Canadian Foodservice Industry Sales to Approach $60B in 2015



Canadian consumers continue to spend more and more at chain and branded restaurants, according to GE Capital’s annual Canadian Chain Restaurant Industry Review, an extensive research report on the state of chain foodservice in the country.

According to the Review, foodservice industry sales are expected to increase 4% to $59.8 billion in 2015. Diners spent more than $57.5 billion at commercial foodservice establishments in 2014, an increase of 4.9% over 2013 and equal to approximately 4% of the national gross domestic product.

Ontario and Quebec have the largest commercial foodservice sales at $22.2 billion and $10.5 billion, respectively, driven primarily by their larger populations. Per capita, Alberta has the largest commercial foodservice sales ($2,137), followed by British Columbia ($1,920). Quebec has the lowest commercial foodservice sales per capita ($1,278).

Nearly two-thirds (63.2%) of restaurant expenditures take place at chains, which include local, regional, national or international businesses. Those in Atlantic Canada spend the most at chain restaurants – 70 percent. Quebec has the greatest percentage of independent restaurant expenditures – 44.6% in 2014, down from 48.4% in 2013.

“Foodservice industry leaders recognize the need to be dynamic in response to the ever more sophisticated consumer, with more choices, more customization, more segmented or targeted positioning, healthier options and better-quality ingredients and flavors,” said Edward Khediguian, senior vice president of GE Capital’s Franchise Finance business in Canada. “In addition, there’s an awareness of the reduction in the span of concept and segment life cycles. They see the value of trying new concepts, such as fast casual or premium options, to take advantage of the ongoing trend toward eating meals away from home.”

Similar to 2014, operating costs continue to be the single greatest challenge for survey participants. However, in 2015, cost of goods sold was mentioned as a challenge by more respondents. The rising cost of proteins was cited frequently, as well. Labor costs and productivity were mentioned at the same frequency as in 2014.


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