The revenue of the Food Services and Drinking Places industry in Canada increased consistently from 2013 to 2019, showing healthy annual growth rates of around 4-6%. However, the industry experienced a significant dip in 2020, with a year-on-year decline of nearly 25%, reflecting the severe impact of the COVID-19 pandemic. A strong recovery followed in 2021 and 2022, with annual growth rates exceeding 14%. By 2023, the industry reached $83.85 billion, an 8.7% increase from the previous year, largely restoring its growth trajectory. The compound annual growth rate (CAGR) for the last five years (2018-2023) stands at 2.21%.
Forecasts suggest continued growth from 2024 to 2028, albeit at a more moderate average annual growth rate (CAGR) of 2.3%, reaching approximately $96.92 billion by 2028. This growth is expected to accumulate to a total increase of 12.02% over the five years.
Future trends to watch for include increased consumer demand for sustainable and locally sourced foods, technological advancements in food delivery and contactless services, and potential economic fluctuations that could impact disposable income and spending on dining out. The industry should also monitor changing consumer preferences post-pandemic, such as the balance between dine-in experiences and online delivery services.
