The Canadian food industry is thriving on the basis that eating out is a popular past time and an integral part of socialization (for both business and pleasure). The restaurant hospitality industry is diverse and illustrates the variety of cuisine available in Canada's territories.
The Food and Beverage sector in Canada generates more than $112 Billion in production value, making it Canada's second largest manufacturing industry.
“Unlike U.S. consumers, Canadians continue to include eating at restaurants as part of their lifestyle,” says Robert Carter, Senior Manager, NPD. "It would appear the convenience of restaurant meals is not a cut back consumers are willing to make."
The industry's 6,900 businesses directly employ more than 270,000 Canadians and represent more than 18% of the total manufacturing shipments in Canada.
The growth consists of 1% increase in numbers of visits and a 2% increase in the average spending in restaurants. Food retail is the leader at a 15% growth in traffic and spending. In addition, quick service brands are leading the restaurant sector with a reported 2% growth in spending, as Canadian diners begin seeking out affordable but healthy meals.
Quick service restaurants (QSR) are the fastest growing restaurant industry in Canada. According to IBISWorld, Canadian quick service restaurants have seen an annual growth of 2.8% over the past five years, while Canadian full service restaurants have experienced a 1.4% growth for the same period.
In Canada, there are more than 184,000 food service operators nationwide.
This is broken down to:
- 84,000 full-service restaurants
- 50,000 food retailers
- 5,000 drinking places
Major segments of food franchises include: QSR, bakery & donut franchises, coffee shop franchises, ice cream and frozen yogurt franchises, vegetarian & vegan food franchises, pizza franchises, and healthy snack vending machine franchises.
Trends and Facts About Food Franchises
Food Franchise in Canada
Investing in a food franchise in Canada is an ideal choice for creative, business-minded chefs looking to start their own business. A franchise provides an excellent opportunity for entrepreneurs to own a business in the food industry while enjoying the support of other franchise owners. Of all the Canada franchise opportunities out there, the food industry remains one of the most profitable. According to a 2022 report, 40% of the estimated 1,300 franchise systems in the current Canadian market are in the food industry.
The Canadian food industry is thriving on the basis that eating out is a popular past time and an integral part of socialization (for both business and pleasure). The restaurant hospitality industry is diverse and illustrates the variety of cuisine available in Canada's territories.
The Food and Beverage sector in Canada generates more than $112 billion in production value, making it Canada's second largest manufacturing industry.
“Unlike U.S. consumers, Canadians continue to include eating at restaurants as part of their lifestyle,” says Robert Carter, Senior Manager, NPD. "It would appear the convenience of restaurant meals is not a cut back consumers are willing to make."
The industry's 6,900 businesses directly employ more than 270,000 Canadians and represent more than 18% of the total manufacturing shipments in Canada.
The growth consists of 1% increase in numbers of visits and a 2% increase in the average spending in restaurants. Food retail is the leader at a 15% growth in traffic and spending. In addition, quick service brands are leading the restaurant sector with a reported 2% growth in spending, as Canadian diners begin seeking out affordable but healthy meals.
Quick service restaurants (QSR) are the fastest growing restaurant industry in Canada. According to IBISWorld, Canadian quick service restaurants have seen an annual growth of 2.8% over the past five years, while Canadian full service restaurants have experienced a 1.4% growth for the same period.
In Canada, there are more than 184,000 food service operators nationwide.
This is broken down to:
- 84,000 full-service restaurants
- 50,000 food retailers
- 5,000 drinking places
Major segments of food franchises include: QSR, bakery & donut franchises, coffee shop franchises, ice cream and frozen yogurt franchises, vegetarian & vegan food franchises, pizza franchises, and healthy snack vending machine franchises.
Franchising Versus Independent Businesses
In addition to having your own built-in franchise support system, you incur less risk when buying into an established business with strong branding and market awareness. Depending on the industry, you typically have to make an initial investment. Most franchises are transparent about fees, which means there are no hidden costs. When you buy into a franchise, you have access to logos, style guides, branding, and training guidelines. You also have operational support and purchasing power.
Here's where things differ somewhat from opening your own business. Owning an independent business means conducting your own market research, building your brand from scratch, and planning financially for any hidden costs. In a sense, you're an island with no support system. Moneylenders are often reluctant to give start-up loans to independent entrepreneurs — a lot of capital is needed for ingredients and kitchenware. However, being independent does mean you have more freedom in terms of creativity, business planning, and potential to start an original brand.
Why You Should Consider a Restaurant Franchise
According to market research, Canadians eat out more than Americans. Eating at restaurants and getting takeout is a lifestyle for Canadians, which is evident in stats that reveal 1.4% growth in restaurants and 2.8% growth in fast-service restaurants over 5 years. Because of the growth and reliable market, a restaurant franchise in Canada could be a good option. Also, restaurateurs in a franchise have a huge training network, preplanned menus, specials, and an established customer base.
How Much Does It Cost to Invest in a Franchise Restaurant?
The cost varies and is dependent on numerous factors, which include:
- Size of restaurant
- Training and marketing costs
- Brand
- Location
You're looking at a minimum starting cost of $20,000 for a snack-style franchise and $200,000 for an upscale restaurant.
Buying Into a Food Franchise in Canada
A food franchise is ideal for an entrepreneur who's passionate about food but has little business experience. Before investing in an affordable franchise opportunity in Canada, consider the location. Look for an area with an unsaturated market.
Consider the type of food franchise you'd like to invest in and the type of brand that resonates with you. Given the rise in popularity of food places in Canada and Canadians' desire to eat out, your franchise has a high chance of being profitable. The food-and-beverage industry is the second-largest manufacturing industry in Canada, with more than $112 billion made in production and over 184,000 food-service operators, which means abundant opportunities to invest in profitable franchises.
How Franchise Direct Can Help You Get Started
Franchise Direct can help you connect with a variety of profitable franchises within your chosen industry, and we have a host of resources to help you make an informed decision and get started. When you come across a franchise or two that interest you, add them to your cart, and send a detailed inquiry to franchise owners. Each franchise listing has a wealth of information, helping ensure you make a sound investment.