Full-service restaurants in Canada thrived from the pandemic low, driven mainly by rising levels of consumer spending. However, the unwelcome high inflationary pressure following the pandemic has reduced customers' propensity to dine out as menu inflation surpassed food inflation. As a result, soaring operational costs and lower consumer interest in dining out have suppressed the industry's overall growth. Nonetheless, industry revenue has expanded an annualized 10.8% to $49.5 billion over the past five years, including 2.7% growth in 2025 alone. Likewise, industry profit has improved, accounting for 4.4% of industry revenue. This industry primarily consists of many small, independent, single-location restaurants, making the market quite fragmented. The notable players are franchises that mainly acquire revenue through royalty fees. Over the past five years, full-service restaurants have grappled with soaring costs, especially regarding wages and ingredients. Minimum wages and a restriction on temporary foreign worker supply have driven labor expenses for restaurants, which have already endured staff shortages. In 2025, the US-Canada tariff war is expected to worsen the situation. The tariffs on US-imported produce will force restaurants to work on their current supply chains, such as shifting to source locally and other countries like Mexico. In the outlook period, industry revenue is expected to continue growing, albeit at a slower pace. A decline in household income levels and continued tariff threats will likely drive customers from frequenting full-service restaurants. Consequently, industry revenue is projected to increase at an annualized rate of 1.5%, resulting in $53.5 billion over the five years to 2030.

The Canada Foodservice Market is segmented by Foodservice Type (Cafes & Bars, Cloud Kitchen, Full Service Restaurants, Quick Service Restaurants), by Outlet (Chained Outlets, Independent Outlets) and by Location (Leisure, Lodging, Retail, Standalone, Travel). Market Value in USD is presented. Key data points observed include the number of outlets for each foodservice channel; and, average order value in USD by foodservice channel.

Full-service restaurants refer to sit down establishments where food is served directly to the customer's table. In 2023, the market size of the full service restaurant sector in Canada reached **** billion U.S. dollars, up from the previous year's total of ***** billion U.S. dollars.

The size of the Canadian Restaurant Industry market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 26.40% during the forecast period. The rising popularity of hybrid seeds, government initiatives promoting food security, technological advancements, and increasing consumer demand for convenience are key factors driving this growth. Hybrid seeds offer higher yields, disease resistance, and improved nutritional content compared to traditional varieties. Government initiatives focused on sustainable agriculture and food security are also supporting the growth of the industry. Technological advancements like precision farming techniques and data analytics are enabling farmers to optimize crop production and reduce costs. Recent developments include: December 2022: 7-Eleven announced that it started increasing its footprint in Canada by converting a number of its restaurants into authorized outlets with fine dining seating.December 2022: MTY Food Group Inc., one of its wholly owned subsidiaries, acquired all of the issued and outstanding shares of COP WP Parent Inc. (Wetzel’s Pretzels) from CenterOak Partners. Wetzel’s Pretzels is an American chain of fast-food restaurants specializing in pretzels and hot dogs, operating in the United States, Canada, and Central America.November 2022: 7-Eleven declared the launch of its three new licensed 7-Eleven outlets in Edmonton with a few newly added food items on its menu.. Key drivers for this market are: Increasing Urbanization, Growing Disposable Income. Potential restraints include: High-price and additional delivery charges. Notable trends are: Increase in number of QSRs and street food vendors owing to the rise in popularity of on-the-go meals.

The summary statistics by North American Industry Classification System (NAICS) which include: operating revenue (dollars x 1,000,000), operating expenses (dollars x 1,000,000), salaries wages and benefits (dollars x 1,000,000), and operating profit margin (by percent), of food services and drinking places (NAICS 722), annual, for five years of data.

This statistic shows the sales of the restaurant industry in Canada from 2010 to 2017. In 2017, sales of the Canadian restaurant industry amounted to approximately 85 billion Canadian dollars, up from 68.4 billion the previous year.
Canadian restaurant industry sales - Additional Information Restaurant sales in Canada have grown over the past five years from 61 billion Canadian dollars in 2010 to 85 billion Canadian dollars in 2017. That accumulates to an increase of approximately 24 billion Canadian dollars in the Canadian restaurant industry. As restaurant industry sales have grown in Canada over this period, so have the number of employees in the Canadian restaurant industry. From 2010 to 2017, the number of employees in the restaurant industry have increased from 1.13 million employees in 2010 to 1.2 million employees in 2017.

Restaurant industry sales can be measured in various ways, such as average sales per seat or average sales per square foot. In 2014, quick service restaurants were the most lucrative when measuring sales per seat, with average sales of 12,603 Canadian dollars per seat. Fine dining restaurants ranked second, earning an average of 12,373 Canadian dollars per seat. In 2014 however when looking at sales per square foot, family restaurants had the highest average sales in the Canadian restaurant industry, averaging sales of 1,046 Canadian dollars per square foot, compared to QSR restaurants with an average of 912 Canadian dollars per square foot.

Although quick service restaurants averaged fewer sales per square foot than family restaurants, it is a large market sector in terms of number of restaurants. As of January 2015, Canada had the most Starbucks stores per million people in the world with over 41 Starbucks stores per million people. In the same year, Canada also had the most Subway stores per million people and the second most McDonald’s restaurants per million people with 88.9 stores and 40.6 restaurants and per million people, respectively.

The Canadian restaurant industry, a dynamic and competitive landscape, is experiencing significant growth driven by evolving consumer preferences and technological advancements. The market's size and CAGR (Compound Annual Growth Rate) are not explicitly provided, but based on general industry knowledge and trends, we can infer substantial expansion. Factors like increasing disposable incomes, a burgeoning tourism sector, and the popularity of diverse culinary experiences contribute to this growth. The foodservice segment shows strong performance across various types—Quick Service Restaurants (QSRs) like burger chains and pizzerias continue to thrive, alongside the increasing popularity of cafes and bars, reflecting changing consumer demand for convenient and experiential dining. The full-service restaurant segment (FSR), encompassing diverse cuisines, also shows robust growth, though perhaps at a slightly slower pace than QSRs due to higher price points. The rise of cloud kitchens is another pivotal trend, offering efficient delivery options and catering to the growing demand for home-delivered meals. However, challenges remain. Rising operating costs, including labor and food prices, pose significant restraints on profitability. Furthermore, increasing competition, especially from both established and emerging restaurant chains, necessitates constant innovation and adaptation. The industry is also grappling with the ongoing impact of the pandemic, necessitating strategies to adapt to shifting consumer behaviors and maintaining operational efficiency. Successful players are focusing on enhancing customer experience through technology integration, brand loyalty programs, and menu diversification. Geographical distribution showcases a higher concentration in urban centers, although expansion into suburban and rural areas is ongoing. Analyzing the various segments, we observe a substantial contribution from chained outlets due to their established brand recognition and economies of scale. Independent outlets, while facing challenges in competing with large chains, often thrive by offering unique culinary experiences and personalized customer service. Location-wise, the strongest performance comes from retail and standalone locations, reflecting convenience and accessibility. Leisure and lodging locations also play a significant role, catering to tourist and traveler needs. Key players like McDonald's, Tim Hortons (implied through MTY Food Group), and other national chains dominate the market, but smaller, specialized restaurants and ethnic food establishments contribute significantly to the industry's diversity and vibrancy. Future growth will likely hinge on adapting to evolving consumer preferences, embracing technology, and managing operational efficiency in the face of rising costs. Recent developments include: December 2022: 7-Eleven announced that it started increasing its footprint in Canada by converting a number of its restaurants into authorized outlets with fine dining seating.December 2022: MTY Food Group Inc., one of its wholly owned subsidiaries, acquired all of the issued and outstanding shares of COP WP Parent Inc. (Wetzel’s Pretzels) from CenterOak Partners. Wetzel’s Pretzels is an American chain of fast-food restaurants specializing in pretzels and hot dogs, operating in the United States, Canada, and Central America.November 2022: 7-Eleven declared the launch of its three new licensed 7-Eleven outlets in Edmonton with a few newly added food items on its menu.. Notable trends are: Increase in number of QSRs and street food vendors owing to the rise in popularity of on-the-go meals.

The market size of the quick service restaurant sector in Canada increased in 2022. That year, the sector reached an all-time high of 33.6 billion U.S. dollars, up from the previous year's total of 27.5 billion U.S. dollars.

Market Size statistics on the Full-Service Restaurants industry in Canada

Canadian fast food restaurants have seen significant growth over the past five years, largely attributed to increased consumer spending and innovative product offerings. However, this growth faced constraints due to high internal competition and shifting consumer tastes. Profitable products like coffee and smoothies have become prominent while customizable meals and high-quality ingredients have gained popularity, prompting industry giants to reconsider their strategies and menu offerings. Consequently, industry revenue is projected to increase an annualized 3.8%, reaching approximately $37.0 billion in 2025, with an anticipated 2.4% growth within that year alone. In 2025, profit is expected to make up 4.8% of revenue.

Consumer eating habits have drastically changed over these past five years. Health-consciousness has surged, pushing for alterations to customary fast food options. Major chains responded by expanding menus to cater for healthier items such as salads, fruits, and smoothies. Increased per capita disposable income levels have also bolstered the industry, enabling more consumers to dine at fast food restaurants. This trend also spiked demand for food delivery services, driving restaurants to invest more in robust online ordering and delivery management systems. The industry is expected to endure challenges resulting from the US-Canada tariff wars as a significant share of restaurant purchases are sourced from the US. As purchases become more expensive, especially fresh produce, Canadian fast food restaurants have pivoted to source from local suppliers. Further, the increasing trend toward national pride will favor Canadian-founded fast food chains such as A&W and Tim Hortons. Looking into 2030, industry revenue is forecasted to exhibit an annualized growth rate of 1.1%, reaching $39.1 billion. Growth is anticipated to be swifter in the first half of this outlook given the adaption to new challenges relating to tariffs. In line with rising demand for healthier food, fast-food joints will likely persist in launching new products that resonate with consumers' evolving preferences. Further, food delivery services are expected to continue playing a significantly larger role in this industry.

Food services and drinking places in Canada were heavily impacted by the coronavirus (COVID-19) pandemic. Due to restrictions on sit-down dining many business in this sector saw huge declines in sales during 2020 and continuing into 2021. The lowest figure was seen in Q2 2020, when in April sales dropped to 2.4 billion Canadian dollars. However, by summer 2021 sales began to reflect pre-pandemic levels again, with July 2021 recording sales of 6.7 billion Canadian dollars. As of November 2024, the monthly sales of food services and drinking places in Canada amounted to 8.02 billion Canadian dollars.

Canada Restaurant POS Software comes with extensive industry analysis of development components, patterns, flows, and sizes. The report calculates present and past market values to forecast potential market management during the forecast period between 2025 - 2033.

The Canada Hospitality Industry Report is Segmented by Type (Chain Hotels and Independent Hotels) and Segment (Service Apartments, Budget and Economy Hotels, Mid and Upper Mid-Scale Hotels, And Luxury Hotels). The Report Offers Market Size and Forecast for the Canada Hospitality Market in Value (USD Billion) for all the Above Segments.

The coronavirus (COVID-19) pandemic caused the Canadian restaurant industry to take a huge hit. Due to social distancing measures and general caution in public places, consumers were forced to dine out less. According to the source, the year-over-year change of seated diners in restaurants in Canada, compared to 2019, was 20.78 percent on August 1, 2022.

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Restaurant Digitization Solutions Market Size 2024-2028

The restaurant digitization solutions market size is forecast to increase by USD 6.89 billion, at a CAGR of 16.81% between 2023 and 2028. The market growth is driven by several key factors such as the growing food service industry and changing consumer preferences, leading to an increased demand for innovative solutions that enhance service efficiency and customer experience. As businesses strive to adapt to evolving market trends, there is a significant focus on reduction in operational costs, achieved through streamlined processes and technology integration. Additionally, the rising need for large-scale client management systems reflects the growing complexity of managing customer relationships and maintaining high service standards in a competitive landscape. These dynamics collectively contribute to market expansion, as companies seek effective strategies and technologies to optimize operations, meet consumer demands, and manage client interactions more efficiently.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market is witnessing significant growth as the Foodservice industry embraces digital technologies to enhance operations, customer experiences, and drive business growth. Key areas of focus include ordering, payment processing, inventory management, data analytics, and customer engagement. Digital ordering and payment processing systems streamline transactions, improve operational efficiency, and cater to the increasing smartphone usage and online food ordering trends. Customer engagement tools like loyalty programs and personalized marketing campaigns leverage data analytics to deliver targeted promotions and enhance the overall customer experience. Delivery apps and online reservation systems further expand the reach of restaurants, while digital menus offer dynamic, interactive experiences. Point-of-sale systems and online ordering platforms enable data-driven decision-making, while mobile payment options and mobile apps offer convenience and flexibility. The tech-driven landscape continues to evolve, with social media and data analytics playing increasingly important roles in shaping the future of the restaurant industry.

Key Market Driver

Growing food service industry and changing consumer preference is notably driving market growth. The restaurant industry is experiencing significant transformation due to digitization technologies, with fast-food segments and cafés adopting digital solutions at an accelerated pace. Digitization is enabling these businesses to expand their online presence through delivery apps, online ordering platforms, and mobile payment options. Data-driven decision-making is becoming essential in this tech-driven landscape, with loyalty programs and personalized marketing campaigns being key differentiators. Mobile apps, contactless ordering, and digital menus are becoming the norm, with machine learning and virtual kitchens revolutionizing the industry.

In addition, growth opportunities abound in areas such as order tracking, stock levels, supply chain management, and digital payment systems. Contactless dining and near-field communication are also gaining popularity, with contactless-enabled cards, smartphones, and wearables becoming common payment methods in a cashless society. Thus, such factors are driving the growth of the market during the forecast period.

Key Market Trends

Growing use of digital payment solutions in food service industry is the key trend in the market. The market is witnessing a significant shift towards digitization, with an increasing number of transactions becoming cashless. According to recent trends, digital payments are projected to account for nearly 90% of total spending in the Canadian market by 2030. In response, numerous foodservice enterprises are adopting digitization technologies to enhance their operations and gain a competitive edge. These solutions include delivery apps, online ordering platforms, mobile payment options, and contactless ordering systems. Digital presence is crucial for fast-food segments and cafes alike, with online reservations, digital menus, and loyalty programs becoming essential components of tech-driven landscapes.

Further, machine learning and virtual kitchens are also gaining popularity, enabling personalized marketing campaigns and optimizing stock levels and supply chain management. Moreover, contactless dining and digital payment systems, such as near-field communication and contactless-enabled cards, are increasingly being adopted to cater to the growing preference for cashless societies. Smartphones and wearables have become essential tools for ordering and making payments, with smart POS systems and order tracking features streamlining processes and improving cu

The hospitality industry has faced significant challenges over the past five years, reflected in the struggles of restaurant and hotel equipment wholesalers. Despite Canada's solid economic performance benefiting restaurants and hotels, wholesalers have yet to capitalize. The competitive nature of the industry and the rise of e-commerce sales have made it difficult for them to secure a market stronghold. Industry revenue is expected to decline at a CAGR of 2.2% over the past five years, reaching $3.0 billion in 2024, when revenue is expected to drop by 3.5%. The pandemic's impact has further exacerbated these struggles. In the hospitality sector, sudden shutdowns and a halt in travel and dining out significantly reduced equipment spending. Even as restaurants and hotels saw a recovery, wholesalers did not see a corresponding increase in sales, as these businesses remained hesitant to make significant equipment investments. High interest rates and economic instability are causing more spending caution, even as commercial construction activity stabilizes. Restaurants' and hotels' performance will undoubtedly affect equipment wholesalers' trajectory. One of the biggest challenges, though, will be the growing competitiveness of the industry. A substantial part of this competition comes from e-commerce, which allows for extensive price, quality and product comparisons. It could also motivate manufacturers to bypass wholesalers entirely. While some wholesalers are working to increase their digital presence to compete, smaller companies are struggling to stay profitable against larger competitors. Over the five years to 2029, restaurant and hotel equipment wholesalers' revenue is forecast to continue declining at a CAGR of 1.7%, resulting in a total revenue of $2.7 billion.

According to a survey conducted in Canada in 2023, 26.5 percent of respondents were worried about the potential negative impact of artificial intelligence (AI) in the grocery industry or restaurant sector on jobs. Another 21.8 percent were worried about its impact on privacy, while 16.3 percent viewed its use as a great idea.

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Quick Service Restaurants Market Size and Trends

The quick service restaurants market size is forecast to increase by USD 61.2 billion at a CAGR of 2.1% between 2023 and 2028. In the market, online ordering and customization are key trends driving growth. Consumers increasingly prefer contactless ordering and pick-up options to minimize waiting times and reduce human error. Digital menus and unassisted sales through kiosks and mobile apps are also gaining popularity. However, challenges persist, such as the need for accurate condiment dispensing and maintaining consistent food quality during digital ordering and pick-up. Innovations in packaging and serving of food are essential to ensure customer satisfaction and minimize food waste. Fluctuations in raw material prices also impact the QSR industry, requiring agility and adaptability from players.

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Quick service restaurants (QSRs) have undergone significant transformation in recent years, with technology playing a pivotal role in shaping the industry. This evolution has been driven by the increasing demand for cheap food and efficient service, making QSRs a staple in the US food market. The inception of technology in QSRs began with the introduction of digital menus and online ordering systems. These innovations have revolutionized the ordering experience, allowing customers to customize their meals and reduce waiting times. Mobile devices have become an integral part of this process, enabling unassisted sales and real-time stock updates. However, the integration of technology in QSRs is not limited to digital menus and online ordering. Human interaction and customer service remain essential components of the QSR experience. Technology is being used to enhance these aspects, rather than replace them. For instance, human error in taking orders can be minimized with the use of digital ordering systems, allowing staff to focus on providing excellent customer service.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

Service

  Eat-in service
  Takeaway service
  Drive-thru service
  Home delivery service


Type

  Chain
  Independent


Geography

  North America

    Canada
    US


  APAC

    China
    Japan


  Europe

    UK


  South America



  Middle East and Africa

By Service Insights

The eat-in service segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to the increasing population of adults aged 25-49 years in the US. With hectic work schedules, QSRs offer a convenient solution for achieving a work-life balance. Consumers seek flexibility and diversity in menu offerings at these establishments.

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The eat-in service segment was the largest segment and was valued at USD 266 billion in 2018. In response, QSR operators are incorporating multi-cuisine dishes to cater to diverse tastes and preferences. This innovation not only attracts new customers but also encourages repeat business. Furthermore, companies offer promotional deals and discounts to enhance the customer experience and identify areas for improvement. In the realm of menu management, the use of paper menus is gradually being replaced by digital, self-ordering kiosks. Hence, such factors are fuelling the growth of this segment during the forecast period.

Regional Analysis

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North America is estimated to contribute 54% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The North American market is experiencing growth due to several factors. Consumers' preference for convenience and affordability, coupled with brand loyalty, continues to drive the industry. In the US and Canada, the trend of eating out is increasingly popular, leading to an increase in the number of quick service restaurants. This trend is particularly strong in the US and Canada, where foot traffic in restaurant chains is high. Another factor is the availability of a diverse range of cuisines and flavors, which attracts consumers and keeps them coming back. The quick service restaurant sector in North America is thriving, with counter service, takeout, and drive-thru options catering to consumers' needs for low price points and convenience.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketi

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Food Service Market Size 2025-2029

The food service market size is forecast to increase by USD 53709.5 billion, at a CAGR of 47.5% between 2024 and 2029.

The market is experiencing significant growth, driven primarily by the increasing demand for food prepared and served away from home. Consumers' busy lifestyles and preference for convenience have led to a surge in demand for quick-service and fast-casual dining options. Additionally, the trend towards increased snacking and indulgence consumption continues to fuel market expansion. However, the Food Service sector faces notable challenges. Labor shortages pose a significant obstacle, as the industry grapples with high turnover rates and difficulty in attracting and retaining skilled workers. These labor issues can lead to operational inefficiencies and increased costs, putting pressure on businesses to find innovative solutions.
To capitalize on market opportunities and navigate challenges effectively, companies must focus on improving operational efficiency, investing in digital food technology to streamline processes, and offering competitive wages and benefits to attract and retain talent. By addressing these key drivers and challenges, players in the market can position themselves for long-term success.

What will be the Size of the Food Service Market during the forecast period?

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In the dynamic and ever-evolving the market, various sectors continually adapt to meet the changing needs of consumers and businesses. Integral components of this industry's growth include recipe management software, refrigeration systems, event planning software, and water conservation, among others. These solutions streamline operations, enhance customer experience, and promote sustainability. Moreover, supply chain optimization, social media marketing, waitlist management, and restaurant insurance are essential elements that contribute to a restaurant's success. Demographic analysis, employee scheduling software, and sales reporting & analytics enable businesses to understand their customer base and optimize revenue growth. Additionally, restaurant location analytics, interior design, menu engineering, and reservation systems cater to the unique requirements of each establishment.

Catering management software, energy efficiency, and food safety regulations ensure operational efficiency and adherence to industry standards. Furthermore, sustainability initiatives, licensing and permits, payment processing gateways, and table management software are vital aspects of modern food service operations. Staff retention, portion control, procurement management, and allergen management contribute to operational efficiency and cost control. In the realm of customer experience, loyalty programs, customer feedback systems, and atmospheric design play a significant role. Commercial ovens, value proposition, waste audit, customer service training, franchise opportunities, labor cost management, and competitive analysis (local) are essential elements that enable food service businesses to thrive in a competitive market.

The food service industry's continuous dynamism is reflected in the ongoing adoption of advanced technologies and innovative solutions. From menu design and pricing strategies to ambient lighting and food storage solutions, these elements are seamlessly integrated to enhance the overall customer experience and drive business success.

How is this Food Service Industry segmented?

The food service industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Service

  Conventional
  Centralized
  Ready-prepared
  Assembly-serve


Sector

  Commercial
  Non-commercial


Cuisine Type

  American
  Italian
  Asian


Price Range

  Budget
  Mid-range
  Premium


Target Audience

  Families
  Professionals
  Students


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    UK


  Middle East and Africa

    UAE


  APAC

    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Service Insights

The conventional segment is estimated to witness significant growth during the forecast period.

In the dynamic the market, various entities play integral roles in enhancing operational efficiency and customer experience. Recipe management software streamlines the preparation process, ensuring consistency and accuracy. Refrigeration systems maintain food's freshness, while energy-efficient models promote sustainability. Event planning software facilitates seamless coordi

Seasonally adjusted receipts of monthly survey of food services and drinking places, by North American Industry Classification System (NAICS), monthly, for five months of data.