Canada has one of the most active consumer markets in regards to their consumption of food, particularly fast food, ranking only 2nd to the United States and to the whole world. In 2012, Canada’s fast food industry only had a modest 2% market growth that earned a total of $21.7 billion Canadian dollars, added to this, the number of food establishments saw a 3% decline resulting from the slow movement of the economy’s financial recovery. This was probably caused by budget constrains or a control thereof, Canadians have taken to themselves to reduce their expenditure in regards to dining and eating out. Fast food products and services are among the most prevailing commodities that Canadians spend on, that they unconsciously spend 30% of their total annual budget on fast food and other related aspects of products and services, which is probably why they rank 2nd only to the United States that spends 42% of their earnings on the same.
Most Canadians are more inclined to purchase bakery and pastry products along with such fast food items such as hamburgers and pizzas as well, which constitutes a large segment of the fast food industry. This segment of the fast food market does not include food establishments such as restaurants that offer regular and fine dining meals, yet it still manages to pull in an average yearly revenue of between $7.1 to $9 billion Canadian dollars. Maybe it’s because that fast food establishments offer a more convenient and quicker means of availing an instant meal, that it became a very reasonable option for most Canadians to patronize their services, compared to establishments that will make you wait your turn before you get what you ordered.
In recent years, the fast food industry has become a stable Canadian commodity, though there were no substantial improvements in it’s economic growth due to the fact that the slow recovery of the economy never really lead to any higher demands of it’s services, it nevertheless continued to flourish. In recent years, Canadians have started to become more responsive in terms of keeping a watchful eye on their dietary intake which could have been influenced by such factors as choices in the food that they eat or budgetary constraints. Nevertheless, there was a big trend that ensued following a steady change to their preferences as they now began to consume certain type of food products which evolved around ethnic cuisines and regional food specialties.
Today, Canadians are beginning to comeback to the conventional comforts of casual dining. Restaurants and establishments such as cafés, casual and fine dining restaurants and bars offer more variety and choices. These establishments also offer an ambiance that is favorable to most people compared to the noisy fast food establishments that are sometimes densely overcrowded. It was no surprise that in 2012, the fast food industry did not see any relevant growth in regards to sales as it did in the past 2 years before as it resulted from Canadians taking reign over their budget expenditure. It was also caused by the change in regards to the food preference that most Canadians were usually consuming at a daily basis, as new food establishments soon gave more and more people new food choices such as specialty restaurants that offer a diversified selection of regional cuisines such as Mediterranean, Middle Eastern and the more popular Chinese cuisine.
In Canada, particularly in Montreal, there is now a resurgence of on-line restaurants that offer a variety of ethnic and regional cuisines that were not available 10 years ago, as most on-line food services back then, only offered common Western style food products such as hamburgers and pizzas. The on-line availability of specialized regional cuisines further inhibited the regular fast food outlets that served the usual array of food items to make any sort of relevant industry growth as it gave people more choices, which took some of it’s market share along with it. Such on-line food delivery services such as Delivery Montreal which operates a website called Just Eat Montreal, offers customers a wide variety of on-line food service delivery that caters to other specialty cuisines.
The diversity of other food service establishments did affect in one way or the other the preference of most Canadians who were used to avail meals at fast food establishments. Nevertheless, some fast food industry conglomerates such as Tim Horton’s who continues to lead the domestic fast food industry chains even ahead of well known global giants such as McDonald’s, still continue to rank first in terms of over all sales. Big fast food chains such as these dominate a 26% annual share in all earnings which is more than the 11% that is held by McDonald’s. Nevertheless, Horton’s and McDonald’s still manage to earn and increase their marginal sales growth at the expense of smaller fast food establishments, Tim Horton’s on the other hand manages to lead the industry due to the fact that it has 39% percent more sales outlets than any other company in Canada, which gets them a stable 10% percent share of the total market.
Other big fast food companies such as Subway, have earned a number three spot on the fast food market. Subway came in second in the total number of operating outlets in Canada which had a captured market earning them a 5% percent over all market share, which places them comfortably in third place. Canada’s fast food industry is expected to continue a 1% percent growth which is expected to earn a total sales revenue of approximately $23 billion Canadian dollars by 2017. there is also a projected estimate that there will also be a decrease in smaller fast food outlets, namely those establishments that will eventually be overrun by more popular fast food companies in their locality.
During this period, independent fast food establishments will remain practically static in regards to revenue growth. This might make independent fast food operators look for other means of increasing sales and profit and might even make it more difficult for other new comers to establish themselves in a constantly growing industry that is dominated by gigantic conglomerates who have the convenience of billions of dollars on their hand to easily carve a secure place for themselves in a very competitive industry such as this.