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Industry Forecast
2022-2026
Executive Quick-service restaurants were the first segment
to return back to pre-pandemic levels with a 3.1%
Summary
increase in sales in Q3 2021 over Q3 2019. While the
Omicron variant will restrain foodservice sales in Q1
2022, a rebound in spending beginning in Q2 2022
Highlights: will continue throughout the remainder of the year.
As a result, annual foodservice sales will continue
their current trajectory, rising to $35.0 billion. This
$73.2
represents a 3.7% increase above pre-pandemic levels.
billion
variant is expected to delay the segment’s return to
pre-pandemic levels until the third quarter of 2022.
Overall, total foodservice sales in 2022 are expected
to grow to $31.2 billion, an 18.4% increase over 2021.
Annual commercial foodservice sales In 2023, annual sales at full-service restaurants are
are forecast to increase to $73.2 forecast to surpass its pre-pandemic levels.
billion in 2022. While this represents a
12.4% increase over 2021, sales would Caterer revenues will struggle in Q1 2022 due to
remain 5% below pre-pandemic levels. the impact of the Omicron variant. A decline in the
number of COVID-19 cases will help boost caterer
revenues across a number of sub-segments. As a
While the Omicron variant will result, annual caterer revenues are forecast to advance
continue to disrupt consumer to nearly $5 billion in 2022, a 29.3% increase over 2021.
spending at restaurants in Q1 2022, In 2023, caterers are forecast to improve sharply,
the downturn is expected to be short with sales to $6.4 billion – 1.8% above 2019 levels.
lived. As the number of cases declines
and on-premise dining restrictions are While the Omicron variant will restrain drinking
lifted, sales are expected to improve place sales in Q1 2022, annual sales are forecast to
in Q2, gaining momentum throughout expand to $2 billion in 2022 – a 34.2% increase over
the remainder of the year. 2021. Looking ahead, pent-up consumer demand
and accumulated household savings are expected
to boost drinking place sales to $2.6 billion in 2023,
A return in consumer confidence, which will be just 2.6% below 2019 levels. In 2024,
business dining and tourists will help sales are forecast to return to pre-pandemic levels
Canada’s foodservice industry return to for the first time.
pre-pandemic levels in 2023, with annual
sales forecast to rise to $83.3 billion. Menu prices in Canada are forecast to increase by 5.2%
in 2022 following a projected 3.3% increase in 2021.
By 2026, commercial foodservice In Quebec, sharply lower sales at full-service
sales are projected to increase to restaurants and drinking places during the
more than $97.5 billion due to a lockdown is forecast to restrain annual foodservice
rebound in spending by consumers, sales to $14 billion in 2022. Pent-up consumer
businesses and tourists. demand and an increase in the number of tourists
is forecast to boost foodservice sales in Quebec to
a record $16 billion in 2023. This would represent
an 8.0% increase above 2019 levels.
The Omicron variant will lead to a short-term drop in foodservice spending in Alberta, which will restrain annual
foodservice sales to $9.4 billion in 2022. A much stronger rebound at full-service restaurants, caterers and
drinking places will boost commercial foodservice sales in Alberta to a record $10.7 billion in 2023. This will be
the first time Alberta surpasses the $10 billion mark in annual sales.
While the Omicron variant will stall the recovery in British Columbia’s foodservice industry in the first quarter, an
expected rebound in consumer spending is forecast to boost annual sales in 2022 to $12.9 billion. A continued
recovery in consumer spending, a strong economy and increased tourism is expected to boost foodservice
sales to a record $14.3 billion in 2023.
Quick-service Restaurants 4.4% -14.3% 15.6% 4.7% 7.2% 7.4% 3.9% 3.5%
Full-service Restaurants 4.8% -37.2% 22.3% 18.4% 18.0% 10.0% 3.9% 3.6%
Drinking Places -3.1% -48.0% 8.7% 34.2% 28.4% 4.1% 1.6% 1.7%
Total Sales 4.4% -28.4% 18.1% 12.4% 13.9% 8.7% 3.9% 3.6%
$83.3
$80
$77.0
$73.8 $73.2
$70 $70.4
$66.9 $65.1
$62.8
$60
$59.4
$56.4
$54.0 $55.1
$50
$40
‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21p ‘22f ‘23f ‘24f ‘25f ‘26f
Source: Restaurants Canada and Statistics Canada
$77.0
$73.2
$65.1
$55.1
Restaurants
Year-over-year nominal
change in commercial Annual change
foodservice sales compared to 2019
2019 4.4% --
2020 -14.3% -14.3%
Thanks to its reliance on off-premise dining, 2021p 15.6% -0.9%
quick-service restaurants weathered the 2022f 4.7% 3.7%
pandemic better than other commercial 2023f 7.2% 11.2%
2024f 7.4% 19.4%
foodservice segments. As a result, quick-
2025f 3.9% 24.1%
service restaurants were the first segment to
2026f 3.5% 28.4%
return back to pre-pandemic levels with a 3.1%
increase in sales in Q3 2021 over Q3 2019.
Quarterly Quick-service Restaurant Sales - Canada
Looking back, quick-service restaurant sales in (seasonally adjusted, in billion of dollars)
2021 were projected to rise to $33.4 billion, a solid
15.6% increase over 2020, but, due to the weak FORECAST
first half of the year, still 0.9% below 2019 levels. $9.1
$9.0
$8.8 $8.7
$8.5 $8.6
Quick-service restaurants are forecast to experience $8.1 $8.2
$7.7 $7.7
a modest dip due to the impact of the Omicron $7.6
$7.5
represents a 3.7% increase above pre-pandemic Source: Statistics Canada and Restaurants Canada
levels.
Over the long term, convenience and value Quick-service Restaurants Sales
will remain the main drivers of quick-service (in billions)
restaurant sales, which are forecast to grow to
FORECAST
$43.3 billion by 2026.
$ 43.3
$ 41.9
$ 40.3
$ 37.5
$ 35.0
$ 33.7
$ 33.4
$ 28.9
Restaurants
Year-over-year nominal
change in commercial Annual change
foodservice sales compared to 2019
2019 4.8% --
2020 -37.2% -37.2%
After a sharp improvement in sales at full- 2021p 22.3% -23.2%
service restaurants in the third quarter of 2021, 2022f 18.4% -9.1%
the Omicron variant is expected to delay the 2023f 18.0% 7.2%
segment’s return to pre-pandemic levels until 2024f 10.0% 18.0%
2025f 3.9% 22.5%
the third quarter of 2022.
2026f 3.6% 26.9%
Year-over-year nominal
change in commercial Annual change
Caterers were among the hardest-hit segments foodservice sales compared to 2019
in 2020. Annual foodservice sales fell to $3.3
2019 6.0% --
billion, representing a staggering 47.8% decline 2020 -47.8% -47.8%
compared to 2019. The steep drop was the 2021p 16.5% -39.2%
result of broad-based revenue declines across 2022f 29.3% -21.4%
a number of sub-segments within the caterer 2023f 29.4% 1.8%
category, including education, remote camps, 2024f 11.0% 13.0%
business dining, healthcare and transportation, 2025f 4.6% 18.1%
along with the cancellation of many social 2026f 5.3% 24.4%
caterer events (e.g. weddings).
$ 3.8
$ 3.3
Year-over-year nominal
Similar to full-service restaurants, drinking places change in commercial Annual change
have experienced a very uneven recovery since the foodservice sales compared to 2019
boost drinking place sales to $2.6 billion in 2023, Source: Statistics Canada and Restaurants Canada
which will be just 2.6% below 2019 levels. In 2024,
sales are forecast to return to pre-pandemic levels
for the first time.
Drinking Place Sales
(in billions)
Over the long term, however, unit closures,
changing drinking patterns and an aging FORECAST
$ 1.4
Although the Omicron variant will restrain sales in Newfoundland & Labrador
the first quarter of 2022, a steady improvement in
economic conditions and tourism is forecast to Year-over-year nominal
Annual change
boost annual foodservice sales up to $849.2 million change in commercial
compared to 2019
in 2022. foodservice sales
2019 1.6% --
In the five years prior to the pandemic, 2020 -19.1% -19.1%
2021p 18.7% -4.0%
Newfoundland and Labrador lagged behind the rest
2022f 4.5% 0.3%
of the country with the slowest growth in economic
2023f 3.5% 3.0%
activity and retail sales. As a result, annual 2024f 3.1% 6.2%
foodservice sales grew by an average of just 1.3% 2025f 3.0% 9.4%
between 2015 and 2019, compared to the national 2026f 2.9% 12.5%
average of 5.3%.
FORECAST
Real Gross Domestic Product (GDP) Retail Sales
$953
$926
10% FORECAST
$899
$872
$849 8%
$847
$813
6%
$685
4%
2%
0%
-2%
-4%
-6%
2019 2020 2021p 2022f 2023f 2024f 2025f 2026f 2018 2019 2020 2021 2022 2023 2024 2025 2026
Source: Statistics Canada and Restaurants Canada Source: Statistics Canada and Conference Board of Canada
FORECAST
Real Gross Domestic Product (GDP) Retail Sales
$399
$385
$359 16%
$343 FORECAST
$329
$316
$313 12%
$249
8%
4%
0%
-4%
2018 2019 2020 2021 2022 2023 2024 2025 2026
2019 2020 2021p 2022f 2023f 2024f 2025f 2026f
Source: Statistics Canada and Restaurants Canada Source: Statistics Canada and Conference Board of Canada
$1.3 8%
6%
4%
2%
0%
-2%
-4%
-6%
2019 2020 2021p 2022f 2023f 2024f 2025f 2026f 2018 2019 2020 2021 2022 2023 2024 2025 2026
Source: Statistics Canada and Restaurants Canada Source: Statistics Canada and Conference Board of Canada
FORECAST
$1.6 Real Gross Domestic Product (GDP) Retail Sales
$1.5
$1.5
$1.4 FORECAST
$1.3 12%
$1.2
$1.2
10%
$1.0 8%
6%
4%
2%
0%
-2%
-4%
-6%
2018 2019 2020 2021 2022 2023 2024 2025 2026
2019 2020 2021p 2022f 2023f 2024f 2025f 2026f
Source: Statistics Canada and Restaurants Canada Source: Statistics Canada and Conference Board of Canada
FORECAST
$18.8 Real Gross Domestic Product (GDP) Retail Sales
$18.2
$17.5
$16.1
12%
$14.9 FORECAST
$14.0 10%
$12.3 8%
6%
$10.2
4%
2%
0%
-2%
-4%
-6%
2018 2019 2020 2021 2022 2023 2024 2025 2026
2019 2020 2021p 2022f 2023f 2024f 2025f 2026f
Source: Statistics Canada and Restaurants Canada Source: Statistics Canada and Conference Board of Canada
FORECAST
2%
0%
-2%
-4%
-6%
2019 2020 2021p 2022f 2023f 2024f 2025f 2026f 2018 2019 2020 2021 2022 2023 2024 2025 2026
Source: Statistics Canada and Restaurants Canada Source: Statistics Canada and Conference Board of Canada
FORECAST
6%
4%
2%
0%
-2%
-4%
2019 2020 2021p 2022f 2023f 2024f 2025f 2026f 2018 2019 2020 2021 2022 2023 2024 2025 2026
Source: Statistics Canada and Restaurants Canada Source: Statistics Canada and Conference Board of Canada
FORECAST
$2.4 Real Gross Domestic Product (GDP) Retail Sales
$2.3
$2.3
$2.1 10%
FORECAST
$1.9
$1.9 $1.9 8%
6%
$1.6
4%
2%
0%
-2%
-4%
-6%
2019 2020 2021p 2022f 2023f 2024f 2025f 2026f 2018 2019 2020 2021 2022 2023 2024 2025 2026
Source: Statistics Canada and Restaurants Canada Source: Statistics Canada and Conference Board of Canada
FORECAST
$12.5
Real Gross Domestic Product (GDP) Retail Sales
$12.1 14%
$11.6
$10.7 FORECAST
12%
$9.9 10%
$9.4
$8.4 8%
$7.5 6%
4%
2%
0%
-2%
-4%
-6%
-8%
2018 2019 2020 2021 2022 2023 2024 2025 2026
2019 2020 2021p 2022f 2023f 2024f 2025f 2026f
Source: Statistics Canada and Restaurants Canada Source: Statistics Canada and Conference Board of Canada
$9.8 6%
4%
2%
0%
-2%
-4%
-6%
2018 2019 2020 2021 2022 2023 2024 2025 2026
2019 2020 2021p 2022f 2023f 2024f 2025f 2026f
Source: Statistics Canada and Restaurants Canada Source: Statistics Canada and Conference Board of Canada
Quick-service Restaurants $33,734.8 $28,902.4 $33,419.5 $34,999.4 $37,529.5 $40,288.2 $41,857.7 $43,316.6
% change 4.4% -14.3% 15.6% 4.7% 7.2% 7.4% 3.9% 3.5% 5.3%
Drinking Places $2,694.3 $1,401.0 $1,523.6 $2,044.4 $2,624.2 $2,731.9 $2,776.8 $2,822.9
-3.1% -48.0% 8.7% 34.2% 28.4% 4.1% 1.6% 1.7% 14.0%
Real Sales (in 2002$) $49,207.2 $34,466.1 $39,408.5 $42,104.3 $46,647.8 $49,420.6 $50,224.4 $50,877.0
1.7% -30.0% 14.3% 6.8% 10.8% 5.9% 1.6% 1.3% 5.3%
p - preliminary; f - forecast
2019.1 2019.2 2019.3 2019.4 2020.1 2020.2 2020.3 2020.4 2021.1 2021.2 2021.3 2021.4 2022.1 2022.2 2022.3 2022.4
Quick-service Restaurants $7,487.0 $8,655.5 $9,054.6 $8,537.8 $6,996.3 $6,227.3 $8,118.9 $7,559.9 $6,961.0 $8,389.2 $9,331.3 $8,738.0 $7,424.3 $8,922.6 $9,542.5 $9,110.0
year-over-year change 4.6% 4.9% 4.0% 4.2% -6.6% -28.1% -10.3% -11.5% -0.5% 34.7% 14.9% 15.6% 6.7% 6.4% 2.3% 4.3%
change in sales relative to 2019 -7% -3% 3% 2% -1% 3% 5% 7%
Full-service Restaurants $7,586.2 $8,718.9 $9,325.1 $8,659.5 $6,531.5 $3,241.3 $6,733.4 $5,018.5 $4,512.8 $5,220.2 $8,919.4 $7,672.1 $5,174.4 $8,021.4 $9,558.2 $8,417.0
year-over-year change 5.3% 5.3% 4.3% 4.5% -13.9% -62.8% -27.8% -42.0% -30.9% 61.1% 32.5% 52.9% 14.7% 53.7% 7.2% 9.7%
change in sales relative to 2019 -41% -40% -4% -11% -32% -8% 3% -3%
Caterers $1,394.1 $1,577.8 $1,600.3 $1,734.8 $1,288.0 $510.7 $710.8 $782.3 $732.0 $810.6 $1,109.5 $1,184.2 $826.5 $1,196.0 $1,341.0 $1,596.0
year-over-year change 5.9% 6.1% 6.0% 6.1% -7.6% -67.6% -55.6% -54.9% -43.2% 58.7% 56.1% 51.4% 12.9% 47.5% 20.9% 34.8%
change in sales relative to 2019 -47% -49% -31% -32% -41% -24% -16% -8%
Drinking Places $623.5 $695.2 $714.9 $660.7 $493.6 $173.3 $444.8 $289.4 $222.6 $291.5 $562.0 $447.5 $310.4 $542.2 $643.4 $548.4
year-over-year change -1.0% -1.7% -4.3% -5.2% -20.8% -75.1% -37.8% -56.2% -54.9% 68.2% 26.4% 54.6% 39.4% 86.0% 14.5% 22.5%
change in sales relative to 2019 -64% -58% -21% -32% -50% -22% -10% -17%
Total Sales $17,090.8 $19,647.3 $20,694.8 $19,592.8 $15,309.4 $10,152.6 $16,007.8 $13,650.1 $12,428.4 $14,711.5 $19,922.1 $18,041.8 $13,735.5 $18,682.2 $21,085.2 $19,671.4
year-over-year change 4.8% 4.9% 4.0% 4.1% -10.4% -48.3% -22.6% -30.3% -18.8% 44.9% 24.5% 32.2% 10.5% 27.0% 5.8% 9.0%
change in sales relative to 2019 -27% -25% -4% -7.9% -20% -5% 2% 0%
NOTE: 1. Shaded areas represent forecast periods. All percentage changes are period-over-period.
Newfoundland & $846.6 $684.6 $812.9 $849.2 $871.8 $898.9 $925.8 $952.7
3.4%
Labrador 1.6% -19.1% 18.7% 4.5% 3.5% 3.1% 3.0% 2.9%
Newfoundland &
-19.1% -4.0% 0.3% 3.0% 6.2% 9.4% 12.5%
Labrador
Gold
Silver
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