Marketplace Statistics say Canadian Foodservices Still Struggling

On an regular bases, this blog will report market place statistics from around the globe relevant to the food industry. This blog looks at the Canadian foodservice industry. Whether if you live in the U.S. or Canada, if you are eating out less, or just barely venturing back into more restaurant meals, you are not alone.
A July 7, 2011 press release from Technomics Inc. reports that the Canada’s top 200 restaurant chains, which account for over $25 billion and nearly 60% of the Canadian commercial restaurant industry’s total sales, experienced a $741 million, or 3 percent increase* in sales in 2010. While that number is better than in 2009, the release notes that the industry is still operating in a difficult economic environment. There was a net addition of only 73 new restaurants, down from 290 net new units in 2009.
Technomic’s Executive Vice President Darren Tristano is quoted as saying “The industry is continuing to grow. But looking at a breakdown within the Top 200 chains we see that just less than half had positive growth, while 86 of the Top 200 chains experienced declining sales.” Technomic teamed with Kostuch Media to release the “Top 200 Canadian Chain Restaurant Report.” Findings include:
• Tim Horton’s continued to lead the Canadian foodservice industry in terms of both sales and units. McDonald’s and Subway both outpaced Tim Horton’s sales growth, but came in second and third respectively in terms of total sales.
• Of the Top 200 chains, 91 experienced growth in 2010. A total of 17 chains grew at a rate greater than 20 percent, 14 grew between 10 and 20 percent, and 60 chains grew between 0 and 9 percent. 23 chains had sales that were flat from 2009 to 2010.
• New entrants into the Top 200 include a broad variety of restaurants. Midscale family style restaurants, limited service, fast casual and traditional casual dining chains are all represented by new entrants into the Top 200.

The Top 200 Canadian Chain Restaurant Report is designed to help operators and suppliers keep abreast of competition, develop sales and marketing strategies, identify growth opportunities, and monitor industry segment performance and menu category results. For more information on this report, click here or for purchasing Details: Jessica Cravero, 312-506-3849, or jcravero@technomic.com. For report details contact Naomi Van Til, 312-506-3844, or nvantil@technomic.com

* To provide context, the Canadian Consumer Price Index rose 1.8 percent from 2009 to 2010.
For the U.S. Foodservice industry, Technomic reports 2010 Retail Sales Equivalent of $529.31 billion, a 0.7% increase over 2009. Technomic further predicts nominal growth of 2.8% for U.S. Foodservice Retail Sales in 2011. (Nominal growth assumes an inflation rate of 1.5% for 2010 and 2.5% for 2011.)

— Claudia O’Donnell, Global Food Forums, a conference and seminar organizer

Posted on:July 17, 2011

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