Healthy growth predicted for restaurant revenue
April 16, 2015 By Bakers Journal
April 16, 2014, Toronto — Canadian consumers continue to spend more and more at chain and branded restaurants, according to GE Capital’s annual Canadian Chain Restaurant Industry Review, an extensive research report on the state of chain foodservice in the country.
The report’s findings will be premiered at the sixth annual Canadian Restaurant Investment Summit May 5-6 in Toronto. See below for details.
Foodservice industry sales are expected to increase 4 percent to $59.8 billion in 2015. Diners spent more than $57.5 billion at commercial foodservice establishments in 2014, an increase of 4.9 percent over 2013 and equal to approximately 4 percent of the national gross domestic product.
Ontario and Quebec have the largest commercial foodservice sales at $22.2 billion and $10.5 billion, respectively, driven primarily by their larger populations. Per capita, Alberta has the largest commercial foodservice sales ($2,137), followed by British Columbia ($1,920). Quebec has the lowest commercial foodservice sales per capita ($1,278).
Nearly two-thirds (63.2 percent) of restaurant expenditures take place at chains, which include local, regional, national or international businesses. Those in Atlantic Canada spend the most at chain restaurants – 70 percent. Quebec has the greatest percentage of independent restaurant expenditures – 44.6 percent in 2014, down from 48.4 percent in 2013.
Highlights of Canadian Chain Restaurant Industry Review
The fourth annual Canadian Chain Restaurant Industry Review, a comprehensive analysis of the state of foodservice companies, will be premiered at the Canadian Restaurant Investment Summit. It includes the annual C-Suite Survey, conducted by fsSTRATEGY and NPD Group Canada.
The greatest opportunity in the foodservice industry today, according to C-Suite Survey participants, is menu innovation and refinement, followed by concept refinement.
“Foodservice industry leaders recognize the need to be dynamic in response to the ever more sophisticated consumer, with more choices, more customization, more segmented or targeted positioning, healthier options and better-quality ingredients and flavors,” said Edward Khediguian, senior vice president of GE Capital’s Franchise Finance business in Canada.
“In addition, there’s an awareness of the reduction in the span of concept and segment life cycles. They see the value of trying new concepts, such as fast casual or premium options, to take advantage of the ongoing trend toward eating meals away from home.”
Similar to 2014, operating costs continue to be the single greatest challenge for survey participants. However, in 2015, cost of goods sold was mentioned as a challenge by more respondents. The rising cost of proteins was cited frequently, as well. Labour costs and productivity were mentioned at the same frequency as in 2014.
Canadian Restaurant Investment Summit
Now in its sixth year, the Canadian Restaurant Investment Summit has solidly established itself as the annual business conference that brings the industry into focus.
Operators, chain executives, franchise operators, investors, lenders and key suppliers from across the country agree that this is the event that delivers what they need-insight,information and opportunity-all with meaningful content and a tight focus that is uniquely Canadian.
Register now with the promo code “GECAPITAL” and save $100.
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