Market Trends of canada foodservice Industry
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.
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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.
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