GE CAPITAL PUBLISHES ANNUAL REVIEW OF CANADIAN CHAIN RESTAURANT INDUSTRY
The Canadian Chain Restaurant Industry Review is an extensive research report commissioned by GE Capital and compiled by fsSTRATEGY and The NPD Group Canada . Originally released MAY 2012, the annual publication can only be received in hard copy at the Canadian Restaurant Investment Summit. The report is a comprehensive analysis and factual overview of the state of chain foodservice in Canada. Findings have implications for job growth, construction activity and other factors that impact the economic health of Canada for several years to come. The report also sheds light on consumer spending habits and trends from province to province.
Canadian Restaurant Industry Revenues Should Grow to Nearly $60 Billion in 2015, Says New GE Capital Report
Industry Leaders See More Menu Choices, Healthier Options
TORONTO, April 15, 2015 /CNW Telbec/ - Canadian consumers continue to spend more and more at chain and branded restaurants, according to GE Capital's annual Canadian Chain Restaurant Industry Review, an extensive research report on the state of chain foodservice in the country.
The report's findings will be premiered at the sixth annual Canadian Restaurant Investment Summit May 5-6 in Toronto. See below for details.
Foodservice industry sales are expected to increase 4 percent to $59.8 billion in 2015. Diners spent more than $57.5 billion at commercial foodservice establishments in 2014, an increase of 4.9 percent over 2013 and equal to approximately 4 percent of the national gross domestic product.
Ontario and Quebec have the largest commercial foodservice sales at $22.2 billion and $10.5 billion, respectively, driven primarily by their larger populations. Per capita, Alberta has the largest commercial foodservice sales ($2,137), followed by British Columbia ($1,920). Quebec has the lowest commercial foodservice sales per capita ($1,278).
Nearly two-thirds (63.2 percent) of restaurant expenditures take place at chains, which include local, regional, national or international businesses. Those in Atlantic Canada spend the most at chain restaurants – 70 percent. Quebec has the greatest percentage of independent restaurant expenditures – 44.6 percent in 2014, down from 48.4 percent in 2013.
Highlights of Canadian Chain Restaurant Industry Review
The fourth annual Canadian Chain Restaurant Industry Review, a comprehensive analysis of the state of foodservice companies, will be premiered at the Canadian Restaurant Investment Summit. It includes the annual C-Suite Survey, conducted by fsSTRATEGY and NPD Group Canada.
The greatest opportunity in the foodservice industry today, according to C-Suite Survey participants, is menu innovation and refinement, followed by concept refinement.
"Foodservice industry leaders recognize the need to be dynamic in response to the ever more sophisticated consumer, with more choices, more customization, more segmented or targeted positioning, healthier options and better-quality ingredients and flavors," said Edward Khediguian, senior vice president of GE Capital's Franchise Finance business in Canada. "In addition, there's an awareness of the reduction in the span of concept and segment life cycles. They see the value of trying new concepts, such as fast casual or premium options, to take advantage of the ongoing trend toward eating meals away from home."
Similar to 2014, operating costs continue to be the single greatest challenge for survey participants. However, in 2015, cost of goods sold was mentioned as a challenge by more respondents. The rising cost of proteins was cited frequently, as well. Labour costs and productivity were mentioned at the same frequency as in 2014. Click HERE to download “an edited version” of the 2014 Canadian Chain Restaurant Industry Review.
2013 Provincial Dining Trends
• Ontario has the highest commercial foodservice sales at $20.062 billion, followed by Quebec at $10.485 billion.
• Alberta has the highest per capita commercial foodservice sales ($1,991), as well as the country's fastest-growing commercial foodservice sales, up 8.9 percent in 2012.
• Ontario has the largest population but its per capita commercial foodservice sales total $1,485.
• Manitoba has the lowest per capita commercial foodservice sales at $1,214, followed by Quebec at $1,289.
• On average, diners in Alberta spend $777 or 64.0% more in commercial foodservice establishments than diners in Manitoba.
• Nationwide, 62.2% of restaurant expenditures are in chain restaurants; Quebec has the greatest percentage of foodservice expenditures at independent restaurants at 48.4 percent.
Click HERE to download “an edited version” of the 2013 Canadian Chain Restaurant Industry Review.
2012 Research Findings:
• Canadian foodservice industry sales are expected to increase by 3.1% to CAD$65.4 billion in 2012.
• Visits to Canada’s commercial foodservice industry remained relatively flat last year, growing just 1% over the prior year.
• Alberta was the fastest-growing market at 7.8%.
• British Columbia was the only province that experienced foodservice revenue declines.
The report includes insights from the C-suite executives of leading Canadian chains on important issues such as:
• The greatest opportunities and threats in the foodservice industry,
• Restaurant industry merger and acquisition opportunities,
• Expected changes in sales as well as labour and food costs, among other operating and occupancy costs, and
• The outlook on restaurant industry capital expenditures.
Click HERE to download "an edited version" of the 2012 Canadian Chain Restaurant Industry Review.
About GE Capital, Canada
With more than 20 offices throughout Canada, GE Capital (gecapital.ca) offers a wide variety of financial products and services to address commercial financing and fleet management needs in all phases of a business’ lifecycle. From equipment finance to working capital and growth financing to large asset-based and restructuring loans, we apply our wealth of industry expertise and develop custom solutions for your company. Some of the industry sectors we specialize in include transportation, construction, healthcare, agriculture, forestry, manufacturing, oil and gas, wholesale and retail, and restaurant and hotel franchises.
GE Capital offers consumers and businesses around the globe an array of financial products and services. For more information, visit gecapital.com or follow company news via Twitter (@GECapital).
GE (NYSE: GE) works on things that matter. The best people and the best technologies taking on the toughest challenges. Finding solutions in energy, health and home, transportation and finance. Building, powering, moving and curing the world. Not just imagining. Doing. GE works. For more information, visit the company's website at ge.com.
Executive Director, Foodservice Canada
The NPD Group
1500 Don Mills Rd. Suite 502, Toronto, ON M3B 3K4
Consultants to the Foodservice Industry
T: 416.229.2290 ext. 1
Senior Vice President, Franchise Finance
GE Capital - Franchise Finance