Canada - The Future of Foodservice to 2021

  • ID: 4334388
  • Report
  • Region: Canada
  • 148 pages
  • GlobalData
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FEATURED COMPANIES

  • A&W
  • Chairman's Brands
  • Freshii
  • Mandarin Restaurants
  • Montana’s BBQ & Bar
  • Pizza Hut
  • MORE
Canada - The Future of Foodservice to 2021

Summary

Canadian economy was not as hard-hit by the 2008 global financial crisis as the neighbouring United States. In fact, as early as 2011, Statistics Canada stated that Canada was the only G7 nation to have recouped its losses from the recession. However, despite promising YoY GDP per capita growth between 2010 and 2014, financial analysts are asserting that Canadians’ standard of living is currently declining, driven by the oil-price collapse and low commodity prices, weak income growth, high household debt and volatile exchange rates over the last two years.

Sales value in Canada’s foodservice profit sector rose at a strong CAGR of 3.1% from 2014-2016. This growth is forecast to continue to 2021, at a CAGR of 3.4%. Between 2014 and 2016, growth in all channels was driven to a greater extent by rising transactions numbers, as outlet growth remained weak or stagnant.

Sales value in the Canadian Quick Service Restaurants (QSR) channel rose at a strong CAGR of 4.7% between 2014 and 2016, with growth forecast to accelerate to 2021 at a sector-leading CAGR of 5.1%. Despite steadily falling unemployment rates and, on average, high levels of disposable income, the many challenges currently facing Canada’s economy are resulting in lowered financial confidence among many consumers, who are increasingly trading down from Full Service Restaurants (FSR) to the more affordable QSR channel.

Value growth in FSR is set to expand marginally from a CAGR of 2.7% between 2014 and 2016 to 3.0% to 2021, with total channel revenue set to reach CAD30.7 Billion. Overall channel growth will continue to be driven primarily by rising transaction numbers and average transaction prices, which are both forecast to increase at a CAGR of 1.5% over the next six years. Consistently with the overall profit sector, outlet growth will remain weak and static, as operators optimize revenue generation from existing locations in a mature and saturated market.

With a 13.9% share of Canada’s profit sector foodservice market in 2016, the coffee and tea shop channel is the country’s third largest channel in terms of sales value. From 2014-2016, the channel experienced strong sales value growth, with revenues rising during the three-year period. This growth is only forecast to accelerate marginally to 2021.

The report "Canada - The Future of Foodservice to 2021" provides extensive insight and analysis of Canada's foodservice market over the next five years (2016-2021) and acts as a vital point of reference for operators or suppliers.

In particular, this report provides the following analysis -
  • Overview of Canada’s macro-economic landscape: Detailed analysis of current macro-economic factors and their impact on the South African foodservice market including GDP per capita, consumer price index, population growth and annual household income distribution.
  • Growth dynamics: In-depth data and forecasts of key channels (QSR, FSR, Coffee & Tea Shops, and Pubs, Clubs and Bars) within the Canadian foodservice market, including the value of the market, number of transactions, number of outlets and average transaction price.
  • Customer segmentation: Identify the most important demographic groups, buying habits and motivations that drive out-of-home meal occasions among segments of the Canadian population.
  • Key players: Overview of market leaders within the four major channels including business descriptions and number of outlets.
  • Case Studies: Learn from examples of recent successes and failures within the Canadian foodservice market.
Companies mentioned in this report: A&W, Cara Operations, Chairman's Brands, Country Style, Freshii, KFC, Mandarin Restaurants, McDonald's, Montana’s BBQ & Bar, Moxie’s Grill & Bar, Pizza Hut, Robin's, Second Cup Coffee Co., Starbucks, Subway, Swiss Chalet, The Keg, Tim Hortons, Wendy's, Yum! Brands.

Scope
  • Sales value in the Canadian QSR channel rose at a strong CAGR of 4.7% between 2014 and 2016, with growth forecast to accelerate to 2021 at a sector-leading CAGR of 5.1%. Despite steadily falling unemployment rates and, on average, high levels of disposable income, the many challenges currently facing Canada’s economy are resulting in lowered financial confidence among many consumers, who are increasingly trading down from FSR to the more affordable QSR channel.
  • The coffee & tea shop channel is heavily consolidated, with market leaders Tim Hortons and Starbucks generating a respective 70.9% and 18.2% share of total channel revenue in 2016, while independents merely claimed a 2.2% share of the market. It is becoming increasingly challenging for independent operators to penetrate and thrive in a heavily consolidated and saturated coffee and tea shop market, where Tim Hortons and Starbucks alone represent a 66% share of total outlets and generate nearly 90% of total sales value.
Reasons to Buy
  • Specific forecasts of the Canadians foodservice market over the next five years (2016-2021) will give readers the ability to make informed business decisions through identifying emerging/declining markets.
  • Consumer segmentation detailing the desires of known consumers among all major foodservice channels (QSR, FSR, Coffee & Tea Shops and Pubs, Clubs and Bars) will allow readers understand the wants and needs of their target demographics.
  • Relevant case studies will allow readers to learn from and apply lessons discovered by emerging and major players within the Canadian foodservice market.
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Note: Product cover images may vary from those shown
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FEATURED COMPANIES

  • A&W
  • Chairman's Brands
  • Freshii
  • Mandarin Restaurants
  • Montana’s BBQ & Bar
  • Pizza Hut
  • MORE
Introduction
Report Guide
Executive Summary

Macroeconomic Context
GDP and Consumer Price Index
Population and demographic highlights
Annual household income distribution

Introducing the Consumer Segments
Consumer segment profiles and key identification metrics
Segment engagement overview in four key profit sector channels

Profit Sector Metrics
Key metric highlights
Value share and growth by channel
Outlets and transactions growth by channel
Operator buying volumes and growth by channel
Channel historic and future growth dynamics
Outlet type and type of ownership growth dynamics

Profit Sector by Channel

Quick Service Restaurants (QSR)
Summary and key take-out
Metrics
Key players
Key consumers
Why?
What?
Where?
What next?

Full Service Restaurants (FSR)
Summary and key take-out
Metrics
Key players
Key consumers
Why?
What?
Where?
What next?

Coffee and Tea Shops
Summary and key take-out
Metrics
Key players
Key consumers
Why?
What?
Where?
What next?

Pubs, Clubs and Bars
Summary and key take-out
Metrics
Key Players
Key consumers
Why?
What?
Where?
What next?

Cost Sector Metrics
Cost operator trends - historic and future growth
Data and channel share breakdown

Appendix
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  • A&W
  • Cara Operations
  • Chairman's Brands
  • Country Style
  • Freshii
  • KFC
  • Mandarin Restaurants
  • McDonald's
  • Montana’s BBQ & Bar
  • Moxie’s Grill & Bar
  • Pizza Hut
  • Robin's
  • Second Cup Coffee Co.
  • Starbucks
  • Subway
  • Swiss Chalet
Note: Product cover images may vary from those shown
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Note: Product cover images may vary from those shown
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