Consumer foodservice in 2024: The big picture
The consumer foodservice industry in Canada continued to grow in 2024, but at a slower pace than in previous years. A combination of economic pressures, including high menu prices, accumulated business debt, and reduced consumer disposable income, has resulted in weaker demand and lower foot traffic across restaurants.
2024 key trends
One of the most defining trends in 2024 was the challenge of maintaining profitability. According to a Restaurants Canada survey, approximately 60 percent of restaurants operated at a loss or broke even during the first half of the year.
Competitive landscape
Consumer foodservice in Canada remained highly concentrated, with large chains continuing to dominate key segments. Barriers to entry, including strict health and industry regulations, liquor licensing requirements, and high capital investment for start-ups, deterred many smaller independent operators from entering the market.
Independent foodservice developments
Independent operators were primarily concentrated in the full-service and limited-service restaurant channels. Like their larger counterparts, these businesses struggled with high operating costs, labour shortages, and weaker demand compared to 2023.
What next for consumer foodservice?
Despite the significant challenges the industry faced in 2024, the outlook for the coming years remains optimistic. The Bank of Canada announced that inflation has stabilised at the target rate, and forecasts suggest stronger economic growth in the near future.
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Overview:
Understand the latest market trends and future growth opportunities for the Consumer Foodservice industry in Canada with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Cafés/Bars
- Full-Service Restaurants
- Limited-Service Restaurants
- Self-Service Cafeterias
- Street Stalls/Kiosks
- Consumer Foodservice by Location
If you're in the Consumer Foodservice industry in Canada, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
The Consumer Foodservice in Canada report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Consumer Foodservice in Canada?
- Which are the leading brands in Consumer Foodservice in Canada?
- How are multinational and local operators competing and expanding in Canada?
- How are consumer lifestyle trends and eating habits shaping Consumer Foodservice in Canada?
- How is the Consumer Foodservice industry adapting to a post-COVID-19 market environment? Where are the opportunities amidst the challenges?
- How significant are health considerations in shaping the future of Consumer Foodservice in Canada? Which of these trends hold the greatest potential demand?
- Where is future growth expected to be most dynamic?
Consumer Foodservice in Canada
Consumer foodservice in 2024: The big picture
2024 key trends
Competitive landscape
Independent foodservice developments
What next for consumer foodservice?
DISCLAIMER
Cafés/Bars in Canada
KEY DATA FINDINGS
Cap on alcohol tax duty easing financial pressures on bars
Customisation enhancing consumer experience and driving sales but challenging operational efficiency
Lower transaction values and profit margins despite improving economic conditions
Expansion of retail distribution channels for alcoholic beverages may reduce demand for bars and pubs
Health-conscious and non-alcoholic drinks shaping future demand
Innovation in technology and social media engagement driving efficiency and sales
Full-Service Restaurants in Canada
KEY DATA FINDINGS
Rising costs and market competition squeezing sales volume and profit
Augmented intelligence tools improving efficiency and maximising sales
Loyalty programmes evolving to boost customer retention and sales
Plans to reduce immigration from 2025–2027 may intensify labour shortages in the full-service restaurant industry
Solo dining trend presenting a lucrative opportunity for restaurants
Quality rather than low prices will shape competition in the full-service restaurant sector
Limited-Service Restaurants in Canada
KEY DATA FINDINGS
Weak sales and CEBA loan repayment deadlines reducing profitability
Greater emphasis on delivery services to drive revenue and mitigate operational challenges
Expansion of menus and focus on high-quality ingredients to meet consumer demand for healthier options
Lower inflation and interest rate cuts expected to boost demand
Adoption of automation and AI to enhance efficiency and reduce costs
Increased market entry for independent restaurants as lending criteria ease
Self-Service Cafeterias in Canada
KEY DATA FINDINGS
Lower prices attracting clients and boosting traffic
IKEA continues to dominate the channel, holding over 25% of total share
Lack of online ordering limiting growth potential
Focusing on food quality should be the priority
Alcoholic beverages as a new revenue stream to increase profitability
Sustainability as a key factor for more conscious consumers
Street Stalls/Kiosks in Canada
KEY DATA FINDINGS
Independent outlets leading the market and targeting residential neighbourhoods
Excessive regulations limiting market entry and industry growth
Health consciousness fuelling the rise of vegan and vegetarian options
Competition is set to limit growth opportunities
Product innovation driving demand for global and gourmet street food
Gourmet beverages emerging as a key profit driver
Consumer Foodservice By Location in Canada
KEY DATA FINDINGS
Retail operators expand as Canadians demand more in-store shopping experiences
Food halls gaining momentum and attracting customers across Canada
Stand-alone restaurants maintain large market share, but profitability concerns discourage new entries
Recovery of domestic and international tourism boosting sales for travel outlets
High cost of hotels reducing demand for lodging restaurants
Projected low inflation and lower cost of borrowing expected to boost stand-alone restaurant growth
The following categories and subcategories are included:
Consumer Foodservice
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- Chained Consumer Foodservice
- Independent Consumer Foodservice
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- Chained Cafés/Bars
- Independent Cafés/Bars
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- Chained Bars/Pubs
- Independent Bars/Pubs
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- Chained Cafés
- Independent Cafés
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- Chained Juice/Smoothie Bars
- Independent Juice/Smoothie Bars
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- Chained Specialist Coffee and Tea Shops
- Independent Specialist Coffee and Tea Shops
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- Chained Full-Service Restaurants
- Independent Full-Service Restaurants
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- Chained Asian Full-Service Restaurants
- Independent Asian Full-Service Restaurants
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- Chained European Full-Service Restaurants
- Independent European Full-Service Restaurants
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- Chained Latin American Full-Service Restaurants
- Independent Latin American Full-Service Restaurants
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- Chained Middle Eastern Full-Service Restaurants
- Independent Middle Eastern Full-Service Restaurants
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- Chained North American Full-Service Restaurants
- Independent North American Full-Service Restaurants
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- Chained Pizza Full-Service Restaurants
- Independent Pizza Full-Service Restaurants
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- Chained Other Full-Service Restaurants
- Independent Other Full-Service Restaurants
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- Chained Limited-Service Restaurants
- Independent Limited-Service Restaurants
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- Chained Asian Limited-Service Restaurants
- Independent Asian Limited-Service Restaurants
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- Chained Bakery Products Limited-Service Restaurants
- Independent Bakery Products Limited-Service Restaurants
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- Chained Burger Limited-Service Restaurants
- Independent Burger Limited-Service Restaurants
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- Chained Chicken Limited-Service Restaurants
- Independent Chicken Limited-Service Restaurants
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- Chained Convenience Stores Limited-Service Restaurants
- Independent Convenience Stores Limited-Service Restaurants
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- Chained Fish Limited-Service Restaurants
- Independent Fish Limited-Service Restaurants
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- Chained Ice Cream Limited-Service Restaurants
- Independent Ice Cream Limited-Service Restaurants
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- Chained Latin American Limited-Service Restaurants
- Independent Latin American Limited-Service Restaurants
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- Chained Middle Eastern Limited-Service Restaurants
- Independent Middle Eastern Limited-Service Restaurants
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- Chained Pizza Limited-Service Restaurants
- Independent Pizza Limited-Service Restaurants
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- Chained Other Limited-Service Restaurants
- Independent Other Limited-Service Restaurants
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- Chained Self-Service Cafeterias
- Independent Self-Service Cafeterias
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- Chained Street Stalls/Kiosks
- Independent Street Stalls/Kiosks
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- Consumer Foodservice Through Standalone
- Consumer Foodservice Through Leisure
- Consumer Foodservice Through Retail
- Consumer Foodservice Through Lodging
- Consumer Foodservice Through Travel
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- Takeaway Online Ordering
- Takeaway Offline Ordering
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- First-Party Delivery Services
- Third-Party Delivery Services
- Delivery Offline Ordering
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- Drive-Through
- Eat-In
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- Takeaway Online Ordering
- Delivery Online Ordering
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- Takeaway Offline Ordering
- Delivery Offline Ordering
- Drive-Through
- Eat-in
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Consumer Foodservice
Consumer foodservice is composed of cafés/bars, full-service restaurants, limited-service restaurants, self-service cafeterias and street stalls/kiosks.
See all of our definitionsWhy buy this report?
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This report originates from Passport, our Consumer Foodservice research and analysis database.
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