2024
8
Canada Foodservice Consumer Market Report 2024
2024-06-19T15:01:58+01:00
REPA61EAFC3_9447_4CCC_9256_098BB3C9BEEF
3695
173829
[{"name":"Foodservice","url":"https:\/\/store.mintel.com\/industries\/foodservice"}]
Report
en_GB
Canadians have rekindled their interest in dining out after a few tough years of lockdowns and economic uncertainties. Still, competition has been reignited and is further complicated by shifts in…

Canada Foodservice Consumer Market Report 2024

£ 3,695 (Excl.Tax)

Report Summary

Canadians have rekindled their interest in dining out after a few tough years of lockdowns and economic uncertainties. Still, competition has been reignited and is further complicated by shifts in societal dynamics that affect consumer preferences like workplace changes and evolving demographics, which affect consumer preferences related to value, usage patterns and demands for specific flavours and experiences.

In response, operators need to astutely allocate resources to meet consumer expectations around convenience, culinary innovation and value amidst ongoing economic uncertainties.

This report looks at the following areas:

  • An overview of the types of locations consumers dine at/from, how they use foodservice and at which dayparts
  • What encourages and discourages consumers from using foodservice
  • Areas of interest when it comes to menu and restaurant concepts
  • Attitudes toward using tech at foodservice
  • The perceived impact of social media influencers
  • Perceptions related to value at foodservice

Following the pandemic, foodservice is now challenged to navigate an uncertain economy with streamlined operations and menu variety to meet evolving demands.

Joel Gregoire, Associate Director of Food & Drink Reports

Table of Contents

  1. Executive summary

    • What you need to know
    • Consumer trend #1: dinner may be prime time for foodservice, but other dayparts bolster usage
    • Consumer trend #2: social media's influence on menu innovation requires perspective
    • Consumer trend #3: rumours of on-premises' demise have been greatly exaggerated
    • Market predictions
    • Opportunities
  2. Consumer Insights

    • Consumer fast facts
    • Types of restaurants dined at or ordered from
    • Fast food leads, but consumers still value experience
    • Graph 1: types of restaurants dined at or ordered from in the past three months, 2024
    • Even with higher prices, foodservice is better positioned versus 2022
    • Graph 2: types of restaurants dined at or ordered from in the past three months, 2022 vs 2024
    • Millennials' preference for fast casual points to demand for elevated convenience
    • Graph 3: types of restaurants dined at or ordered from in the past three months, by generation, 2024
    • Taking it to the streets: food trucks satisfy the needs of new Canadians
    • Graph 4: types of restaurants dined at or ordered from in the past three months, new Canadian vs overall, 2024
    • QSR needs to be compelling and crave-able to those working from home
    • Graph 5: types of restaurants dined at or ordered from in the past three months, by work location, 2024
    • Be creative to attract remote workers
    • Full-service restaurants feel the heat in a volatile economy
    • Graph 6: types of restaurants dined at or ordered from in the past three months, by financial situation, 2024
    • Foodservice usage by type
    • Popularity of off-premise should inform investment in on-premise occasions
    • Graph 7: how foodservice was used in the past three months, 2024
    • On-premise is far from dead
    • Graph 8: how foodservice was used in the past three months, 2022 vs 2024
    • Generational usage patterns reinforce off-premise's importance
    • Graph 9: how foodservice was used in the past three months, by generation, 2024
    • Younger generations' preference for online ordering highlights the need for investment in this space
    • Lower-income individuals are more likely to opt for grab-and-go or delivered meals
    • Graph 10: how foodservice was used in the past three months, by financial situation, 2024
    • Cross-promotions as a point of difference can enhance delivery apps' value
    • With delivery in demand among parents of younger children, operators can help provide avenues for family time
    • Graph 11: used delivery in the past three months, by age of children in household, 2024
    • Working from home impedes drive-thru usage and highlights importance of multiple paths to purchase
    • Graph 12: used drive-thru in the past three months, by work location , 2024
    • Regional dynamics influence how foodservice is used
    • Graph 13: how foodservice was used in the past three months, by region, 2024
    • Foodservice occasions
    • Develop occasions outside of the core dinner daypart
    • Graph 14: occasions when foodservice is used, 2024
    • Connect with Gen Zs using PM snacks
    • Graph 15: occasions when foodservice is used, by generation, 2024
    • Woo hybrid workers at breakfast and lunch
    • Graph 16: occasions when foodservice is used, by work location, 2024
    • Connect with new Canadians using evening snacks
    • Graph 17: occasions when foodservice is used, new Canadians vs overall, 2024
    • Late night menus: are they worth it?
    • It's harder to use snacks to drive foodservice traffic in Quebec
    • Graph 18: occasions when foodservice is used, Quebec vs overall, 2024
    • Drive frequency at foodservice with snacks
    • Graph 19: how often restaurants are used by occasion in an average week by occasion, 2024
    • Younger generations offer a path to generating higher usage
    • Graph 20: share of consumers who use foodservice three times or more by occasion in an average week, by generation, 2024
    • Traffic driving motivators
    • Lead with value for growth
    • Graph 21: traffic driving motivators, 2024
    • Value extends beyond price
    • Eliminate ordering hurdles to win over younger generations
    • Graph 22: traffic driving motivators, by generation, 2024
    • Provide easier ways to order to manage parents' stress levels
    • Graph 23: easier ordering options to motivate dining out frequency, by age of children in household, 2024
    • Price, promotion, health and novelty prove less effective with Quebecers in promoting traffic
    • Graph 24: traffic driving motivators, Quebec vs overall, 2024
    • Restaurant visitation deterrents
    • It's nearly impossible to grow traffic while ignoring value's importance
    • Graph 25: what discourages visiting or ordering from restaurants more often, 2024
    • Those working remotely require greater incentive to leave home to eat
    • Graph 26: what discourages visiting or ordering from restaurants more often, by work location, 2024
    • Place greater focus on low prices in Western Canada
    • Graph 27: price/expense deters ordering, by region, 2024
    • Financial health provides more room to absorb higher menu prices
    • Graph 28: price/expense deters ordering, by financial situation, 2024
    • Appeal to younger women with assurances around ingredient quality
    • Graph 29: less control over ingredients used deters ordering, younger women vs overall, 2024
    • Interest in menu concepts
    • Peak interest with locally-made menu items
    • Graph 30: interest in menu concepts, 2024
    • Lean on local for older consumers, while a variety of options resonates with younger generations
    • Graph 31: interest in menu concepts, by generation, 2024
    • Mocktails address younger generations' growing preference for non-alcoholic beverages
    • Provide an edge with brain-focused nutrition
    • Connect with new Canadians on brain health…
    • Graph 32: interest in menu concepts, new Canadians vs overall, 2024
    • …and with parents of children and teens
    • Graph 33: interest in the menu items with ingredients that support brain health, by age of children in household, 2024
    • Woo women with smaller portions that convey flexibility
    • Graph 34: interest in menu concepts, men vs women, 2024
    • Snacks are less likely to grab Quebecers' attention at foodservice
    • Graph 35: interest in menu concepts, by region, 2024
    • Interest in restaurant concepts
    • Themes help restaurants stand out. Tech-based solutions enhance convenience with flexibility
    • Graph 36: interest in restaurant concepts, 2024
    • Ride the zeitgeist wave with themes
    • Gen Zs and Millennials are much more open to new and different concepts
    • Graph 37: interest in restaurant concepts, by generation, 2024
    • Fun and ease resonate with parents of young children
    • Graph 38: interest in restaurant concepts, by age of children in household, 2024
    • Attitudes toward using kiosks
    • Kiosks win more on speed than experience
    • Graph 39: attitudes towards kiosks at foodservice, 2024
    • Enhancing consumer choice: kiosks help customize ordering experiences
    • Kiosks give time back to younger diners as well as operators
    • Graph 40: attitudes towards kiosks at foodservice (any agree), by generation, 2024
    • Kiosks provide more ways to communicate and connect with new Canadians
    • Graph 41: attitudes towards kiosks at foodservice (any agree), new Canadians vs overall, 2024
    • Attitudes toward technology and foodservice
    • Apps are essential in today’s foodservice environment
    • Loyalty rewards are an key conduit through which consumers embrace technology at foodservice
    • Graph 42: attitudes towards technology at foodservice, 2024
    • Foodservice and technology are more deeply interconnected for younger generations
    • Graph 43: attitudes towards technology at foodservice (any agree), by generation, 2024
    • Remove barriers in cities with the ability to make reservations with apps
    • Graph 44: more likely to make reservations at restaurants when it can be done on an app (any agree), by area, 2024
    • Technology enables savings and convenience regardless of financial situation
    • Graph 45: attitudes towards technology at foodservice (any agree), by financial situation, 2024
    • The added ease technology provides matters most to parents with young children
    • Graph 46: attitudes towards technology at foodservice (any agree), by age of children in household, 2024
    • Dialogue between parent and kid at a drive-thru
    • The plight of parents when ordering
    • Attitudes toward international trends and influencers at foodservice
    • Social media has limited influence on foodservice trends…
    • Graph 47: attitudes towards international cuisines and social media trends at foodservice, 2024
    • …but (as expected) influencers carry more sway with younger generations
    • Graph 48: attitudes towards international cuisines and social media trends at foodservice (any agree), by generation, 2024
    • Influencers can help restaurant brands connect with new Canadians
    • Graph 49: attitudes towards international cuisines and social media trends at foodservice (any agree), new Canadians vs overall, 2024
    • Operators can take inspiration from influencers on a range of platforms
    • Graph 50: "I'd like to see restaurants incorporate more of the trends I see from social media influencers" (any agree), visit select social media websites weekly, 2024
    • From screen to table: restaurants can harness social media trends for buzz-worthy menu innovation
    • Attitudes toward ease
    • Reinforce routine to solidify and build traffic
    • Graph 51: attitudes towards routine and convenience, 2024
    • QSRs need to be wary of competition from grocers
    • Promote takeout as solutions for dinners that are yet to be decided
    • Graph 52: "ordering takeout delivery on an app is a good option when I can't decide what to make for dinner" (any agree), by generation, 2024
    • Give parents of young children a helping hand with nightly takeout suggestions
    • Graph 53: "ordering takeout delivery on an app is a good option when I can't decide what to make for dinner" (any agree), by age of children in household, 2024
    • 'City-dwellers' heightened access to takeout makes it a more viable option
    • Graph 54: "ordering takeout delivery on an app is a good option when I can't decide what to make for dinner" (any agree), by location, 2024
    • Attitudes toward foodservice and value
    • Most believe value for money at foodservice has dropped
    • Graph 55: attitudes towards value at foodservice, 2024
    • Revaluating value: concerns grow among traditionally affordable operators
    • McDonald's considering $5 meals deals (in the US)
    • Gen Zs are least likely to observe shifts in perceived value
    • Graph 56: attitudes towards value at foodservice (any agree), by generation, 2024
    • Value-related concerns are less dramatic in Quebec
    • Graph 57: attitudes towards value at foodservice (any agree), Quebec vs overall, 2024
  3. Competitive strategies

    • Marketing and advertising
    • Use menu hacks to introduce international dishes
    • Will climate change's increasing impact erode seasonality's importance?
    • Is dynamic pricing a 'third rail' for foodservice?
    • Opportunities
    • Foodservice is not immune from AI's growing impact
    • The case for AI robots in restaurants
    • The case against AI robots in restaurants
    • Are consumers concerned about privacy when it comes to AI at foodservice?
    • McDonald's becomes WcDonald's, launches anime-inspired manga campaign
    • Will Gen Alpha's rise impact the importance of restaurant spaces?
    • Smaller footprints for smaller overhead in a more digitized world
    • Are ghost kitchens dead and buried?
  4. The Market

    • Market context
    • Foodservice sales are in a much better place compared to 2020/21
    • Graph 58: monthly food services and drinking places sales, 2019-24
    • Balancing act: the equitable split between limited and full-service restaurants demonstrates industry diversity
    • Graph 59: percentage breakdown of food service places sales by industry classification, 2023
    • Category splits have regained equilibrium
    • Graph 60: percentage breakdown of food service places sales by industry classification, 2019, 2021, 2023
    • Inflation at foodservice remains elevated, but it's past its peak
    • Graph 61: year over year foodservice inflation, 2019-24
    • Market drivers
    • Overall CPI hovers around 3%. Retail food prices see a sharp year-over-year drop
    • Graph 62: annual change in CPI and retail food prices by month, 2019-24
    • Canadians look to cut back on eating out for their financial well-being
    • Graph 63: actions consumers have taken over the past two months, March 21-April 4, 2024
    • Commitment to cutting back on dining out remains steady
    • Graph 64: percent of consumers who "cut back on dining out/other leisure activities" over the past two months, 2023-24
    • Canada's economy by the numbers
    • Working from home is further entrenched with the rise hybrid work arrangements
    • Graph 65: work locations of employed Canadians, 2022, 2023 and 2024
    • Immigration fuels Canada's population growth
    • Graph 66: annual immigration targets, 2024 – 2026
    • India dominates as the main source of immigration
    • Graph 67: permanent residents admitted by top 10 source countries, 2022
  5. Appendix

    • Consumer research methodology
    • Consumer qualitative research
    • Generations
    • Abbreviations

Why Mintel?

Gain access to high quality market research with every purchase of Mintel’s consumer reports. Here's what else you can expect when buying from us:

Mintel’s Clients Portal

After your purchase is completed, you’ll receive an invitation to join Mintel’s Clients Portal which provides instant access to supplementary insights from Mintel’s industry experts.

Multiple Report Formats

Mintel’s reports are available in PDF and PPT formats, and arrive in your inbox alongside an excel datasheet, so you can share Mintel’s market intelligence with ease.

Interactive Databook

Mintel’s bespoke consumer data is presented as an interactive website, so you can deep dive into your chosen topic, explore demographics and download specific statistics.

Custom Presentations

Using Mintel’s custom presentation tool, you can easily incorporate selected research data and analysis into a tailor-made presentation to win over clients and stakeholders.

Browse our sample PDF report below:

Click to show report
2024 Sample Consumer Cover

Please Note: All of the figures, graphs, and tables in this sample report have been redacted.

Trusted by companies. Big and small.

Want to speak to us directly?

Contact us with your enquiry and our expert global team can help.

Get in touch