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Canada Foodservice - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts 2017 - 2029

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  • 231 Pages
  • February 2024
  • Region: Canada
  • Mordor Intelligence
  • ID: 4771913
The Canada Foodservice Market size is estimated at 114.29 billion USD in 2024, and is expected to reach 261.09 billion USD by 2029, growing at a CAGR of 17.96% during the forecast period (2024-2029).

Increase in number of QSRs and street food vendors owing to the rise in popularity of on-the-go meals

  • Quick-service restaurants comprised the largest segment in Canada in 2022. The market registered a CAGR of 7.21% during the study period. The market expansion can be attributed to the continuous increase in the preference for fast food and eating-out habits after the pandemic. In 2021, 16% of Canadians ate out every day, and up to 40% ate breakfast on the go. There has also been an increase in the number of street vendors and unorganized QSR outlets in the country. The street vendors market in Canada was worth USD 254 million in 2022, representing less than 1% of the total QSR market.
  • The quick-service restaurant market is anticipated to be the fastest-growing segment in the coming years, registering a CAGR of 18.37% by value during the forecast period. This development will be supported by a wave of entrepreneurship and new SMEs expected to launch soon. In 2022, 3.7% of Canadians were interested in opening their own QSR outlets. Around 28.3% of Canadians have worked in the food industry at some point. The food truck segment benefitted the most from this trend as it continued to be fragmented over the years. In 2022, no food truck companies in Canada had more than 5% market share.
  • The cloud kitchen market in Canada is expected to register a CAGR of 17.42% by value during the forecast period, owing to rising online food deliveries through smartphone applications, which is an integral stakeholder in the market for cloud kitchens. Online food delivery grew at a Y-o-Y rate of 7.7% by value in 2022. However, the high commission fees charged by delivery platforms constitute a significant restraint to the market's growth. These platforms are known to charge up to 30% of the order value in Canada.

Canada Foodservice Market Trends

Toronto takes the lead: 758 QSR stores make it the hub of quick service restaurants

  • Quick-service restaurant outlets are the most in number; they are expected to register a CAGR of 5.77% over the forecast period. The QSR chains in Canada have been growing despite changing consumer tastes and increasing internal competition. International demand and globalization opportunities allow large-scale operators to expand their footprint into new markets. Toronto is the city with the most QSR outlets in Canada, with 758 stores.
  • The expansion of the cloud kitchen market is being driven by the increase in demand for online meal delivery, a desire for international cuisine, and the adoption of tech-savvy ordering systems. Around 49.4% of Canadians have been ordering food online at least once a week after the pandemic. AI is being used to optimize kitchen operations and provide personalized recommendations to customers. Thus, cloud kitchen outlets are expected to register a CAGR of 6.25% over the forecast period.
  • FSR outlets are the third fastest-growing in the country, and they are expected to register a CAGR of 5.60% over the forecast period. Canada is a multicultural country, reflected in the international cuisines offered from coast to coast. The immigrant population is also younger than the aging non-immigrant population. In 2021, there were 8.3 million immigrants in Canada. Such factors influence long-term dining trends across the country. British, Thai, Mexican, Middle Eastern, and Lebanese are among the most trending international cuisines in Canada. Therefore, the huge demand for international cuisine enables large-scale, full-service operators to expand their business across the country.

Consumer behavior and demand for burgers, sandwiches, and pizza drive the market in Canada

  • The average order value in cloud kitchens was USD 13.72 in 2022. The expansion of the cloud kitchen market is being driven by an increase in demand for online meal delivery. Canadians spent an average of USD 32 per order on a food delivery service in 2022. Online meal ordering and delivery services grew in popularity after the pandemic. Popular dishes offered by cloud kitchens in Canada are burgers, chicken popcorn/strips, wraps, and Acai bowls priced at USD 9, USD 7.50, USD 5, and USD 10 per serving respectively in 2022.
  • The Canadian food industry has evolved and changed to meet customer demands and consumer behavior. Fast food accounted for around 6.3% of Canadians' daily food intake in 2021. Due to the flavors and ingredients used in the products, burgers/sandwiches have been the most popular fast food among consumers. The vast availability of burger options, including products with protein options such as venison, beef, and several others, can be attributed to the growing demand for burgers/sandwiches. Additionally, pizza/pasta is the most popular fast food in Canada, owing to increased consumer demand for taste and preferences, with pizza being the most popular takeout and delivery option. In Canada, the average price of burgers, sandwiches, and pizza is USD 9, USD 9, and USD 14 per serving respectively in 2022.
  • Indian cuisine is the most recent inclusion in the culinary scene of Canada. The Indian food in Canada is characterized mainly by the Northern Indian approach to cuisine, featuring tasty curries and bread. Canada has a large population, about 2.4 million, of the Indian diaspora. A wide range of FSR outlets offer Indian cuisines in the country; the price of Indian curries was USD 13 per plate in 2022.

Canada Foodservice Industry Overview

The Canada Foodservice Market is fragmented, with the top five companies occupying 7.91%. The major players in this market are Doctor's Associates, Inc., Inspire Brands Inc., McDonald's Corporation, RECIPE Unlimited Corporation and Yum! Brands Inc. (sorted alphabetically).

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support

Table of Contents

3.1 Study Assumptions & Market Definition
3.2 Scope of the Study?
3.3 Research Methodology
4.1 Number Of Outlets
4.2 Average Order Value
4.3 Regulatory Framework
4.3.1 Canada
4.4 Menu Analysis
5 MARKET SEGMENTATION (includes market size in Value in USD, Forecasts up to 2029 and analysis of growth prospects)
5.1 Foodservice Type
5.1.1 Cafes & Bars By Cuisine Bars & Pubs Cafes Juice/Smoothie/Desserts Bars Specialist Coffee & Tea Shops
5.1.2 Cloud Kitchen
5.1.3 Full Service Restaurants By Cuisine Asian European Latin American Middle Eastern North American Other FSR Cuisines
5.1.4 Quick Service Restaurants By Cuisine Bakeries Burger Ice Cream Meat-based Cuisines Pizza Other QSR Cuisines
5.2 Outlet
5.2.1 Chained Outlets
5.2.2 Independent Outlets
5.3 Location
5.3.1 Leisure
5.3.2 Lodging
5.3.3 Retail
5.3.4 Standalone
5.3.5 Travel
6.1 Key Strategic Moves
6.2 Market Share Analysis
6.3 Company Landscape
6.4 Company Profiles (includes Global Level Overview, Market Level Overview, Core Business Segments, Financials, Headcount, Key Information, Market Rank, Market Share, Products and Services, and Analysis of Recent Developments).
6.4.1 A & W Food Services of Canada Inc.
6.4.2 Boston Pizza International Inc.
6.4.3 Doctor's Associates, Inc.
6.4.4 Domino's Pizza Inc.
6.4.5 Inspire Brands Inc.
6.4.6 International Dairy Queen Inc.
6.4.7 McDonald's Corporation
6.4.8 MTY Food Group Inc.
6.4.9 Northland Properties Corporation
6.4.10 Papa John's International Inc.
6.4.11 RECIPE Unlimited Corporation
6.4.12 Restaurant Brands International Inc.
6.4.13 Seven & I Holdings Co. Ltd
6.4.14 Starbucks Corporation
6.4.15 The Wendy's Company
6.4.16 Yum! Brands Inc.
8.1 Global Overview
8.1.1 Overview
8.1.2 Porter’s Five Forces Framework
8.1.3 Global Value Chain Analysis
8.1.4 Market Dynamics (DROs)
8.2 Sources & References
8.3 List of Tables & Figures
8.4 Primary Insights
8.5 Data Pack
8.6 Glossary of Terms

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • A & W Food Services of Canada Inc.
  • Boston Pizza International Inc.
  • Doctor's Associates, Inc.
  • Domino's Pizza Inc.
  • Inspire Brands Inc.
  • International Dairy Queen Inc.
  • McDonald's Corporation
  • MTY Food Group Inc.
  • Northland Properties Corporation
  • Papa John's International Inc.
  • RECIPE Unlimited Corporation
  • Restaurant Brands International Inc.
  • Seven & I Holdings Co. Ltd
  • Starbucks Corporation
  • The Wendy's Company
  • Yum! Brands Inc.