Canadian Food Is at the Heart of Canada’s Restaurant Industry
Every day, restaurants across the country turn food and agricultural products into meals served to millions of guests. Collectively, Canada’s foodservice industry purchases close to $43 billion in food and beverages each year. Approximately $29 billion of these purchases are sourced through Canadian farms, processors and suppliers, demonstrating the strong connection between Canada’s foodservice and domestic food sectors.
An estimated 68% of restaurant food and beverage purchases are sourced within Canada. Domestic sourcing is particularly strong for dairy products and cheese, chicken and beef, with Canadian sources accounting for more than 80% of restaurant purchases in these categories. Across most other food categories, at least half of restaurant purchases are supplied domestically.
That strong domestic footprint takes on added significance in the current trade environment. With Canada-U.S. trade tensions creating new costs and uncertainty across supply chains, restaurants’ purchasing decisions are increasingly affected by factors well beyond the price of food itself. Restaurants also rely on equipment, packaging and other operating inputs that move through highly integrated North American supply chains. Tariffs and trade disruptions affecting these products can add to the cost pressures facing restaurant operators.
Strong domestic supply chains make Canada’s restaurant industry more resilient and support Canadian farmers and producers. At the same time, there are products and inputs that cannot always be sourced domestically in sufficient quantities or at all. In those cases, predictable access to imports remains essential to restaurant operations and to keeping costs manageable for consumers.
Fresh produce is one example. Canada’s climate and growing seasons mean restaurants rely on imports to complement domestic production and maintain the year-round supply and variety consumers expect.
Taken together, these figures show the scale of the relationship between restaurants and Canadian farmers, food and beverage manufacturers, processors and suppliers, and the role restaurants play in translating domestic production into economic activity across the country. They also demonstrate why the restaurant sector cannot be viewed in isolation from Canada’s broader trading relationships.
As trade tensions continue, strengthening Canadian supply chains while maintaining reliable access to essential imports will be important to keeping restaurants competitive and managing costs for operators and consumers alike.
For more information and to stay ahead of the trends expected in 2027, read our newly released Foodservice Facts 2026 report here.
As the Chief Economist and Vice President of Research for Restaurants Canada, Chris Elliott manages and produces a comprehensive research program that has made Restaurants Canada a leading source of information for and about Canada’s $125-billion foodservice industry. Chris tracks and analyzes key industry and economic indicators and translates them into member reports and publications. He also provides research to support Restaurants Canada’s lobbying efforts on issues that affect foodservice operators – from payroll taxes to food costs.
Chris has worked with Restaurants Canada for over 20 years, has a Bachelor of Arts and Master’s Degree in Economics and specializes in economic modelling and forecasting.
