By Geoff Wilson
(May 16/17) fsSTRATEGY’s newly released 2017 Canadian Institutional Foodservice Market Report forecasts that institutional foodservice market sales increased by 1.3%, from $8.4 billion in 2015 to $8.5 billion in 2016. Sales are expected to grow by 2.0% to $8.7 billion in 2017. Combined, 2016 contracted and self-operated institutional foodservice was estimated to make up 10% of Canada’s $83-billion foodservice industry.
Contract caterers are expected to account for 45% of the institutional foodservice market in 2017 (a decrease of one percentage point), while self-operated institutional foodservice will make up 55% of the market.
Healthcare segment foodservice sales were estimated to account for 53% of total 2016 institutional foodservice sales, growing by 4.1% in 2016. Healthcare foodservice sales growth is fuelled by Canada’s aging population that is creating greater demand for retirement home space and related foodservice.
On the heels of a 29.7% decline in 2015, remote segment foodservice sales were estimated to have fallen a further 6.8% in 2016. This drop is directly attributable to the world decline in oil prices, which has reduced resource exploration, new resource projects, and head counts at remote sites (especially in Fort McMurray, Alberta). Pressure to reduce the cost of foodservices at remote sites is growing. Remote segment foodservice sales are expected to decline a further 3.9% in 2017. As remote sector foodservices are operated primarily by contract caterers, they are bearing the brunt of the sales declines.
Education segment foodservice sales were estimated to have grown by 1.3% in 2016. Enrollments in education segment institutions remained relatively flat or declined slightly in 2016; however, operators made strides in generating greater per capita revenues to maintain positive growth.
fsSTRATEGY has estimated the topline sales of the country’s institutional foodservice market for Restaurants Canada since 1999. The full report provides further insights, with sales estimates and trends for contract caterers and institutions operating their own foodservice, by segment:
Healthcare – retirement homes, long-term care, hospitals
Education – private schools, high schools, colleges, universities
Business dining – office and plant foodservices
Corrections – federal and provincial penal institutions
Transportation – ferries, cruise lines, trains, airlines
Remote –resource industries in remote parts of Canada
The report includes regional sales estimates by segment and sub-segment and estimates of food purchases in an easy-to-navigate format.
The report is a valuable reference for industry associations and governments who wish to track the scope and scale of the institutional market, industry suppliers seeking to understand their clients’ needs and market opportunities, and operators wishing to understand market share and industry trends.
Order your copy now
To purchase a copy of the 2017 Canadian Institutional Foodservice Market Report, contact Geoff Wilson at fsSTRATEGY at gwilson@fsSTRATEGY.com.
Regular price: $1,550 plus applicable taxes
Restaurants Canada member price: $1,395 plus applicable taxes
fsSTRATEGY is an alliance of senior consultants with diverse and comprehensive knowledge of the restaurant and foodservice industry. Whether you are a foodservice operator, landlord or supplier, fsSTRATEGY can help you define and achieve your strategic business objectives.
Contact fsSTRATEGY today, and discover how we can help you meet your goals – 416.229.2290.