From serving 1.2 million Canadians with jobs to satisfying billions of dollars in consumer cravings, the Canadian restaurant industry is not just feeding the nation but fueling a dynamic, multi-faceted economy worth over $132 billion.
Key Takeaways
- In 2023, the Canadian restaurant industry achieved total sales of $132.5 billion, marking a 7.2% increase from 2022 despite inflationary pressures.
- Quick-service restaurants accounted for 38% of total industry sales in Canada in 2023, totaling approximately $50.35 billion.
- Full-service restaurants generated $62.4 billion in revenue in 2023, comprising 47% of the overall Canadian restaurant market.
- Canada's restaurant industry employed 1.2 million people in 2023, accounting for 6.2% of total national employment.
- The sector added 45,000 net new jobs in 2023, with 60% in full-time positions.
- Women comprised 55.3% of the restaurant workforce in Canada as of 2023.
- Average customer spends $18.40 per visit at quick-service restaurants in Canada in 2023.
- 62% of Canadians dined out at least once weekly in 2023, up from 54% in 2022.
- Delivery orders accounted for 22% of total restaurant sales in urban areas in 2023.
- Food costs for restaurants averaged 32.5% of total expenses in 2023.
- Labor costs represented 34.2% of operating expenses for Canadian restaurants in 2023.
- Rent and occupancy costs rose to 8.7% of revenues amid urban inflation in 2023.
- The industry is projected to grow to $145 billion in sales by 2025.
- Employment expected to reach 1.35 million by 2027, with 2.5% annual growth.
- Delivery and takeout projected to comprise 28% of sales by 2026.
Canada's restaurant industry saw strong sales growth and expansion in 2023 despite significant economic pressures.
Consumer Behavior
- Average customer spends $18.40 per visit at quick-service restaurants in Canada in 2023.
- 62% of Canadians dined out at least once weekly in 2023, up from 54% in 2022.
- Delivery orders accounted for 22% of total restaurant sales in urban areas in 2023.
- 48% of consumers preferred sustainable sourcing in restaurant choices in 2023 polls.
- Plant-based menu items saw 35% demand increase among millennials in 2023.
- Average check size at full-service restaurants rose to $32.10 per person in 2023.
- 71% of diners used mobile apps for reservations or ordering in 2023.
- Loyalty programs influenced 55% of repeat visits to chain restaurants in 2023.
- Health-conscious meals drove 28% of sales growth in casual dining in 2023.
- Weekend dining peaked at 45% of weekly consumer restaurant spending in 2023.
- 67% of consumers aged 18-34 ordered via apps in 2023.
- Boomers spent 15% more on wine pairings in 2023.
- 55% sought gluten-free options, boosting sales 18%.
- Family dining averaged $85 per visit in 2023.
- 29% increase in vegan meal orders post-pandemic 2023.
- Contactless payments used by 88% of diners in 2023.
- Reviews influenced 76% of restaurant selections 2023.
- Off-premise sales hit 35% in suburbs in 2023.
- Craft beer drove 22% beverage sales growth 2023.
- 61% prioritized local ingredients in choices 2023.
Consumer Behavior Interpretation
Despite still happily spending $18.40 on a quick burger, the modern Canadian diner has evolved into a digitally savvy, eco-conscious creature who orders via app for a health-focused, locally sourced meal—unless it’s the weekend, in which case they’ll bring the family and splurge $85, likely influenced by online reviews and a powerful urge for craft beer.
Costs and Expenses
- Food costs for restaurants averaged 32.5% of total expenses in 2023.
- Labor costs represented 34.2% of operating expenses for Canadian restaurants in 2023.
- Rent and occupancy costs rose to 8.7% of revenues amid urban inflation in 2023.
- Energy costs increased by 15.4% year-over-year, averaging $45,000 per outlet in 2023.
- Supply chain disruptions added 6.2% to ingredient procurement costs in 2023.
- Marketing expenses averaged 3.1% of sales, with digital ads at 65% of budget in 2023.
- Insurance premiums for restaurants surged 12% to an average of $18,500 annually in 2023.
- Technology investments cost outlets $22,000 on average for POS systems in 2023.
- Waste management expenses hit 2.4% of total costs due to composting mandates in 2023.
- Utilities cost rose 14% to 4.2% of expenses 2023.
- Maintenance averaged $15,200 per outlet yearly 2023.
- Credit card fees took 2.8% of sales in 2023.
- Packaging for takeout up 11% costing $8,500 avg 2023.
- Licensing and permits averaged $4,200 annually 2023.
- Digital marketing ROI averaged 4:1 in 2023 spends.
- Property taxes burdened urban spots at 5.1% costs 2023.
- Uniform and linen services cost $3,800 avg 2023.
- POS software subscriptions averaged $450/month 2023.
Costs and Expenses Interpretation
The Canadian restaurateur in 2023 was a masterful, overworked juggler who discovered that keeping just 30% of a revenue dollar for themselves meant heroically balancing soaring food and labor costs against a relentless siege of new fees, from energy to insurance to composting, while still trying to smile for the digital marketing camera.
Employment and Labor
- Canada's restaurant industry employed 1.2 million people in 2023, accounting for 6.2% of total national employment.
- The sector added 45,000 net new jobs in 2023, with 60% in full-time positions.
- Women comprised 55.3% of the restaurant workforce in Canada as of 2023.
- Servers and bartenders made up 28% of restaurant employees, totaling 336,000 workers in 2023.
- Chefs and cooks numbered 320,000 in the industry, with a 4.1% employment growth in 2023.
- Youth aged 15-24 held 32% of restaurant jobs, approximately 384,000 positions in 2023.
- Immigrant workers represented 42% of the restaurant labor force in major cities in 2023.
- Average hourly wage for restaurant servers was $16.55 in 2023, up 5.8% from prior year.
- Kitchen staff turnover rate stood at 78.2% annually in Canadian restaurants in 2023.
- 65% of restaurant managers reported labor shortages as their top challenge in 2023 surveys.
- 75,200 restaurant establishments operated across Canada in 2023.
- Full-time employees totaled 720,000, part-time 480,000 in 2023.
- Visible minorities held 38% of positions in urban restaurants 2023.
- Indigenous workers comprised 4.2% of the workforce in 2023.
- Average tenure for cooks was 2.1 years amid high turnover 2023.
- 52% of outlets used temp agencies for staffing in 2023.
- Bartender wages averaged $17.20/hour including tips in 2023.
- Managers earned $52,400 median annual salary in 2023.
- Training costs per new hire averaged $2,100 in 2023.
- 40% of jobs required no prior experience in 2023 entry-level.
Employment and Labor Interpretation
Canada's restaurant industry is a vibrant, often underappreciated economic engine—employing over a million, led by women, heavily reliant on youth and immigrants, and powered by the hard work of servers and cooks who, despite fueling 6.2% of national employment with remarkable diversity, face notoriously high turnover and wages that are slowly simmering but not yet boiling over.
Future Projections and Trends
- The industry is projected to grow to $145 billion in sales by 2025.
- Employment expected to reach 1.35 million by 2027, with 2.5% annual growth.
- Delivery and takeout projected to comprise 28% of sales by 2026.
- AI integration in menus forecasted to boost efficiency by 15% by 2025.
- Sustainable practices to drive 40% menu changes by 2027.
- Ghost kitchens expected to multiply by 3x, adding $5B revenue by 2026.
- Labor automation to reduce staff needs by 10% in quick-service by 2025.
- Plant-based options projected to reach 25% of menus by 2026.
- Revenue growth of 5.8% annually forecasted through 2028.
- Online sales projected to grow 12% yearly to 2028.
- EV charging stations in 30% parking lots by 2026.
- Voice ordering via Alexa to hit 15% orders by 2027.
- Personalized menus via AI in 45% chains by 2025.
- Zero-waste kitchens standard in 25% by 2026.
- Robot servers in 10% quick-service by 2025.
- NFT loyalty programs in 5% upscale by 2027.
- Metaverse dining experiences pilot in 2% by 2026.
- Carbon-neutral certifications in 18% by 2028.
- Hyper-local sourcing 60% menus by 2025.
Future Projections and Trends Interpretation
In short, Canada's restaurant future looks like a bustling ghost kitchen where your AI-crafted plant-based meal, ordered by voice for takeout, is served by a robot with NFT loyalty perks, all while charging your EV under a zero-waste, carbon-neutral promise.
Revenue and Sales
- In 2023, the Canadian restaurant industry achieved total sales of $132.5 billion, marking a 7.2% increase from 2022 despite inflationary pressures.
- Quick-service restaurants accounted for 38% of total industry sales in Canada in 2023, totaling approximately $50.35 billion.
- Full-service restaurants generated $62.4 billion in revenue in 2023, comprising 47% of the overall Canadian restaurant market.
- Ontario's restaurant sector contributed $48.2 billion to national sales in 2023, representing 36.4% of total industry revenue.
- Alberta's restaurants saw sales rise to $15.8 billion in 2023, up 9.1% year-over-year due to population growth.
- British Columbia's restaurant industry recorded $22.1 billion in sales for 2023, driven by tourism recovery.
- Quebec restaurants generated $28.7 billion in 2023, with casual dining segments leading at 52% share.
- The average annual revenue per restaurant outlet in Canada was $1.42 million in 2023.
- Fine dining establishments in Canada averaged $2.8 million in sales per location in 2023.
- Fast-casual restaurants grew sales by 12.4% to $18.9 billion industry-wide in 2023.
- Manitoba restaurants reported $4.2 billion sales in 2023, up 6.5%.
- Saskatchewan's sector hit $3.9 billion, with independents at 55% share.
- Nova Scotia dining sales reached $2.1 billion in 2023 from tourism.
- Newfoundland restaurants generated $1.8 billion, seafood leading.
- PEI outlets totaled $650 million sales in 2023.
- Northwest Territories saw $420 million from remote dining in 2023.
- Yukon restaurants recorded $280 million sales in 2023.
- Nunavut's limited outlets generated $150 million in 2023.
- Independent restaurants contributed 42% of total sales at $55.65 billion in 2023.
- Chains captured 58% market share with $76.85 billion in 2023.
- Bars and pubs added $12.3 billion to restaurant-inclusive sales in 2023.
- Cafes and coffee shops grew to $9.8 billion in 2023.
- Pizzerias alone generated $7.2 billion industry-wide in 2023.
- Steakhouses averaged $3.1 million revenue per location in 2023.
Revenue and Sales Interpretation
Canada's restaurants served up a hearty $132.5 billion in sales for 2023, proving that whether you're grabbing a quick bite in Ontario, savoring a steak, or fueling up on coffee, the nation's appetite is robust enough to chew through inflation and still ask for dessert.
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