Canada Foodservice Market Report Forecast by Type, Commercial Restaurant, Non-Commercial Restaurant, Province and Companies Analysis 2025-2033

The Canada foodservice market is likely to increase drastically as it grows to US$135.52 billion in 2033 from US$ 84.14 billion in 2024. The increase in market size is mainly driven by increased consumers' spending on different foods, changed eating patterns of consumers, and high consumer demand for diverse foodservices. It is expanding with a compound annual growth rate (CAGR) of 5.43% from 2025 2033 due to nationwide popularity of convenience, delivery services, and new emerging food products.

Canada Foodservice Market Outlooks

Foodservice is the segment that deals with the preparation, service, and sale of food and beverages outside the household. This includes a variety of establishments, such as restaurants and cafes, catering services, quick-service outlets, and institutional food services (hospitals, schools, and corporate offices). The food service industry is one of the important sectors in the economy of Canada, creating employment opportunities and innovating culinary trends.

Foodservice in Canada is diversified, catering to a wide range of consumer preferences, including casual dining, fine dining, and fast food. It satisfies the increasing demand for convenience by providing ready-to-eat meals for busy individuals, families, and professionals. The rise of delivery services, online food ordering, and takeaway options has expanded the reach of the food service market. Moreover, the Canadian food service industry increasingly focuses on healthier menu options, plant-based foods, and sustainable sourcing, responding to changing consumer demands for nutrition and environmental responsibility. The food service market also serves as an essential space for developing local food culture and innovation, driven by consumer trends and evolving dining experiences across the country.

Growth Driver in the Canada Foodservice Market

Rising Consumer Demand for Convenience

As Canadians continue to get busier, the demand for convenience in food options only continues to increase. More and more people are searching for fast, ready-to-eat meals. This has led to the growth of quick-service restaurants (QSRs), delivery services, and takeout options. This trend has further been facilitated by the rise of digital ordering platforms and food delivery apps, as it now becomes easier to access favorite meals with minimal effort. This trend toward convenience is driving the growth of Canada's foodservice market, especially in urban regions where lifestyles are busy.

Health and Wellness Trends

Health-consciousness among Canadian consumers is transforming the foodservice market. There is an increasing demand for healthier menu options, including plant-based dishes, organic foods, and sustainable sourcing. As consumers become more aware of the impact of food on their well-being, they are choosing restaurants and foodservice providers that prioritize nutritious, low-calorie, and allergy-friendly offerings. In response, many foodservice businesses are revising their menus to cater to these preferences, expanding market growth and appealing to a broader, health-conscious audience.

Expansion of Delivery and Online Ordering Services

The rise of online food delivery services is one of the key drivers of growth in the Canadian foodservice market. The widespread use of food delivery apps and platforms, such as Uber Eats, DoorDash, and SkipTheDishes, has made it easier for consumers to access meals from their favorite restaurants without leaving their homes. This change in consumer behavior, driven by the COVID-19 pandemic, has hugely added to the growth in the foodservice industry. Enterprises are responding to the demand for more convenience by offering delivery and pickup options, hence, growing their customer base while creating more revenue potential.

Barriers in the Canada Foodservice Market

Staff Shortages and Increased Expenses on Employment

There is a significant challenge in the foodservice industry in Canada associated with staff shortages and an increased expense on employment. Helping the industry source and retain more skilled workers--specifically chefs, servers, and kitchen staffs--the shortages will continue to raise wages, boost training costs, and pose a challenge for operations in serving customers to their full quality. Beyond these shortages, the recurring struggle of finding employees to sustain businesses continues to threaten foodservice, making it harder to service growing consumers while sustaining profitability.

Supply Chain Disruptions and Ingredient Cost Hikes

The Canadian foodservice sector is grappling with supply chain disruptions, as well as creeping ingredient price hikes. Worldwide, especially after outbreaks like COVID-19, and heightened geop politics, delays occur in all food and drink, also packaging supplies, while the costs for their purchases get higher. Companies operating a foodservice can be prompted to revise menus; charge the customer, increasing menu item prices or covering higher inputs. Pressure also on profitability margin along with inconsistency offered to consumers while creating the menu due to unstable fluctuations in the cost of all such prime ingredients: meat, dairy products, and fresh produces

Canada Full Service Restaurant Market

Full-service restaurants continue to be a dominating component in the Canada Food Service Market. They do their business even if customer choices change and if delivery/casual and delivery companies seem to rise and grab many of the pie because, as mentioned, it delivers an all-inclusive meal. Famous for customized service, atmosphere, and multiple menu options, they attract a wide range of clients. The ongoing appeal of the relaxing dining experience and the changing nature of the industry mean that Full-Service Restaurants remain the staple in the Canadian foodservice, where they remain the market leaders.

Canadian Retail food service non-commercial restaurant industry

The Canadian retail food service non-commercial restaurant market is growing very fast. This increase may be due to shifting consumer preferences, increased demand for different types of food services, and innovation in non-traditional food service concepts. The non-commercial sector, which includes entities within retail, educational, and health care settings, is gaining more popularity. The retail food service non-commercial restaurant industry is booming, and it focuses on comfort and providing quality food in non-traditional dining venues. The ability of such businesses to change and adapt to meet the fluid needs of the consumer accounts for much of their enhanced growth within the Canadian food service environment.

Ontario food service industry

Ontario province will lead the Canadian service industry market sales. Being a province with an exciting range of cuisines and large population, Ontario is an important hub for food provider business organizations. The economic strength and cultural diversity of the province contribute to a growing food service industry. Major urban centers, such as Toronto, are culinary destinations with many restaurants, cafes, and a variety of other culinary establishments. With a strong demand for food provider services, Ontario is expected to command the lion's marketplace revenue share, reflecting its critical role in shaping the Canadian food service enterprise.

Nova Scotia Foodservice Industry

The foodservice industry in Nova Scotia is a significant contributor to the province's economy based on local demand and tourism. With its diverse dining, Nova Scotia offers many foodservice options, including fine dining, casual eateries, cafes, and fast-food venues. The demand for fresh, local ingredients, especially seafood, is one huge trend, reflecting the heritage of the province, whose maritime history is rich. Additionally, more convenient consumer access through food delivery services and takeout options increases the growth of the market. Nova Scotia's foodservice industry, though facing rising costs and labor shortages, continues adapting and innovating to stay ahead of changing consumer demands.

Alberta Foodservice Industry

Food service industries in Alberta are very integral to the economy of that province. It offers numerous forms of dining experiences ranging from casual to fine dining and cafes to fast food. The market is driven by local demand and tourism, with a strong emphasis on locally sourced ingredients, particularly beef, which is central to Alberta's agricultural industry. In addition, takeout and delivery services have increased significantly, reflecting the changing preferences of consumers. Labor shortages, increasing ingredient costs, and fluctuating oil prices, which may impact consumer spending, continue to affect the industry. Despite these challenges, the foodservice industry in Alberta is still very strong and focused on innovation and sustainability in its offerings.

Saskatchewan Foodservice Industry

The foodservice industry in Saskatchewan is a vital sector of the province's economy, with a wide range of establishments, from family-owned restaurants and cafés to fast food outlets and fine dining options. A growing trend in the province, given the province's high agricultural industry, is a demand for local, farm-to-table food, particularly beef, grains, and pulse crops. Delivery services and take-out options are growing in popularity, indicating shifts in consumer behavior. Industry-wide issues affecting this business include labor shortages, food cost variability, and seasonality within tourism. Despite these challenges, Saskatchewan's foodservice industry remains to grow with innovation, local sourcing, and adapting consumer preferences.

Canadian food service market Key Player

Starbucks Corp, Domino's Pizza Inc., The Wendy's Co., Seven & I Holdings Co. Ltd, Restaurant Brands International Inc., A&W Food Services of Canada Inc., MTY Food Group Inc., Performance Food Group Company, Papa John's International Inc., McDonald's, Berkshire Hathaway, and Yum! Brands Inc. This is a renowned player in the Canadian food service market.

Restaurant Type - has been covered from 4 viewpoints:

1. Commercial

1. Quick-Service Restaurants (QSRs)
2. Full-Service Restaurants
3. Caterers
4. Drinking Places

2. Non-Commercial

1. Accommodation foodservice
2. Institutional foodservice
3. Retail Foodservice
4. Other Foodservice

Province - has been covered from 13 viewpoints:

1. Newfoundland and Labrador
2. Prince Edward Island
3. Nova Scotia
4. New Brunswick
5. Quebec
6. Ontario
7. Manitoba
8. Saskatchewan
9. Alberta
10. British Columbia
11. Yukon
12. Northwest Territories
13. Nunavut

Company Analysis:

• Overview
• Recent Development
• Revenue

Companies Covered:

1. Starbucks Corp
2. Domino's Pizza Inc.
3. The Wendys Co.
4. Seven & I Holdings Co. Ltd
5. Restaurant Brands International Inc
6. A&W Food Services of Canada Inc.
7. MTY Food Group Inc.
8. Performance Food Group Company
9. Papa John's International Inc.
10. McDonald's
11. Berkshire Hathaway
12. Yum! Brands Inc.