The latest data from the Office of the Superintendent of Bankruptcy paints a grim picture for Canada’s foodservice industry. In May, there were another 66 bankruptcies in the foodservice/accommodation industry compared to 29 in May 2022. This represents a staggering 127.6% increase over May 2022.
In just the first five months of 2023, there were 303 bankruptcies in the foodservice industry. Looking back, the foodservice industry has not experienced more than 300 bankruptcies in the first five months of the year in more than a decade. In 2022, bankruptcies didn’t surpass the 300-unit mark until August of that year. In 2021, it took until November of that year to surpass 300 bankruptcies.
The 303 bankruptcies is the highest of any industry in 2023 and represent an 89% increase over the first five months of 2022. By comparison, the number of bankruptcies for all other industries increased by just 30%.
As the Chief Economist and Vice President, 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 $100-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 Degree in Economics and specializes in economic modeling and forecasting.