Restaurants Canada has revised its outlook for total commercial foodservice sales for 2021 to $63.9 billion from the previous forecast of $61.1 billion. While the outlook for the first half of 2021 is in line with previous expectations, the outlook for the second half of the year is more hopeful.
Meanwhile, the outlook for 2022 is even more encouraging as overall commercial foodservice sales in Canada are forecast to grow to nearly $80 billion compared to the previous forecast of $75.9 billion.
The change in outlook is the result of a number of factors including:
- The vaccination rollout has picked up substantially since the release of our last Quarterly Forecast. Nearly 80% of Canadians 12 year of age and older have received at least one dose. As a result, Canada has among the highest vaccination rates in the world when it comes to first doses.
- The economic outlook has improved significantly. The Conference Board of Canada has raised its forecast for real GDP in 2021 from 5.8% to 6.7%. Retail sales are now forecast to climb by 11.2% in 2021, compared to the previous forecast of 6.3%. The unemployment rate is now forecast to fall to 6.3% by the fourth quarter of 2021 (the previous forecast was 7.0%).
- Restaurant sales are booming in the United States. The strong reopening of restaurants in the United States is a good indication of the pent-up demand for restaurants by consumers.
For more information and the latest forecast by segment, click here.