia Ethiopian restaurant, are providing their native cuisines in Canada. Owing to the above-mentioned factors, a significant share of the migrant population has successfully set up restaurant units to offer their ethnic cuisines to Canadian consumers.

Canada Foodservice Market: No. of immigrants living in Canada, 2021

Canada Foodservice Market Competitor Analysis

The Canadian food service 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. Both global and local players are gaining popularity and continue to expand in the country. Product innovations and partnerships are the key strategies being adopted by players operating in the market.

Canada Foodservice Market Top Players

  1. Starbucks Corporation

  2. McDonald's

  3. Yum! Brands

  4. Restaurant Brands International Inc.

  5. Domino's Pizza Inc

*Disclaimer: Major Players sorted in no particular order

Canada Foodservice Market Concentration

Canada Foodservice Market Recent Developments

  • November 2022: MTY Food Group Inc.'s USA franchise formed a definitive merger agreement to acquire Wetzel’s Pretzels, a franchisor and operator of quick service restaurants operating in the snack category.
  • August 2022: McDonald's Canada introduced a new permanent item, the McCrispy sandwich, to the menu. The sandwich contains Canadian-raised seasoned chicken breast, shredded lettuce, and mayo-style sauce served on a potato bun.
  • August 2021: McDonald's Canada launched five new items, including Spicy Chicken Nuggets with Mighty Hot Sauce, Crispy Chicken Sandwich, Deluxe Crispy Chicken Sandwich, Spicy Crispy Chicken Sandwich, and McPlant.

Canada Foodservice Market Report - 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 Stores

    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 Adopted Strategies

    2. 6.2 Market Share Analysis

    3. 6.3 Company Profiles

      1. 6.3.1 Restaurant Brands International Inc. (Burger King Corporation)

      2. 6.3.2 Starbucks Corporation

      3. 6.3.3 McDonald's

      4. 6.3.4 Tim Horton's

      5. 6.3.5 Yum! Brands Inc.

      6. 6.3.6 Dunkin' Brands

      7. 6.3.7 Telepizza

      8. 6.3.8 Recipe Unlimited Corp.

      9. 6.3.9 A&W Food Services of Canada Inc.

      10. 6.3.10 MTY Food Group Inc.

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

**Subject to Availability
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Canada Foodservice Market Research FAQs

The Canada Foodservice Market is studied from 2018 - 2028.

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

The Canada Foodservice Market is valued at 94 Billion USD in 2018.

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

Canada Foodservice Industry Reports

In-depth industry statistics and market share insights of the Canada Foodservice sector for 2020, 2021, and 2022. The Canada Foodservice research report provides a comprehensive outlook of the market size and an industry growth forecast for 2023 to 2028. Available to download is a free sample file of the Canada Foodservice report PDF.

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