2014 Canadian Institutional
Foodservice Market Report
February 2014
Abridged Sample
Table of Contents
Introduction ................................. 3
About fsSTRATEGY ................... 4
About this Study .......................... 5
Definitions .................................... 6
Important Notes About the Data ... 7
Changes for 2013/14 ……………. 8
Market Overview .......................... 9
Sales Analysis ............................. 18
Sector Profiles ............................ 24
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2014 Canadian Institutional Foodservice Market Report
INTRODUCTION
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About fsSTRATEGY Inc.
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fsSTRATEGY is an alliance of senior consultants focusing on business strategy support –
research, analysis, innovation and implementation – for the foodservice industry. Our team has
extensive consulting experience in foodservice across Canada. We also offer international
experience, having worked in the United States, Australia, South America, Africa, Asia, the
Caribbean and Europe. Our team is unique in that we provide service to all foodservice sectors
(chain and independent restaurants, attractions, hotels and resorts, gaming establishments and
institutions) and all levels of the foodservice supply chain (growers, processors, distributors and
operators).
Our team has extensive experience in institutional foodservice. We have provided advisory
services to hospitals, universities, 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.
This year’s report contains value-added information supplied by The NPD Group/CREST OnSite®.
We wish to express our appreciation to NPD for the opportunity to collaborate on this project.
fsSTRATEGY and NPD source their data in different ways and therefore, care should be used in
aligning the respective data points.
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About this Study
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The Canadian Institutional Foodservice Market Report provides an estimate of the size of the
Institutional Foodservice market in Canada.
Using Statistics Canada (“StatsCan”) definitions, this report defines Institutional Foodservice
sales as the combination of:
– sales of Contract Caterers (part of Contract and Social Caterers in the Commercial
Foodservice sector); and
– sales of Institutional Foodservice (foodservice sales in institutions where the institutions’ staff
members operate the foodservices – also know as Self-Operated Foodservices) (part of
the Non-Commercial Foodservice sector).
fsSTRATEGY has been conducting this analysis since 1999. Total Self-Operated Foodservice
sales are reported to Restaurants Canada and included in its estimate of total foodservice sales
for Canada.
We wish to acknowledge the support of Restaurants Canada and its provision of supporting data
for this report.
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Definitions
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Contract Caterers. This sector comprises foodservice operators primarily engaged in supplying
foodservices under contract for a specific period of time. This includes establishments providing
foodservices to airlines, railways and institutions as well as establishments operating food
concessions at sports and similar facilities. Contract caterers may provide additional services
such as housekeeping, janitorial/laundry as well as plant operation and maintenance.
Social Caterers. This sector, not tracked in this study, comprises establishments that provide onsite and off-site catering services and includes banquet halls, off-premise caterers and mobile
catering trucks.
Self-Operated Foodservice. Foodservices operated by organizations whose primary business is
something other than foodservice.
Healthcare. Foodservice for patients and residents at retirement homes, long term care facilities
(homes for the aged, nursing homes, personal care homes, group homes, etc.) and hospitals.
Corrections. Foodservice for inmates at provincial and federal correctional facilities.
Transportation. Food and beverage service for passengers on trains, ferries, airlines and cruise
lines.
Business & Industry. Foodservice for private- and public-sector employees in offices and plants.
Education. Foodservices for students, staff and faculty at private schools, high schools, colleges
and universities.
Remote. Foodservices for remote camps servicing mining, forestry, oil and gas, fire fighting,
hydro, road construction and rail maintenance. This sector also includes recreational summer
camps.
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Important Notes about the Data
History of the Report:
Up until 2009, this report was prepared by
Restaurants Canada (formerly the Canadian
Restaurant and Foodservices Association)
based on data researched by fsSTRATEGY.
Commencing in 2011, this report has been
researched and prepared by fsSTRATEGY.
Methodology:
Two sources have been used to compile this
report. Data on total Contract Caterer sales are
based on StatsCan’s Monthly Restaurants,
Caterers and Taverns Survey. Sales data on the
Self-Operated Foodservice sector and the
breakdown of sales of Contract Caterers are
based on interviews conducted by the
fsSTRATEGY team utilizing over one hundred
sources. These sources include self-operated
foodservice managers, contract caterers,
segment associations, government agencies,
trade publications and segment consultants.
The data for Contract Caterers is imputed from
the above two sources. Since no consistent
collection of data by foodservice sub-sector
exists, these sales figures should be considered
estimates rather than the actual size of the
market.
In conducting the interviews, fsSTRATEGY
requested information on trends seen by
respondents in their respective industry
segments. These trends are recorded in the
sector profiles starting on page 23.
Since 2011, Military and Coast Guard
foodservice sales have been estimated and
included in Other Foodservice sales, as reliable
data was not available for these groups.
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2014 Canadian Institutional Foodservice Market Report
MARKET OVERVIEW
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Sales by Segment ($ millions)
Commercial Foodservice
Full-Service Restaurants
Limited-Service Restaurants
Revenue from institutional foodservice by Contract Caterers excluding Contract Caterers (Excluding Open Camps)
open camps1 is expected to account for $3.6 billion of total contract
Social Caterers
and social caterer revenue. Contractor-operated open camp
Drinking Places
foodservice accounts for an additional $816 million. Self-operated
Sub-Total Commercial
institutional foodservice sales ($4.0 billion) are reported in nonNon-Commercial Foodservice
commercial foodservice.
Accommodation Foodservice
The total Institutional Foodservice market (excluding open camps) is
Institutional Foodservice
expected to grow to $7.7 billion in 2014, representing a 3.9% increase
Retail Foodservice
over 2013.
Other Foodservice
Combined contracted and self-operated institutional foodservice
Sub-Total Non-Commercial
excluding open camps is expected to account for 10.8% of Canada’s
Total Foodservice
Market Overview
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$71.1 billion foodservice industry in 2014.
Remote (Including Open Camps)
Education
Business Dining
Transportation
Corrections
Healthcare
5.0%
10.0%
15.0%
$5,886.0
$3,985.2
$1,229.4
$2,484.0
$13,584.6
$71,108.2
Note: All growth rates are in nominal terms
(unadjusted for inflation).
1. Open camps are remote sector
accommodation and foodservice
establishments developed and operated
directly by caterers as opposed to being
developed by resource companies and
operated under contract by foodservice
operators.
Total Institutional
0.0%
$25,271.3
$24,935.1
$3,673.1
$1,248.1
$2,395.9
$57,523.6
Source: Restaurants Canada, Pannell Kerr
Forster and fsSTRATEGY Inc.
Forecasted Change in Sales by Segment - SelfOperated and Contract Cateres Combined 2014/2013
-5.0%
2014
20.0%
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2014 Canadian Institutional Foodservice Market Report
SALES ANALYSIS
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Combined Self-Operated and Contract Caterers
Figures are in $’000,000s.
% Share = share of total sales
% Chg. = year-over-year change
Estimated Sales
COMBINED
2009
2010
% Share % Chg.
2011
% Share % Chg.
2012p
% Share % Chg.
2013p
% Share % Chg.
2014f
% Share % Chg.
% Share % Chg.
Healthcare
Retirement Homes
Long Term Care
Hospitals
Total Healthcare
Corrections
Total Corrections
Transportation
Total Transportation
Business Dining
Total Business Dining
Education
Private Schools
High Schools
Colleges
Universities
Total Education
Remote
Remote excl. Open Camps
Open Camps
Total Remote
Other
Total Other (1)
Total Combined excl. Open Camps
Total Combined
Estimate prepared by fsSTRATEGY
Notes:
(1) Includes sales estimates for subsectors for which data was not consistently available (e.g., Military and Coast Guard). Also includes the variance between fsSTRATEGY's estimates
and StatsCan's total Contract Caterer figures. Methodologies vary; therefore totals may vary. Figures are intended only to enable an overall mark et estimate.
P =preliminary; F=Forecast
Forecasts based on interviewee forecasts and fsSTRATEGY estimates.
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Self-Operated Foodservices
Figures are in $’000,000s.
% Share = share of total sales
% Chg. = year-over-year change
Estimated Sales
SELF-OPERATED
2009
2010
% Share % Chg.
2011
% Share % Chg.
2012p
% Share % Chg.
2013p
% Share % Chg.
2014f
% Share % Chg.
% Share % Chg.
Healthcare
Retirement Homes
Long Term Care
Hospitals
Total Healthcare
Corrections
Total Corrections
Transportation
Total Transportation
Business Dining
Total Business Dining
Education
Private Schools
High Schools
Colleges
Universities
Total Education
Remote
Remote excl. Open Camps
Open Camps
Total Remote
Other
Total Other (1)
Total Self-Operated excl. Open Camps
Total Self-Operated
Estimate prepared by fsSTRATEGY
(1) Includes sales estimates for subsectors for which data was not consistently available (e.g., Military and Coast Guard).
Figures are intended only to enable an overall mark et estimate.
P =preliminary; F=Forecast
Forecasts based on interviewee forecasts and fsSTRATEGY estimates.
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Contract Caterers
Figures are in $’000,000s.
% Share = share of total sales
% Chg. = year-over-year change
Estimated Sales
CONTRACT CATERERS
2009
2010
% Share % Chg.
2011
% Share % Chg.
2012p
% Share % Chg.
2013p
% Share % Chg.
2014f
% Share % Chg.
% Share % Chg.
Healthcare
Retirement Homes
Long Term Care
Hospitals
Total Healthcare
Corrections
Total Corrections
Transportation
Total Transportation
Business Dining
Total Business Dining
Education
Private Schools
High Schools
Colleges
Universities
Total Education
Remote
Remote excl. Open Camps
Open Camps
Total Remote
Other
Total Other (1)
Total Contract excl. Open Camps
Total Contract Caterers
Estimate prepared by fsSTRATEGY
Notes:
(1) Includes sales estimates for subsectors for which data was not consistently available (e.g., Military and Coast Guard). Also includes the variance between fsSTRATEGY's estimates
and StatsCan's total Contract Caterer figures. Methodologies vary; therefore totals may vary. Figures are intended only to enable an overall mark et estimate.
P =preliminary; F=Forecast
Forecasts based on interviewee forecasts and fsSTRATEGY estimates.
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2014 Canadian Institutional Foodservice Market Report
SECTOR PROFILES
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Healthcare – Retirement Homes Foodservices
Retirement Homes - Total Market
($ millions)
$1,400
$1,200
$1,000
$800
$600
$400
$860.5
$915.3
2010
2011
$1,079.5
$1,164.2
$1,205.5
2012
2013p
2014f
$200
$0
Segment trends highlighted by participants:
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Instead of building new facilities, operators have
been attempting to retrofit existing facilities. Many
old facilities have resident spaces that are too
small; therefore, they are combining two rooms
into one. There is also growing demand for highend accommodations.
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There will be a surge in construction of new homes
starting at the end of 2014 and this will continue
well into 2015.
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Emphasis on guest experience is becoming more
prevalent. Operators are emphasizing restaurant
style service, staff training in customer experience
and having their chefs out front with the residents.
This is in response to heavy competition.
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Menu diversity and ethnic foods, resident
choice/customization, menu flexibility, therapeutic
diets, improved presentation, seasonal, local and
sustainable products, healthy ingredient decks,
and resident centric care are all of increasing
importance.
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A greater emphasis on scratch production is
occurring.
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Operators are trying to improve operating margins,
as a result cost control is critical.
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fsSTRATEGY is an alliance of senior consultants focusing on business strategy
support-research, analysis, design and implementation-for the foodservice industry.
--The NPD Group has more than 25 years of experience providing reliable and
comprehensive consumer-based market information to leaders in the foodservice
industry.
For more information contact:
gwilson@fsSTRATEGY.com
416.229.2290 ext. 1
www.fsSTRATEGY.com
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written permission.
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