Food Services Franchise Opportunities

Trends and Facts About Food Franchises

The Canadian food industry is thriving on the basis that eating out is a popular past time. The restaurant industry continues to grow. According to a household survey from CREST/NPD Group, consumer spending in restaurants rose 2% in 2016.

“Unlike U.S. consumers, Canadians continue to include eating at restaurants as part of their lifestyle,” says Robert Carter, Senior Manager, NPD.  "It would appear the convenience of restaurant meals is not a cut back consumers are willing to make."

The growth consists of 1% increase in numbers of visits and a 2% increase in the average spending in restaurants. Food retail is the leader at a 15% growth in traffic and spending. In addition, quick service brands are leading the restaurant sector with a reported 2% growth in spending, as Canadian diners begin seeking out affordable but healthy meals. 

Quick service restaurants are the fastest growing restaurant industry in Canada. According to IBISWorld, Canadian quick service restaurants have seen an annual growth of 2.8% over the past five years, while Canadian full service restaurants have experienced a 1.4% growth for the same period.

In Canada, there are more than 184,000 foodservice operators nationwide. This is broken down to:

  • 84,000 full-service restaurants

  • 50,000 food retailers

  • 5,000 drinking places
     

Major segments of food franchises include bakery franchises, coffee franchise, ice cream and frozen yogurt franchises, health food franchises, pizza franchises, and vending machine franchises. Tim Hortons remains Canada's leading restaurant franchise both in terms of sales and in terms of size. The coffee giant is followed by McDonald's and Subway.