Canada Foodservice Market to Reach $135.52 Billion by 2033, Driven by Changing Eating Habits and Digital Ordering

Canada Foodservice Market Overview

The Canadian foodservice industry is entering a transformative decade. Valued at US$84.17 billion in 2024, the sector is projected to surge to US$135.52 billion by 2033, expanding at a compound annual growth rate (CAGR) of 5.43%. This growth reflects not just a rebound from past disruptions but also long-term shifts in how Canadians eat, order, and value their dining experiences. From bustling quick-service chains to upscale dining, food delivery apps, and institutional catering, the market has become an essential part of both the economy and daily Canadian life.

What Defines the Foodservice Sector in Canada?

Foodservice refers to the preparation and sale of food and beverages outside the household. In Canada, this broad category includes:

• Commercial establishments such as restaurants, cafes, caterers, quick-service restaurants (QSRs), and bars.
• Non-commercial services like institutional food providers in schools, hospitals, retail spaces, and corporate offices.

Beyond satisfying hunger, the sector drives employment, supports local agriculture, and showcases the country’s culinary diversity. Importantly, the industry also mirrors changing consumer preferences—from busy professionals seeking ready-to-eat meals to health-conscious diners demanding plant-based and sustainable options.

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Key Growth Drivers

1. Rising Demand for Convenience

Modern lifestyles are fueling the need for quick and accessible meals. Canadians increasingly lean toward ready-to-eat and fast service formats, supported by the boom in digital ordering and delivery apps such as Uber Eats, DoorDash, and SkipTheDishes. Especially in urban hubs like Toronto, Vancouver, and Montreal, convenience-first dining is becoming a norm.

2. Health and Wellness Preferences

The growing awareness around wellness is reshaping menus across Canada. More restaurants now highlight plant-based, organic, low-calorie, and allergy-friendly options, responding to demand from health-conscious consumers. This focus is not only a matter of nutrition but also a shift toward sustainable sourcing, as diners increasingly link their dietary choices to environmental impact.

3. Expansion of Delivery and Online Ordering

While food delivery was already on the rise, the COVID-19 pandemic accelerated consumer reliance on digital platforms. Delivery services have become a long-term habit, giving restaurants a broader reach and creating new revenue streams. Hybrid models—dine-in, pickup, and delivery—are now standard in the Canadian foodservice landscape.

Challenges Holding Back the Market

1. Staffing Shortages and Rising Employment Costs

Restaurants across Canada are grappling with labor shortages, especially for skilled roles like chefs, kitchen staff, and servers. This has driven up wages and training expenses, straining profitability even as demand rises. Staffing issues remain one of the industry’s biggest operational hurdles.

2. Supply Chain Disruptions and Cost Pressures

The sector also faces volatile ingredient costs and supply chain disruptions influenced by global trade uncertainties, inflation, and transportation bottlenecks. Essential items such as meat, dairy, and fresh produce often see fluctuating prices, forcing restaurants to either increase menu prices or absorb losses. This directly impacts both consumer affordability and operator margins.

Regional Insights

Ontario: The Culinary Powerhouse

Ontario dominates the Canadian foodservice market thanks to its large population and cultural diversity. Toronto, in particular, is a hotspot for both traditional and experimental cuisines, making the province a central hub for foodservice innovation. With strong consumer demand and a thriving urban population, Ontario is expected to hold the largest revenue share during the forecast period.

Nova Scotia: Seafood and Local Flavors

Nova Scotia’s foodservice industry thrives on its maritime heritage. Fresh seafood remains a cornerstone of local menus, appealing to both residents and tourists. Fine dining, casual eateries, and cafes all leverage the province’s strong culinary identity. While rising costs and labor shortages pose challenges, the province’s tourism-driven dining culture ensures steady growth.

Alberta: Beef and Beyond

Known for its beef industry, Alberta’s foodservice sector emphasizes locally sourced ingredients. The province offers a wide range of dining—from upscale restaurants to casual diners and fast-food outlets. While fluctuating oil prices influence consumer spending in Alberta, the rise of takeout and delivery services continues to support growth.

Saskatchewan: Farm-to-Table Trends

Saskatchewan’s foodservice industry benefits from its agricultural abundance, particularly grains, pulses, and beef. Farm-to-table concepts resonate strongly with local consumers. Delivery and takeout are gaining ground, though the province faces challenges like labor shortages and seasonal tourism impacts.

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Market Segmentation

By Restaurant Type

• Commercial Foodservice
• Quick-Service Restaurants (QSRs)
• Full-Service Restaurants
• Caterers
• Drinking Places

Non-Commercial Foodservice

• Institutional providers (schools, hospitals, corporate canteens)
• Accommodation-based foodservice
• Retail foodservice operations

This dual structure reflects how foodservice extends from dining out for leisure to essential services like healthcare and education.

By Province (13 Regions Covered)

The market spans every corner of Canada, including Newfoundland and Labrador, Prince Edward Island, Nova Scotia, New Brunswick, Quebec, Ontario, Manitoba, Saskatchewan, Alberta, British Columbia, Yukon, Northwest Territories, and Nunavut. Ontario and British Columbia lead in market share, while smaller provinces like PEI and territories such as Yukon show emerging potential tied to tourism and regional food culture.

Competitive Landscape

The Canadian foodservice market is highly competitive, with international chains and domestic players alike shaping consumer preferences. Leading companies include:

• Starbucks Corp.
• Domino’s Pizza Inc.
• McDonald’s
• The Wendy’s Co.
• Restaurant Brands International Inc. (parent company of Tim Hortons, Burger King, and Popeyes)
• A&W Food Services of Canada Inc.
• MTY Food Group Inc.
• Papa John’s International Inc.
• Performance Food Group Company
• Yum! Brands Inc. (KFC, Pizza Hut, Taco Bell)
• Berkshire Hathaway (indirect holdings in food distribution networks)

These brands are expanding their presence through menu localization, delivery partnerships, sustainability initiatives, and digital innovation. At the same time, independent restaurants and regional players continue to thrive by offering authentic, local experiences that global chains cannot replicate.

Future Outlook

Looking ahead, the Canadian foodservice market is poised for strong growth fueled by technology adoption, evolving consumer habits, and culinary innovation. Convenience and delivery will remain major drivers, while sustainability, health, and local sourcing will define competitive differentiation.

However, operators will need to address labor shortages, cost inflation, and supply chain uncertainties to fully capture this growth potential. Companies that strike the right balance between digital convenience and authentic dining experiences are likely to lead the market into the next decade.

Conclusion

The Canadian foodservice market is not just about restaurants—it is a reflection of shifting lifestyles, values, and consumer priorities. With its projected growth to US$135.52 billion by 2033, the industry will continue to play a central role in Canada’s economy and culture. From bustling urban QSRs to Nova Scotia’s seafood restaurants and Alberta’s beef-focused menus, the sector is diverse, resilient, and increasingly shaped by technology and consumer-driven change.

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