2022
8
The Canadian Foodservice Consumer Market Report 2022
2022-06-01T04:05:12+01:00
REPED5CA383_5415_46EF_AD89_558F3593362B
3695
151843
[{"name":"Consumer Insights","url":"https:\/\/store.mintel.com\/industries\/consumer-insights"},{"name":"Foodservice","url":"https:\/\/store.mintel.com\/industries\/foodservice"}]
Report
en_GB
“It’s been over two years of incredible challenges for the foodservice industry. There is positive momentum and broad usage, but lasting behaviour changes will delay its return to pre-pandemic levels.
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  6. The Canadian Foodservice Consumer Market Report 2022

The Canadian Foodservice Consumer Market Report 2022

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“It’s been over two years of incredible challenges for the foodservice industry. There is positive momentum and broad usage, but lasting behaviour changes will delay its return to pre-pandemic levels.
Looking ahead, consumers’ increased comfort with digital tech opens the door for restaurants to differentiate and improve profitability with streamlined operations.”
– Scott Stewart, Associate Director, Lifestyles & Retail

This Report looks at the following areas:

  • Restaurant visits and access modes used.
  • Comparing visit occasions before and during the pandemic.
  • The tactics, if any, that consumers will use to offset rising prices.
  • Usage of restaurant tools like website, apps, coupons and loyalty programs.
  • The parts of the restaurant experience that consumers want to see be improved.
  • How digital tech is used and whether or not consumers want more.
  • The importance of teens to the industry and their top motivators.
Collapse All
  1. Overview

    • What you need to know
    • Key issues covered in this Report
    • Definition
  2. Executive Summary

    • Top takeaways
    • Market overview
      • Figure 1: Category outlook, 2022-27
    • Opportunities
    • Foodservice’s relevance is broad and stable
    • There are countless ways to differentiate
    • The pandemic has been a turning point for digital tech in restaurants
    • Challenges
    • Certain occasions are at risk of being lost long term
    • Consumers are prepared to respond to inflation
  3. The Market – By the Numbers

    • A bounce-back year was not enough, and 2022 will be similar
      • Figure 2: Foodservice sales, 2017-21
  4. Market Factors

    • COVID concerns have gone down, but are still lingering
      • Figure 3: Concern about risk of exposure to COVID-19, 2020-22
    • Restaurants are experiencing food price inflation
      • Figure 4: Consumer price index (food), 2020-22
    • Minimum wage increases create another challenge
    • Related industries are also struggling
      • Figure 5: Tourism demand in Canada, Q4 2018-Q4 2021
      • Figure 6: Cineplex theatre attendance, 2017-21
    • A return to normal for pro sports is a welcomed boost
      • Figure 7: Couchgating, 2021
  5. Competitive Strategies

    • Without COVID restrictions, companies are navigating strategically
    • Loyalty programs are becoming the norm
      • Figure 8: McDonald’s Twitter post, 2021
      • Figure 9: Starbucks Twitter post, 2021
    • Restaurants will use price increases to offset inflation
      • Figure 10: Subway Canada Instagram post, 2022
  6. The Canadian Foodservice Consumer – Fast Facts

  7. Restaurant Usage

    • Most Canadians are using restaurants
      • Figure 11: Restaurants used in the past three months, 2022
    • Young, employed Canadians are the most common restaurant patrons
      • Figure 12: Used any restaurant in the past three months, by age, parental status and employment status, 2022
      • Figure 13: McDonald’s Canada Instagram post, 2021
    • Quebec remains underdeveloped
      • Figure 14: Restaurants used in the past three months, overall vs Quebec, 2022
    • Consumers are shifting back to on-premise visits
      • Figure 15: Ways of getting meals from restaurants in the past three months, 2021 vs 2022
      • Figure 16: Ways of getting meals from restaurants in the past three months, by worry about exposure to COVID-19, 2022
  8. Restaurant Occasions before and during the Pandemic

    • Functional restaurant visits have been relatively stable
      • Figure 17: Functional restaurant occasions before and during the pandemic, 2022
      • Figure 18: Discretionary restaurant occasions before and during the pandemic, 2022
      • Figure 19: The Keg Instagram post, 2021
    • Remote workers may stop functional visits from fully rebounding
      • Figure 20: At-work restaurant occasions before and during the pandemic, by current working situation, 2022
      • Figure 21: Going to/from work restaurant occasions before and during the pandemic, by current working situation, 2022
    • COVID-19 is a factor for discretionary restaurant occasions, but not the only one
      • Figure 22: Restaurant occasions before and during the pandemic among those who are worried about COVID-19, 2022
      • Figure 23: Restaurant occasions before and during the pandemic among those who are not worried about COVID-19, 2022
    • Older consumers have had the largest decline
      • Figure 24: Discretionary restaurant occasions during the pandemic, by age, 2022
  9. How Consumers Will Handle Price Increases

    • Canadians are worried about inflation
      • Figure 25: Top concerns, 2022
      • Figure 26: Actions in response to rising prices at restaurants, 2022
    • Leveraging savings tools to offset costs
    • Chinese Canadians will be the most active with digital coupons
      • Figure 27: Coupons and loyalty programs in response to rising prices at restaurants, by race, 2022
    • Coupons and loyalty programs will increase in frequency more than reach
    • Many will look for lower prices – especially in fast food
    • Those with healthy finances are the least likely to seek out lower prices
      • Figure 28: Switching to lower prices in response to rising prices at restaurants, by financial situation, 2022
    • Adapting ordering behaviour to mitigate cost increases
    • Value meals and meat-free options to offset inflation
      • Figure 29: Ordering less food in response to rising prices at restaurants, by age, 2022
    • One in five consumers do not plan to make any changes
      • Figure 30: Would not change response to rising prices at restaurants, by employment status, student status and financial situation, 2022
  10. Using Restaurant Tools

    • Young consumers are driving the shift from sites to apps
      • Figure 31: Digital restaurant resources used in the past three months, by age, 2022
      • Figure 32: Digital restaurant resources used in the past three months, by daily social media usage, 2022
    • Leveraging digital incentives to drive mobile app usage
      • Figure 33: Digital restaurant resources used in the past three months, by loyalty and coupon usage, 2022
      • Figure 34: Tim Hortons Twitter post, 2020
    • French Quebec consumers are the least likely to use digital tools
      • Figure 35: Digital restaurant resources used in the past three months, overall vs Quebec, by language, 2022
    • Chinese Canadians use mobile apps more than others
      • Figure 36: Digital restaurant resources used in the past three months, by race, 2022
    • Self-serve kiosks remain niche and may soon prove redundant
      • Figure 37: Ways of ordering at restaurants in the past three months, by age, 2022
    • Using restaurant tools to save money
      • Figure 38: Savings used at restaurants in the past three months, by household income, 2022
    • Putting loyalty programs into perspective
    • Physical coupons still have relevance today
      • Figure 39: Coupons used at restaurants in the past three months, by age, 2022
      • Figure 40: Fido Twitter post, 2022
  11. Priorities for Restaurants

    • Improving loyalty programs is a delicate balance
      • Figure 41: Initiatives restaurants should invest more resources into, 2022
    • Active loyalty users are the most interested in seeing programs improve
      • Figure 42: Restaurants should invest resources into loyalty programs, by current loyalty program behaviours, 2022
    • The menu is a constant focal point for diners
      • Figure 43: Menu initiatives restaurants should invest more resources into, men vs women, 2022
    • Making a healthier, more sustainable menu
      • Figure 44: Menu initiatives restaurants should invest more resources into, overall vs those who believe restaurants should invest resources into sustainability, 2022
      • Figure 45: Quesada Burritos Instagram post, 2022
    • COVID precautions have become an aspect of restaurant service
      • Figure 46: Customer service initiatives restaurants should invest more resources into, by concern about risk of exposure to COVID-19, 2022
    • Restaurants that cater to older women should be particularly focused on COVID-19 safety
      • Figure 47: Restaurants should invest resources into COVID-19 safety, by age and gender, 2022
    • In-house delivery services are an opportunity to increase profitability
      • Figure 48: Restaurants should invest resources into in-house delivery service, overall vs delivery users, 2022
    • Modernizing the restaurant experience
    • Younger consumers are the most interested in these advancements
      • Figure 49: Modernization initiatives restaurants should invest more resources into, by age, 2022
      • Figure 50: Modernization initiatives restaurants should invest more resources into – 18-34s, men vs women, 2022
      • Figure 51: Tim Hortons Twitter post, 2020
    • Investment in design/décor should be reconsidered amid the pandemic
  12. The Role of Digital Tech in Restaurants

    • Consumers are conflicted about more technology
      • Figure 52: Attitudes towards innovations in restaurants (% agree), 2022
    • Young consumers are interested in innovations, but still appreciate the good old days
      • Figure 53: Attitudes towards innovations in restaurants (% agree), by age, 2022
    • Half of consumers are open to more restaurant automation
      • Figure 54: Attitudes towards automation in restaurants (% agree), by age, 2022
    • Consumers who have minimal contact with restaurants are the most open to automation
      • Figure 55: Attitudes towards automation in restaurants (% agree), by past three-month access modes, 2022
    • Automation at full-service restaurants must be more nuanced
      • Figure 56: ‘I’d like to be able to digitally pre-order at full-service/sit-down restaurants’ (% agree), by age, 2022
    • Mobile apps’ importance to foodservice
      • Figure 57: Attitudes towards restaurant mobile apps (% agree), by age, 2022
  13. Teens at Fast Food

    • Most teenagers use the foodservice industry
    • Taste, convenience and price are key decision factors
      • Figure 58: Teens: fast food restaurant decision factors, 2021
    • Low importance of mobile ordering is illustrative of its value to older consumers
  14. Appendix – Data Sources and Abbreviations

    • Data sources
    • Consumer survey data
    • Consumer qualitative research
    • Mintel Trend Drivers
    • Abbreviations and terms
    • Abbreviations
    • Terms

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