ARTICLES

Higher menu prices take a bite out of real foodservice sales growth

(April 15/18): Commercial foodservice sales in 2018 are forecast to advance by a solid 4.6 per cent to a record $71.5 billion. Restaurants Canada’s latest forecast reflects updated economic conditions and includes the impact of higher menu prices.

The top-line growth in foodservice spending represents a slight moderation following several years of strong gains. This is due to slower real GDP and disposable income growth combined with high household debt levels.

While the sales outlook is an important indicator on the health of Canada’s foodservice industry, it’s critical to take into account menu inflation. Due to a jump in menu prices in Ontario as a result of Bill 148, menu inflation in Canada is forecast to accelerate from 2.6 per cent in 2017 to 3.9 per cent in 2018. After adjusting for menu inflation, real sales in Canada will expand by just 0.6 per cent — the weakest increase since 2011.

To find out more, members can download a copy of the Q2 Quarterly Forecast here.

(Nov. 5/17) Restaurants Canada’s latest Q3 Restaurant Outlook Survey shows how deeply concerned foodservice operators are about minimum wage increases. Nationally, 85% of operators said that labour costs are the number one issue for their business. By contrast, food costs…
(Oct. 5/17) Commercial foodservice sales in Canada are projected to grow by a solid 4.9% in 2017 according to Restaurants Canada’s latest Restaurant Industry Forecast. This follows a robust 6.2% increase in 2016. Due to stronger-than-expected consumer spending, the outlook…
(July 26/17) Faced with the threat of skyrocketing labour costs, many operators now feel uncertain about the future of their business. In Restaurants Canada’s latest Restaurant Outlook Survey, the share of foodservice operators that are optimistic about the next 12…
(June 29/17) Although menu prices have stayed on track with Restaurants Canada’s fall forecast, things could change. Menu prices in the first five months of 2017 rose 2.4% compared to the same period in 2016. By way of comparison, menu…
(May 5/17) To stand out in today’s competitive environment, Canadian restaurant operators are turning to technology in a big way. From building stronger connections with guests, to providing them with more payment options, here are the top technology trends according…
(Apr. 6/17) It was cold outside, but nothing could put a damper on overall restaurant sales. Canada’s foodservice industry began the year on a strong note, with sales rising 4.4% in January 2017 over January 2016. Real sales increased by…
(March 8/17) Total employment in Canada’s foodservice industry rose to a record 1,244,600 in 2016, according to Statistics Canada’s Labour Force Survey. Foodservice was among the top private-sector job creators in 2016 with employment rising by 11,000 jobs, which is…
By Chris Elliott, Senior Economist (Jan. 26/17) Labour concerns are the biggest issue facing foodservice operators. According to Restaurants Canada’s latest Restaurant Outlook Survey, labour costs had a negative impact on 72% of foodservice operators in Q4 of 2016. Labour…
By Chris Elliott, Senior Economist (Dec. 15/16) Here’s a nice holiday treat: 2016 has been a strong year of growth for Canada’s commercial foodservice industry, with sales bounding ahead by 8.2% in September compared to September 2015. Will this joy…
By Chris Elliott, Senior Economist   (Nov. 15/16) In recent months, there have been rumblings of a possible recession in the U.S. restaurant industry. Will Canada follow suit? It’s not likely, but there’s no question the industry is facing stiff…
By Chris Elliott,
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VIDEOS

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Restaurant Industry Forecast Video Series (2015 – 2019)

Meet our Long Term Forecast! If you’re interested in what’s to come in the Restaurant Industry, then join Restaurants Canada’s Senior Economist, Chris Elliott as he gives us a sneak peek preview of the economic climate in Canada in this short teaser.

If you’re interested in learning more, the full series is available here. Free for members!