Quick-service restaurant (QSR) outlets that offer alternatives to standard fast-food fare are likely see the greatest sales gains in the years ahead as full-service restaurants (FSRs) become less popular, according to the first annual Canadian Chain Restaurant Industry Review.
The research report was commissioned by GE Capital and compiled by fsSTRATEGY and NPD Group Canada.
Today, QSRs capture 64% of total foot traffic and 44% of all sales at commercial restaurants, while FSRs see 25% of traffic and 49% of industry dollars.
Ed Khediguian, GE Capital’s senior vice-president of franchise finance, said, “As the economy moves from recovery to expansion, Canadians are feeling somewhat less cautious about spending at restaurants.
“Restaurant operators who understand what consumers are looking for in their dining experience will be able to earn a greater share of wallet in the coming years. That includes high-quality fresh foods, smaller portions, healthier options and ethnic twists for those in urban centres who have sophisticated palates.”
The report forecasts that commercial foodservice traffic will grow by an average of 1.7% annually from 2012 through 2016, modestly outpacing annual population gains of 1.1%.
The most frequent users of restaurants remain Canadians aged 18 to 34, although their visits declined from 2008 to 2011. The only group that saw an increase in restaurant visits over that same period was those over 55 years of age, who are visiting QSRs more than before.
Canadian foodservice industry sales are expected to increase by 3.1% to $65.4 billion in 2012. The three fastest-growing QSR categories are frozen yogurt, Mexican and casual Asian formats.
Nationwide, more than 60% of restaurant sales in Canada can be attributed to chain operators.
B.C. has the second-greatest commercial foodservice sales per capita ($1,711.90).
