Tag Archives: Canada

CHD Expert Reviews the Canadian Restaurant Industry Landscape And Identifies Why Toronto Is Unique

28 Feb

CHD Expert has new data indicating that independent restaurant operators are making an impact in Toronto’s foodservice market landscape. The new data reveals that 69.3 percent of restaurants in Toronto are independent restaurants (1 to 9 units), whereas only 63.4 percent of nationwide restaurants are considered independent. This release will focus on the Canadian restaurant landscape, specifically focusing on Toronto’s independent restaurant operator growth, and popular menu types.

With the 2013 Canadian Restaurant And Foodservice Association Show just a few days away, CHD Expert evaluates the Canadian foodservice market landscape, specifically focusing on the host city of Toronto, and it’s surge among independent restaurants.

When looking specifically at Toronto’s restaurant market landscape, chances are you will find a unique destination that will delight your taste buds. 65.6 percent of all restaurants in Toronto are Full Service Restaurants (FSRs), compared to the 34.4 percent of the city’s Limited Service Restaurants (LSRs). Independent restaurants have a strong presence among Toronto’s FSR segment, making up 93.4 percent of the city’s total FSR market. Toronto’s limited service market segment is made up of primarily chains, with only 23.3 percent of LSR restaurants being independent. By definition, Full Service Restaurants offer table service, whereas a Limited Service Restaurant does not have a wait staff.

When evaluating Toronto’s ‘fine dining’ menu type, approximately 7.5 percent of establishments fall into this category, which is significantly larger than the Canadian national average of 4.3 percent. This difference is similar to that of the “Coffee Shops and Tea Houses” segment, which make up 7.1 percent of Toronto’s landscape, compared to the national average of 4.5 percent. While both of these foodservice segments individually have small market shares against the field, the city of Toronto has shown that these types of restaurants play an important role in the makeup of the city’s foodservice scene.

Toronto’s landscape is distinctly different than the rest of the country. There are more European menu type restaurants in Toronto than in the rest of Canada, making up 5.3 percent of the Toronto landscape, compared to 3.2 nationwide. Data reveals that 9.6 percent of restaurants in Toronto are Asian, whereas Asian restaurants only account for 6.6 percent nationwide. One of the USA’s favorite menu type ‘hamburger,’ does not have as strong of a presence in Canada and is even less predominant is Toronto. As a nation, approximately 6.1 percent of Canadian restaurants serve a ‘hamburger’ menu type.

“Food is at the center of all great cities, and unique independent restaurants fuel the dinning out experience,” stated Brad Bloom, Director of Sales for CHD Expert North America. “As big cosmopolitan cities grow and diversify, some entrepreneurs decide to innovate with their food, and it is CHD Expert’s business to keep on top of the constantly changing market landscape. It is interesting to evaluate the foodservice landscape for such a great city like Toronto, and I am looking forward to the 2013 Canadian Restaurant and Foodservice Association Show.”

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2012 Canadian Commercial Restaurant Food Service Market Overview: How it differs from the United States

20 Dec

CHD Expert breaks down the 2012 Canadian foodservice market landscape, providing data on different restaurant segments and menu types, with comparisons to the United States.

Chicago-based food service database, marketing, and analytics firm, CHD Expert provides a unique 2012 overview of the Canadian food service market landscape, specifically focusing on full service and limited service restaurants.

The economic environment is stabilizing in the U.S. and in Canada, which brings confidence for 2013. The foodservice industry is expected to steadily grow throughout the year in North America.

The Canadian restaurant industry roughly represents a tenth of the size of the U.S. industry and the market landscape looks increasingly similar across the border. The number of U.S. restaurant chains entering the Canadian market has been significantly growing during 2012.

The first noticeable difference between the U.S. and Canada is the number of limited service restaurants compared to full service restaurants. LSRs represent 40.8 percent of the restaurant industry in Canada, whereas LSRs account for 48.5 percent of the U.S. industry. Consumers tend to look for quicker and cheaper eating options, which explains why the LSR segment has been performing better than FSRs for the past few years. The LSR segment in Canada is expected to gain market share over FSR in the years to come.

When evaluating full and limited service restaurants by menu type, the following types of establishments hold the largest amount of market share in Canada and US:

While the Canadian food service market is substantially smaller than the U.S. market, the top three types of eating establishments are the same in both countries. However there is one noticeable difference between the two countries operator counts by simplified menu type, and it occurs between the fourth most popular menu types. In Canada Beverages rank at the fourth position, as opposed to Mexican in the U.S.

As Mexican food continues to increase in popularity in the U.S. this could become a trend that will soon reach Canada. Therefore it might behoove Canadian establishments to consider this growing menu type as they forecast into the future and attempt to project what consumers will be eating.

The other Asians menu type ranks at the fifth position in Canada, whereas in the U.S. hamburgers occupy that position. One of the explanations is that the Thai menu type has emerged as a favored ethnic cuisine in Canada during 2012. It is not surprising to see hamburgers ranked at the fifth position in the U.S. since it is America’s quintessential comfort food. “Establishments with varied menus hold the most market share,” stated Catherine Kearns, General Manager of CHD Expert. “This data shows that food service establishments who offer diverse menus attract more consumers as they appeal to wider populations and meet consumer preferences. For instance, TGI Fridays has seen an opportunity arise in Canada and entered the market during 2012. As we move into the New Year, existing and aspiring food service operators throughout Canada can consider adding new and varied dishes to their menus in order to meet diverse consumer preferences.

To learn more about these and other resources, contact Nicolas Watson by email: nwatson@chd-expert.com or call 312-768-6913.

 

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