Canada Foodservice Market Size and Share

Canada Foodservice Market (2026 - 2031)
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Canada Foodservice Market Analysis by Mordor Intelligence

The Canada foodservice market size is estimated at USD 0.15 trillion in 2026, and is expected to reach USD 0.32 trillion by 2031, at a CAGR of 16.17% during the forecast period (2026-2031). This acceleration reflects a structural shift in how Canadians consume meals outside the home, driven by the convergence of digital ordering infrastructure, delivery-only operating models, and a resurgence in socializing-driven dining after pandemic-era restrictions lifted. The sector recorded huge sales during 2024, supporting 1.2 million employees across chains and independents Restaurants Canada [1]Source: Restaurants Canada, "We are the voice of foodservice in Canada", restaurantscanada.org. Quick Service Restaurants (QSRs) retained price-led traffic, yet the fastest momentum now sits with cloud kitchens, chained outlets, and takeaway channels, all of which leverage technology and unit-level economics to scale.

Key Report Takeaways

  • By foodservice type, quick service restaurants held 53.04% of the foodservice market share in 2025; cloud kitchens are on track to post a 16.78% CAGR to 2031.
  • By outlet, independents controlled 63.55% of the foodservice market size in 2025, while chained outlets are forecast to expand at a 16.82% CAGR through 2031.
  • By location, standalone sites captured 72.38% of the foodservice market size in 2025 and will maintain an 18.06% CAGR to 2031.
  • By service type, dine-in claimed 55.84% of the foodservice market share in 2025; takeaway will accelerate at an 18.75% CAGR through 2031.

Note: Market size and forecast figures in this report are generated using Mordor Intelligence’s proprietary estimation framework, updated with the latest available data and insights as of January 2026.

Segment Analysis

By Foodservice Type: Cloud Kitchens Redefine Expansion Economics

Quick service restaurants held 53.04% of the market in 2025, underpinned by burger, pizza, and bakery formats that deliver speed and perceived value. McDonald's launched the Big Arch burger in August 2024, commercializing menu hacks that originated on social media, while Tim Hortons introduced pizza nationally in April 2024 to extend daypart coverage. Cloud kitchens, however, will expand at 16.78% CAGR through 2031, the fastest rate among all foodservice types, as operators eliminate front-of-house costs and concentrate capital on delivery radius and kitchen throughput. Full-service restaurants and café, and bars segments grow more slowly, constrained by higher labor intensity and real-estate commitments that limit unit-level returns.

DoorDash recorded year-over-year growth in breakfast orders and 36% in late-night transactions during 2024, evidence that delivery platforms are unlocking demand outside traditional meal windows. Cloud kitchens capitalize on this shift by operating extended hours without incurring front-of-house staffing costs, compressing payback periods, and enabling rapid concept testing. Full-service chains are driven by ethnic-cuisine differentiation and experiential dining, while independents and casual formats captured. Café and bars benefited from specialty-coffee proliferation, with Starbucks maintaining over 1,400 stores and Second Cup operating 190-plus locations, both investing in drive-through retrofits and mobile-order pickup lanes.

Canada Foodservice Market: Market Share by Foodservice Type
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

Get Detailed Market Forecasts at the Most Granular Levels
Download PDF

By Outlet: Franchise Scalability Drives Chain Growth

Independent outlets commanded 63.55% of the market in 2025, reflecting the fragmented nature of Canada's foodservice landscape and the appeal of hyper-local concepts. Chained outlets, however, will grow at 16.82% CAGR through 2031, outpacing independents due to franchise scalability, brand recognition, and access to capital for technology investments. Tim Hortons operated approximately 4,000 restaurants in Canada, while Starbucks maintained over 1,400 stores, both leveraging centralized supply chains and marketing budgets that independents cannot match.

Franchise models reduce capital intensity for parent companies while transferring operational risk to franchisees, enabling rapid geographic expansion. Chick-fil-A entered British Columbia, Ontario, and Alberta, targeting suburban corridors with drive-through-heavy formats that align with post-pandemic consumer preferences. Independent operators retain the flexibility to pivot menus and pricing in response to local demand, yet lack the purchasing power and technology infrastructure that chains deploy to compress costs and enhance customer experience. The bifurcation between chains and independents will intensify as digital ordering, loyalty programs, and data analytics become table stakes, favoring operators with scale and technical sophistication.

By Locations: Standalone Sites Capture Convenience Premium

Standalone locations accounted for 72.38% of the market in 2025 and will sustain an 18.06% CAGR through 2031, the fastest growth rate among all location types. Standalone sites offer drive-through access, ample parking, and visibility from arterial roads, attributes that align with suburban migration and car-dependent consumption patterns. Retail, lodging, and travel-linked locations grow more slowly, constrained by foot-traffic volatility and lease structures that limit operational flexibility.

Operators prioritize standalone sites for new builds, particularly in suburban and exurban markets where land costs remain manageable, and zoning permits drive-through configurations. Tim Hortons and McDonald's concentrated expansion in standalone formats, leveraging drive-through lanes to capture morning commuter traffic and evening takeaway orders. Retail locations within shopping malls faced headwinds as foot traffic declined, prompting chains to renegotiate leases or exit underperforming sites. Lodging and travel locations, airports, hotels, and highway rest stops recovered from pandemic lows but remain vulnerable to tourism fluctuations and business-travel reductions. The shift toward standalone sites reflects a broader preference for convenience and speed over experiential or impulse-driven dining.

Canada Foodservice Market: Market Share by Location
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.

Note: Segment shares of all individual segments available upon report purchase

Get Detailed Market Forecasts at the Most Granular Levels
Download PDF

By Service Type: Takeaway Gains from Convenience Prioritization

Dine-in service captured 55.84% of the market in 2025, sustained by socializing-driven consumption and experiential dining occasions that delivery cannot replicate. Takeaway, however, will grow at 18.75% CAGR through 2031, the fastest rate among service types, as consumers prioritize convenience and time savings over in-restaurant experiences. Delivery grew in tandem, supported by DoorDash's 20 million-plus active users in Canada and Uber Eats contributing a major share of Uber's global gross bookings.

Takeaway orders generate higher margins than delivery due to the absence of third-party commissions, prompting operators to invest in dedicated pickup lanes and mobile-order lockers. McDonald's and Starbucks prioritized drive-through and curbside pickup infrastructure, reducing transaction times and capturing incremental volume from time-pressed consumers. Dine-in service remains critical for full-service restaurants, where ambiance, table service, and beverage pairings justify premium pricing. Yet labor shortages and wage inflation compress dine-in margins, incentivizing operators to shift mix toward takeaway and delivery channels that require fewer front-of-house staff. The service-type bifurcation reflects a structural shift in consumer behavior, with convenience increasingly valued over experiential dining.

Competitive Landscape

Canada's foodservice sector exhibits moderate concentration, reflecting a fragmented landscape where regional specialists and independent operators coexist with multinational chains. Franchise models dominate expansion strategies, enabling parent companies to scale without capital intensity while transferring operational risk to franchisees. Tim Hortons, McDonald's, and Starbucks leverage centralized supply chains, national marketing budgets, and technology platforms that independents cannot replicate, yet hyper-local concepts and street-food vendors capture consumer attention through chef-driven menus and experiential storytelling. 

Chains respond by accelerating product-development cycles, launching limited-time offers, and embedding loyalty programs into mobile apps to create switching costs. Technology adoption intensified: 77% of operators increased investments in 2024, prioritizing point-of-sale upgrades, kitchen automation, and data analytics. White-space opportunities persist in suburban corridors, underserved ethnic cuisines, and delivery-optimized formats that eliminate front-of-house overhead. 

Restaurant Brands International invested up to USD 45 million in Tim Hortons China and Popeyes China, signaling confidence in international expansion even as domestic competition intensifies. Starbucks partnered with Too Good To Go across more than 2,600 Canadian locations, reducing food waste and appealing to sustainability-conscious consumers. Emerging disruptors include ghost-kitchen aggregators and virtual brands that test concepts rapidly without physical storefronts, compressing time-to-market and capital requirements. The competitive landscape will bifurcate further, with scale-advantaged chains consolidating share in high-traffic corridors while independents defend niche positions through differentiation and community engagement.

Canada Foodservice Industry Leaders

  1. Doctor's Associates, Inc.

  2. Inspire Brands Inc.

  3. McDonald's Corporation

  4. RECIPE Unlimited Corporation

  5. Yum! Brands Inc.

  6. *Disclaimer: Major Players sorted in no particular order
Canada Foodservice Market
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Need More Details on Market Players and Competitors?
Download PDF

Recent Industry Developments

  • November 2025: Heal Wellness also signed a new franchise agreement for Bradford, Ontario, reinforcing its asset-light, franchise-driven expansion strategy across Canada.
  • October 2025: Happy Belly Food Group’s healthy QSR brand Heal Wellness signed its first real estate location in Montreal, Quebec, planning a Q1 2026 opening, extending its footprint into a key provincial market.
  • April 2024: U.S. Italian QSR Fazoli’s entered the Canadian market with a franchise development agreement to open 25 restaurants across Canada over the next decade, targeting Alberta first with openings expected in 2025 as part of its first international expansion.

Table of Contents for Canada Foodservice Industry Report

1. INTRODUCTION

  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

3. EXECUTIVE SUMMARY

4. KEY INDUSTRY TRENDS

  • 4.1 Number of Outlets
  • 4.2 Average Order Value
  • 4.3 Regulatory Framework

5. MARKET LANDSCAPE

  • 5.1 Market Overview
  • 5.2 Market Drivers
    • 5.2.1 Acceleration of branded café formats and specialty coffee-chain rollout
    • 5.2.2 Progressive localization of menus by international operators
    • 5.2.3 Entrenched dine-out habits supported by socializing-driven consumption
    • 5.2.4 Rapid scale-up of dark-kitchen and delivery-only operating models
    • 5.2.5 Growing prominence of halal-compliant positioning in brand architecture
    • 5.2.6 High penetration and fluency of mobile-app-based ordering behavior
  • 5.3 Market Restraints
    • 5.3.1 Heightened competitive pressure from independents and street-food operators
    • 5.3.2 Variability in food-safety practices and hygiene compliance
    • 5.3.3 Rapid imitation of concepts leading to differentiation fatigue
    • 5.3.4 Reliability constraints in cold-chain and perishable logistics
  • 5.4 Porter’s Five Forces
    • 5.4.1 Threat of New Entrants
    • 5.4.2 Bargaining Power of Buyers
    • 5.4.3 Bargaining Power of Suppliers
    • 5.4.4 Threat of Substitutes
    • 5.4.5 Competitive Rivalry

6. MARKET SIZE AND GROWTH FORECASTS (VALUE)

  • 6.1 By Foodservice Type
    • 6.1.1 Café and Bars
    • 6.1.1.1 By Cuisine
    • 6.1.1.1.1 Bars and Pubs
    • 6.1.1.1.2 Café
    • 6.1.1.1.3 Juice/Smoothie/Desserts Bars
    • 6.1.1.1.4 Specialist Coffee and Tea Shops
    • 6.1.2 Cloud Kitchen
    • 6.1.3 Full Service Restaurants
    • 6.1.3.1 By Cuisine
    • 6.1.3.1.1 Asian
    • 6.1.3.1.2 European
    • 6.1.3.1.3 Latin American
    • 6.1.3.1.4 Middle Eastern
    • 6.1.3.1.5 North American
    • 6.1.3.1.6 Other FSR Cuisines
    • 6.1.4 Quick Service Restaurants
    • 6.1.4.1 By Cuisine
    • 6.1.4.1.1 Bakeries
    • 6.1.4.1.2 Burger
    • 6.1.4.1.3 Ice Cream
    • 6.1.4.1.4 Meat-based Cuisines
    • 6.1.4.1.5 Pizza
    • 6.1.4.1.6 Other QSR Cuisines
  • 6.2 By Outlet
    • 6.2.1 Chained Outlets
    • 6.2.2 Independent Outlets
  • 6.3 By Locations
    • 6.3.1 Leisure
    • 6.3.2 Lodging
    • 6.3.3 Retail
    • 6.3.4 Sandalone
    • 6.3.5 Travel
  • 6.4 By Service Type
    • 6.4.1 Dine-in
    • 6.4.2 Takeaway
    • 6.4.3 Delivery

7. COMPETITIVE LANDSCAPE

  • 7.1 Market Concentration
  • 7.2 Strategic Moves
  • 7.3 Market Share Analysis
  • 7.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products and Services, and Recent Developments)
    • 7.4.1 Subway IP LLC
    • 7.4.2 Boston Pizza International Inc.
    • 7.4.3 Doctor’s Associates, Inc.
    • 7.4.4 Domino’s Pizza Inc.
    • 7.4.5 Inspire Brands Inc.
    • 7.4.6 International Dairy Queen Inc.
    • 7.4.7 McDonald’s Corporation
    • 7.4.8 MTY Food Group Inc.
    • 7.4.9 Northland Properties Corporation
    • 7.4.10 Papa John’s International Inc.
    • 7.4.11 RECIPE Unlimited Corporation
    • 7.4.12 Restaurant Brands International Inc.
    • 7.4.13 Seven & I Holdings Co. Ltd
    • 7.4.14 Starbucks Corporation
    • 7.4.15 The Wendy’s Company
    • 7.4.16 Yum! Brands Inc.
    • 7.4.17 Foodtastic
    • 7.4.18 Franworks Group
    • 7.4.19 Cactus Club Cafe
    • 7.4.20 Mary Brown’s Chicken

8. MARKET OPPORTUNITIES AND FUTURE OUTLOOK

You Can Purchase Parts Of This Report. Check Out Prices For Specific Sections
Get Price Break-up Now

Canada Foodservice Market Report Scope

Foodservice refers to the business of preparing, serving, and selling ready-to-eat food and drinks for immediate consumption, encompassing diverse establishments like restaurants, cafes, catering, and institutions, focusing on providing meals outside the home for profit or service. The Canada foodservice market is segmented by foodservice type, outlet, service type, and location. By foodservice type, the market is segmented into cafes and bars, cloud kitchen, full-service restaurants, quick service restaurants and more. By outlet, the market is segmented into chained outlets and independent outlets. By location, the market is segmented into leisure, lodging, retail, standalone, and more. By service type, the market is segmented into takeaway, delivery and more. The market forecasts are provided in terms of value (USD).

By Foodservice Type
Café and Bars By Cuisine Bars and Pubs
Café
Juice/Smoothie/Desserts Bars
Specialist Coffee and Tea Shops
Cloud Kitchen
Full Service Restaurants By Cuisine Asian
European
Latin American
Middle Eastern
North American
Other FSR Cuisines
Quick Service Restaurants By Cuisine Bakeries
Burger
Ice Cream
Meat-based Cuisines
Pizza
Other QSR Cuisines
By Outlet
Chained Outlets
Independent Outlets
By Locations
Leisure
Lodging
Retail
Sandalone
Travel
By Service Type
Dine-in
Takeaway
Delivery
By Foodservice Type Café and Bars By Cuisine Bars and Pubs
Café
Juice/Smoothie/Desserts Bars
Specialist Coffee and Tea Shops
Cloud Kitchen
Full Service Restaurants By Cuisine Asian
European
Latin American
Middle Eastern
North American
Other FSR Cuisines
Quick Service Restaurants By Cuisine Bakeries
Burger
Ice Cream
Meat-based Cuisines
Pizza
Other QSR Cuisines
By Outlet Chained Outlets
Independent Outlets
By Locations Leisure
Lodging
Retail
Sandalone
Travel
By Service Type Dine-in
Takeaway
Delivery
Need A Different Region or Segment?
Customize Now

Market Definition

  • FULL-SERVICE RESTAURANTS - A foodservice establishment where customers are seated at a table, give their order to a server and are served food at a table.
  • QUICK SERVICE RESTAURANTS - A foodservice establishment that provides customers convenience, speed, and food offerings at lower prices. Customers usually help themselves and carry their own food to their tables.
  • CAFES & BARS - A type of foodservice business that include bars and pubs that are licensed to serve alcoholic drinks for consumption, cafes that serve refreshments and light food items, as well as specialty tea and coffee shops, dessert bars, smoothie bars, and juice bars.
  • CLOUD KITCHEN - A foodservice business that utilizes a commercial kitchen for the purpose of preparing food for delivery or takeout only, with no dine-in customers.
Keyword Definition
Albacore Tuna It is one of the smallest species of tuna found in the six distinct stocks known globally in the Atlantic, Pacific, and Indian oceans, as well as the Mediterranean Sea.
Angus beef It is beef derived from a specific breed of cattle indigenous to Scotland. It requires certification from the American Angus Association to receive the "Certified Angus Beef" quality mark.
Asian cuisine It includes full-service offerings in restaurants that serve cuisines from cultures such as Chinese, Indian, Korean, Japanese, Bengali, Southeast Asian, etc.
Average Order Value It is the average value of all orders made by the customers at a foodservice establishment.
Bacon It is salted or smoked meat that comes from the back or sides of a pig.
Bars & Pubs It is a drinking establishment that is licensed to serve alcoholic drinks for consumption on the premises.
Black Angus It is beef derived from a black-hided breed of cows that don't have horns.
BRC British Retail Consortium
Burger It is a sandwich consisting of one or more cooked beef patties, placed inside a sliced bread roll or bun roll.
Café It is a foodservice establishment serving various refreshments (mainly coffee) and light meals.
Cafes & Bars It is a type of foodservice business that include bars and pubs that are licensed to serve alcoholic drinks for consumption, cafes that serve refreshments and light food items, as well as specialty tea and coffee shops, dessert bars, smoothie bars, and juice bars.
Cappuccino It is an Italian coffee drink that is traditionally prepared with equal parts double espresso, steamed milk, and steamed milk foam.
CFIA Canadian Food Inspection Agency
Chained Outlet It refers to a foodservice establishment that shares brands, operates in several locations, has central management, and standardized business practices.
Chicken Tender It refers to chicken meat prepared from the pectoralis minor muscles of a chicken bird.
Cloud Kitchen It is a foodservice business that utilizes a commercial kitchen for the purpose of preparing food for delivery or takeout only, with no dine-in customers.
Cocktail It is an alcoholic mixed drink made with either a single spirit or a combination of spirits, mixed with other ingredients such as juices, flavored syrups, tonic water, shrubs, and bitters.
Edamame It is a Japanese dish prepared with soybeans (harvested before they ripen or harden) and cooked in its pod.
EFSA European Food Safety Authority
ERS Economic Research Service of the USDA
Espresso It is a concentrated form of coffee, served in shots.
European cuisine It includes full-service offerings in restaurants that serve cuisines from cultures such as Italian, French, German, English, Dutch, Danish, etc.
FDA Food and Drug Administration
Fillet Mignon It is a cut of meat taken from the smaller end of the tenderloin.
Flank Steak It is a cut of beef steak taken from the flank, which lies forward of the rear quarter of a cow.
Foodservice It refers to the part of the food industry which includes businesses, institutions, and companies which prepare meals outside the home. It includes restaurants, school and hospital cafeterias, catering operations, and many other formats.
Franks Also known as frankfurter or Würstchen, it is a type of highly seasoned smoked sausage popular in Austria and Germany.
FSANZ Food Standards Australia New Zealand
FSIS Food Safety and Inspection Service
FSSAI Food Safety and Standards Authority of India
Full service restaurant It refers to a foodservice establishment where customers are seated at a table, give their order to a server, and are served food at a table.
Ghost Kitchen It refers to a cloud kitchen.
GLA Gross Leasable Area
Gluten It is a family of proteins found in grains, including wheat, rye, spelt, and barley.
Grain-fed beef It is beef derived from cattle that have been fed a diet supplemented with soy and corn and other additives. Grain-fed cows can also be given antibiotics and growth hormones to fatten them up more quickly.
Grass-fed beef It is beef derived from cattle that have only been fed grass as feed.
Ham It refers to the pork meat taken from the leg of a pig.
HoReCa Hotels, Restaurants and Cafes
Independent Outlet It refers to a foodservice establishment that operates with a single outlet or is structured as a small chain with no more than three locations.
Juice It is a drink made from the extraction or pressing of the natural liquid contained in fruit and vegetables.
Latin American It includes full-service offerings in restaurants that serve cuisines from cultures such as Mexican, Brazilian, Argentinian, Colombian, etc.
Latte It is a milk-based coffee that is made up of one or two shots of espresso, steamed milk, and a thin layer of frothed milk.
Leisure It refers to foodservice offered as a part of a recreation business, such as sports arenas, zoos, movie theaters, and museums.
Lodging It refers to foodservice offerings at hotels, motels, guesthouses, holiday homes, etc.
Macchiato It is an espresso coffee drink with a small amount of milk, usually foamed.
Meat-based cuisines This inlcudes food items like fried chicken, steak, ribs, etc. where meat is the primary ingredient for the dish.
Middle Eastern cuisine It includes full-service offerings in restaurants that serve cuisines from cultures such as Arabic, Lebanese, Iranian, Israeli, etc.
Mocktail It is an non-alcoholic mixed drink.
Mortadella It is a large Italian sausage or luncheon meat made of finely hashed or ground heat-cured pork, which incorporates at least 15% small cubes of pork fat.
North American It includes full-service offerings in restaurants that serve cuisines from cultures such as American, Canadian, Caribbean, etc.
Pastrami It refers to a highly seasoned smoked beef, typically served in thin slices.
PDO Protected Designation of Origin: It is the name of a geographical region or specific area that is recognized by official rules to produce certain foods with special characteristics related to location.
Pepperoni It is an American variety of spicy salami made from cured meat.
Pizza It is a dish made typically of flattened bread dough spread with a savory mixture usually including tomatoes and cheese and often other toppings and baked.
Primal cuts It refers to the major sections of the carcass.
Quick service restaurant It refers to a foodservice establishment that provides customers convenience, speed, and food offerings at lower prices. Customers usually help themselves and carry their own food to their tables.
Retail It refers to a foodservice outlet inside a mall. shopping complex or a commercial real estate building, where there are other businesses operating as well.
Salami It is a cured sausage consisting of fermented and air-dried meat.
Saturated fat It is a type of fat in which the fatty acid chains have all single bonds. It is generally considered unhealthy.
Sausage It is a meat product made of finely chopped and seasoned meat, which may be fresh, smoked, or pickled and which is then usually stuffed into a casing.
Scallop It is an edible shellfish that is a mollusk with a ribbed shell in two parts.
Seitan It is a plant-based meat substitute made out of wheat gluten.
Self-service kiosk It refers to a self-order point-of-sale (POS) system through which customers place and pay for their own orders at kiosks, enabling totally contactless and frictionless service.
Smoothie It is a beverage made by placing all the ingredients in a container and processing them together, without removing the pulp.
Specialty coffee & tea shops It refers to a foodservice establishment that serves only various types of tea or coffee.
Standalone It refers to a restaurants that have an independent infrastructure setup and not connected to any other business.
Sushi It is a Japanese dish of prepared vinegared rice, usually with some sugar and salt, accompanied by a variety of ingredients, such as seafood—often raw—and vegetables.
Travel It refers to foodservice offerings such as airplane food, dining on long-distance trains, and foodservice on cruise ships.
Virtual Kitchen It refers to a cloud kitchen.
Wagyu Beef It is beef derived from any of four strains of a breed of black or red Japanese cattle that are valued for their highly marbled meat.
Need More Details on Market Definition?
Ask a Question

Research Methodology

Mordor Intelligence follows a four-step methodology in all our reports.

  • Step-1: Identify Key Variables: In order to build a robust forecasting methodology, the variables and factors identified in Step 1 are tested against available historical market numbers. Through an iterative process, the variables required for the market forecast are set, and the model is built on the basis of these variables.
  • Step-2: Build a Market Model: Market size estimations for the forecast years are in nominal terms. Inflation is considered for average order value, and it is forecasted as per predicted inflation rates in the countries.
  • Step-3: Validate and Finalize: In this important step, all market numbers, variables, and analyst calls are validated through an extensive network of primary research experts from the market studied. The respondents are selected across levels and functions to generate a holistic picture of the market studied.
  • Step-4: Research Outputs: Syndicated Reports, Custom Consulting Assignments, Databases & Subscription Platforms
research-methodology
Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0.
Get More Details On Research Methodology
Download PDF