$1,500
CANADIAN
INSTITUTIONAL FOODSERVICE MARKET REPORT
2015
ABRIDGED SAMPLE ONLY
March 3, 2015
Prepared by fsSTRATEGY Inc.
416.229.2290
www.fsSTRATEGY.com
2015 Canadian Institutional Foodservice Market Report
Table of Contents
1
Introduction
1.1 About fsSTRATEGY
1.2 About the Canadian Institutional Foodservice Market Report
1.2.1
History
1.2.2
Methodology
1.2.3
Structure and Contents of the Report
1.3 Limitations of Use of the Report
1.4 Additional Services
2
The Canadian Institutional Foodservice Market
2.1 Breakdown of the Institutional Foodservice Market
2.2 Institutional Foodservice Sales Summary
3
Institutional Foodservice Sales and Trends by Segment
3.1 Healthcare
3.1.1
Retirement Homes
3.1.2
Long-Term Care
3.1.3
Hospitals
3.2 Remote Catering
3.3 Corrections
3.4 Transportation
3.5 Business Dining
3.6 Education
3.6.1
Private Schools
3.6.2
High Schools
3.6.3
Colleges (CEGEP)
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2015 Canadian Institutional Foodservice Market Report
3.6.4
Colleges (Community Colleges and Professional Schools)
3.6.5
Universities
3.7 Loyalty as a Driver of Traffic
4
Food Costs and Purchases
Appendix 1 – Glossary of Terms
Appendix 2 – Data Tables
Combined (Self-Operated and Contracted Institutional Foodservice)
Sales Summary
Year-Over-Year Percentage Change
Share of Total Institutional Foodservice
Regional Sales Summary
Self-Operated Institutional Foodservice
Sales Summary
Year-Over-Year Percentage Change
Share of Total Institutional Foodservice
Contracted Institutional Foodservice
Sales Summary
Year-Over-Year Percentage Change
Share of Total Institutional Foodservice
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1
Introduction
1.1
About fsSTRATEGY
March 3, 2015
fsSTRATEGY Inc. (“fsSTRATEGY”) is an alliance of senior consultants specializing in providing strategic
support and customized research to the foodservice industry. fsSTRATEGY provides business consulting
services to all levels of the foodservice Industry, from growers to operators, with substantial focus on
the Institutional Foodservice Sector. We have provided advisory services to hospitals, universities and
colleges, art galleries, museums, attractions, convention and trade facilities, remote sites, correctional
facilities, casinos and public and private sector employee dining facilities.
All of our key consultants are members of the International Society of Hospitality Consultants (“ISHC”)
and, as such, subscribe to the ISHC’s stringent code of ethics for consulting services.
fsSTRATEGY’s knowledge of institutional foodservice trends and operating practices make our company
a leader in operational reviews, foodservice master planning and business strategy development for
institutions across Canada.
1.2
About the Canadian Institutional Foodservice Market Report
1.2.1
History
The Institutional Foodservice Sales Report (the “Report”) is an annual estimate of size and scope of
institutional foodservice sales in Canada. Geoff Wilson and fsSTRATEGY have prepared the national
Report since 1999. The Report is used by Restaurants Canada (formerly the Canadian Restaurant and
Foodservices Association) as part of its Foodservice Sales Forecast. The Report is also used by a variety
of food processors, foodservice operators, foodservice distributor and government agencies for which a
comprehensive understanding of industry trends is critical to setting strategic direction.
In 2015, fsSTRATEGY made significant enhancements to the Report by adding regional market sales
estimates and other features that increase the usability and relevance of the data. The Report has also
undergone a formatting change that improves navigation and legibility.
1.2.2
Methodology
fsSTRATEGY’s sales estimate model combines statistical data from sources such as Restaurants Canada
and Statistics Canada with data and opinions gleaned from over 150 leading institutions, contract
caterers, group purchasing organizations, industry associations, municipal, provincial and federal
governments and other sources.
The institutional foodservice sales estimate excludes sales for branded concepts in order to avoid
overstating the size of the total foodservice market. Branded outlet sales from outlets in institutions are
included in the Restaurants Canada estimate for Commercial Foodservice (e.g., a coffee kiosk in a
hospital operating with a regional, national or international brand).
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fsSTRATEGY strives to provide the most accurate data possible. All data is subject to adjustment in
subsequent reports as forecasted data is replaced with actual sales, additional data becomes available
or third-party data sources are adjusted.
The Report contains value-added information supplied by The NPD
Group/CREST OnSite®. fsSTRATEGY wishes to express our appreciation to NPD
for the opportunity to collaborate on this project. As fsSTRATEGY and NPD
source their data in different ways, care should be used in aligning the
respective data points.
fsSTRATEGY also wishes to acknowledge the support of Restaurants Canada
and its provision of supporting data for this report.
Caution: This year, fsSTRATEGY has developed regional estimates of foodservice sales by market
segment. The added granularity and ability to weight data regionally has uncovered some anomalies
with previous data and adjustments have been made to the historical data accordingly. These
adjustments are noted in the Report. Caution should be used interpreting the changes from 2013 to
2014.
1.2.3
Structure and Contents of the Report
The Report is structured in a top-down format starting with an overview of the institutional market as a
whole, then branching into segments and sub-segments as appropriate.
Most segment and sub-segment contents include the following exhibits and information:
•
•
•
•
•
•
a definition of the segment/sub-segment;
Quick Facts for the most current year – highlighting key segment sales statistics;
the segment’s share of Institutional Foodservice market;
five-year sales trend by type of operator;
distribution of sales by region:
o West (including Manitoba, Saskatchewan, Alberta, British Columbia, and Territories);
o Ontario;
o Quebec;
o Atlantic (including New Brunswick, Newfoundland and Labrador, Nova Scotia and Prince
Edward Island); and
a summary of qualitative trends.
Where significant revisions were made to historical estimates, these changes have been explained.
1.3
Limitations of Use of the Report
By purchasing the Report, the buyer acknowledges that the Report may not be copied or shared with
any other party. The Report is for the express use of the buyer and team members within the buyer’s
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immediate organization only. The buyer may not quote data or analysis from the Report in any public or
private release without fsSTRATEGY’s written permission.
1.4
Additional Services
fsSTRATEGY provides a wide variety of services to the institutional foodservice market including, but not
limited to:
•
•
•
•
•
•
•
customization and interpretation of the data contained herein;
foodservice operational reviews;
foodservice master plans for institutions and contract caterer sites;
menu and servery engineering;
foodservice management options analyses;
request for proposal development and process support (if applicable); and
presentations and speaking engagements.
For additional information, please contact:
Geoff Wilson
Principal
gwilson@fsSTRATEGY.com
416.229.220 extension 1
fsSTRATEGY Inc.
Jeff Dover
Principal
jdover@fsSTRATEGY.com
416.229.2290 extension 2
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2015 Canadian Institutional Foodservice Market Report
2
The Canadian Institutional Foodservice Market
2.1
Breakdown of the Institutional Foodservice Market
March 3, 2015
The institutional foodservice market captures foodservice sales and expenditures related to
establishments where food is provided as a core requirement or benefit to a population, but is not a
direct component of that establishment’s core mandate. In the context of this Report, institutional
foodservice specifically refers to foodservice sales and expenditures in:
•
•
•
•
•
•
Healthcare:
o Retirement Homes;
o Long-Term Care Facilities;
o Hospitals;
Remote Camps for utilities and resources and summer camps for children;
Correctional Facilities:
o Federal Corrections;
o Provincial Corrections;
Transportation;
Business Dining in offices and factories;
Education:
o Private Schools;
o High Schools;
o Colleges; and
o Universities.
For the purposes of this Report, Institutional Foodservice includes foodservices provided by contract
caterers (included in Contract and Social Caterer sales in Commercial Foodservice data available from
Restaurants Canada) and foodservices provided by staff employed directly by staff working for
institutions (defined as Institutional Foodservice sales in Non-Commercial Foodservice data available
from Restaurants Canada). The following table highlights sales for these two segments as part of total
foodservice sales in Canada.
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1.
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Restaurants Canada tracks contract and social catering as a single line item using data from
Statistics Canada. fsSTRATEGY has estimated social caterers' share of contract and social
catering sales based on ratios obtained when Statistics Canada formerly tracked these market
segments separately. The combined totals of social catering and contract catering sales
estimate in this model is greater than the Statistics Canada figure for contract and social
catering due to variances in methodologies and definitions of market segments included in the
model.
Combined, self-operated and contracted institutional foodservice sales totalled over $8.9 million
representing 12% of total foodservice industry sales in Canada in 2014.
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2.2
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Institutional Foodservice Sales Summary
The following chart and table summarize fsSTRATEGY’s estimate of the size of the institutional
foodservice market in Canada broken down by contracted and self-operated foodservices from 2011 to
2015.
In 2015, institutional foodservice sales will have grown by 15% in five years from $7,747.6 million in
2011 to a forecasted $8,889.5 million. Approximately one half of the institutional foodservice market is
contracted.
The following chart summarizes the estimated change in contracted and self-operated foodservice sales
from 2013 to 2014.
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Change in Sales 2014p / 2013
3%
Healthcare
8%
4%
10%
Education
14%
13%
3%
Corrections
10%
5%
Self-Operated
-6%
Transportation
9%
Contracted
5%
4%
4%
4%
Business Dining
Total
7%
Remote -12%
-11%
3%
Total
-2%
1%
-15%
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-10%
-5%
0%
5%
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10%
15%
20%
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Institutional Foodservice Sales and Trends by Segment
3.1
Business Dining
March 3, 2015
2014 BUSINESS DINING QUICK FACTS
Total Sales: $ 426.3 Million
Percentage Contracted: 90.0%
Change From Previous Year: 3.9%
Share of Institutional Foodservice: 4.8%
The Business dining segment includes foodservice for private- and public-sector employees in offices
and plants.
Business dining sales represent 5% of total institutional foodservice sales.
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Size of the Market
After a decline in 2013, business dining revenues appear to have increased in 2014. Interviews with
participating operators reveal that they have been able to increase per capita revenues through menu
management strategies as a method to combat revenue losses due to the continuing declines in
populations in this segment. Business dining sales were estimated to have increased 3.9% in 2014 and
are expected to grow only nominally in 2015. No change in the extent of contracting is expected.
Key Trends
Trends identified by business dining foodservice operators include increasing focus on local sourcing,
growing demand for healthier food choices and increased consumer interest in ethnic food options.
Operators report rising food costs create challenges when it comes to buying local products at
competitive prices. Operators expect to increase their use of branded concepts, offer more cashless
payment options and, at the request of clients, are focusing on reducing the environmental footprint of
their foodservice operations.
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