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Canada Foodservice Market Research│Outdoor Restaurants

This report is published by Coets, an outdoor dining furniture wholesaler from China, for its clients interested in the Canadian food service market and starting up and operating outdoor restaurant businesses.

The foodservice industry includes restaurants that offer a variety of prepared meals in a range of cuisines for consumption outside the comforts of home.

1.Market Summary

Canada’s Market Size

According to IBISWorld, the Canadian food service industry was worth CAD 90.2 billion in 2022 and is estimated to grow by 4.1% in 2023. Compared to the US market, Canada’s food service industry is smaller but growing faster.

Source: Statista

Ranking in the Service Industry

According to Statistics Canada, the food service industry is the fourth-largest service industry in Canada, accounting for 2.3% of GDP in 2021.


  • Increasingly, rich people hold private parties and use private catering services.
  • The customer life cycle increases due to customer loyalty to restaurant brands.
  • Restaurant owners are willing to expand their outdoor dining options.
  • Healthy eating habit is driving demand for plant-based menu options.
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2.Market Segmentation

By Sector Type

Full-service restaurants: restaurants that offer a full range of meals, including appetizers, main courses, desserts, and beverages, with table service. Examples include The Keg Steakhouse + Bar, Joey Restaurants, and Moxie’s Grill & Bar.

Quick-service restaurants: This category includes street stalls & kiosks, fast food chains, and convenience stores. Examples include McDonald’s, Tim Hortons, and Subway.

Self-service restaurants: This category includes buffets and cafeteria-style restaurants. Examples include Mandarin Restaurant and Swiss Chalet.

Cafes and bars: Cafes and bars include coffee shops, bars, and pubs. Examples include Starbucks, Second Cup, and Boston Pizza.

Street stalls and kiosks: Examples include hot dog stands, ice cream trucks, and food trucks.

100% home delivery/takeaway stores: Examples include Pizza Pizza and Domino’s Pizza.

Source: Renub

By Structure

Independent: Restaurants that operate as standalone entities, not part of a chain. Examples include Terroni and Caplansky’s Deli.

Chained: Restaurants that are part of a chain of restaurants with a common brand, menu, and decor. Examples include McDonald’s and Tim Hortons.

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3.Market Drivers

Modern fast life and work pace: Canadians are increasingly busy and seek convenient meal options.

• Canada’s economic growth pushes food service to grow along.

• The growth of industries like tourism, hospitality, and entertainment creates opportunities for the foodservice industry.

New millennial generation values healthy diets and outdoor lifestyles: The younger generation has become more health-conscious, resulting in an increasing demand for healthy menu options and outdoor dining experiences.

Ethnic diversity and immigration lead to culinary diversity: Canada’s increased cultural diversity has led to a demand for diverse cuisines.

• The rise of online food ordering: The convenience of ordering food online has increased the popularity of food delivery services.

Source: unsplash

4.Market Restraints

Despite the potential for growth in the food service industry, several factors act as restraints on the market. These include:

The high competitive rivalry of the industry

The impact of the global economic recession has affected the purchasing power of customers, leading to a decline in demand for food service. This hurts businesses’ revenue streams and profitability.

The global economic recession impact

The impact of the global economic recession has affected the purchasing power of customers, leading to a decline in demand. As a result, businesses operating in this industry have had to adjust their prices and marketing strategies to remain competitive.

The dynamics of geopolitics

The foodservice industry is affected by domestic and international political and economic changes. Trade wars, political tensions, and other geopolitical factors can significantly impact the industry, making it difficult for businesses to plan and execute their strategies effectively.

Source: unsplash

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5.Competitive Landscape

The Canadian foodservice market is highly competitive, with many local and international players taking up most of the market share. These key players comprise McDonald’s, Starbucks Corporation, Domino’s Pizza Inc, Yum! Brands, Restaurant Brands International Inc., Tim Horton’s, and MTY Food Group Inc.

Most Adopted Strategies

The most adopted strategies in the food service industry include:

Innovation: Businesses continually innovate to keep up with changing consumer trends and preferences. This includes developing new menu items, offering delivery and takeout options, and improving the dining experience.

Expansion: Many businesses are expanding their domestic and international operations to increase their market share and revenue streams. This includes opening new locations, acquiring other businesses, and partnering with other companies.

Technology: Technology is increasingly important in the foodservice industry. Businesses are using technology to improve the ordering and delivery process, to provide a better customer experience, and to streamline their operations.

Key players Analysis

Source: Mordor Intelligence

Starbucks Corporation

Starbucks Corporation is a global coffeehouse chain that is based in Seattle, Washington. The company maintains a powerful presence in the Canadian market, with over 1,400 locations nationwide. In 2022, Starbucks launched a new plant-based menu in Canada, featuring items such as plant-based protein bowls and wraps.


McDonald’s is one of the fast-food giants worldwide, with over 1,400 locations across Canada. The enterprise has recently expanded its product portfolio to include salads and grilled chicken sandwiches as healthy options. Last year, the McCrispy sandwich was on the Canadian menu. The sandwich became popular for its locally-raised seasoned chicken breast.

Yum! Brands

Yum! Brands is a global fast-food company that operates several well-known brands, including KFC, Pizza Hut, and Taco Bell. The company has over 1,400 locations nationwide. Yum! Brands has been expanding its footprint in the Canadian market by opening more locations, particularly in areas with a high concentration of college students and young people.

Restaurant Brands International Inc.

Restaurant Brands International Inc. is a Canadian multinational fast-food company with several well-known brands, including Tim Hortons, Burger King, and Popeyes Louisiana Kitchen. The company has over 4,900 locations across Canada. In recent years, Restaurant Brands International has been focusing on expanding its footprint in the international market by opening new locations in Asia and other regions.

Domino’s Pizza Inc

Domino’s Pizza Inc is a global pizza chain with over 600 locations across Canada. The brand has expanded its menu to include more plant-based options to attract health-conscious consumers. In 2022, Domino’s Pizza Inc launched a new line of plant-based pizzas in Canada, featuring toppings such as Beyond Meat and vegan cheese.

MTY Food Group Inc.

MTY Food Group Inc. is a Canadian multinational franchisor and operator of several well-known fast-food brands, including Mr Sub and Thai Express. The company has over 7,000 locations across Canada and the United States. In 2022, MTY Food Group’s USA franchise acquired Wetzel’s Pretzels, a franchisor and operator of quick-service restaurants in the snack category.

Source: Wikipedia

  • The number of wealthy families in Canada is increasing; many choose to hold private parties and events in outdoor spaces. This trend has created new opportunities for outdoor dining furniture wholesalers, such as Coets, to provide high-quality outdoor furniture for these events.

  • Customers are becoming more loyal to their favourite foodservice brands, leading to longer customer life cycles. This trend has created opportunities for brands to build stronger customer relationships and offers loyalty programs to reward repeat business.

  • Enterprises are spending more on food service budgets for special events such as school graduation parties and team-building activities.

  • Big brands are expanding their product portfolio and opening more fast food places for college students and young people. For example, Yum! Brands has announced plans to expand Taco Bell’s presence in Canada, focusing on young consumers.

  • McDonald’s and Starbucks are expanding their product portfolios to attract more customers. Starbucks, for example, has introduced plant-based menu options to cater to customers with dietary restrictions.

  • The trend of outdoor dining is growing as more restaurant owners are willing to expand their options. Outdoor dining is becoming more popular due to its increasing profit margins and better brand awareness through outdoor decor and ambience. However, the trend is limited by weather conditions, which may require restaurant owners to invest in outdoor heating and cooling systems.

  • Colourful chairs are on-trend for outdoor dining to create a vibrant and lively atmosphere.

  • New technology, such as online ordering systems and delivery apps, are changing how food service businesses operate. More businesses are adopting these technologies to streamline operations and provide better customer service.

  • Domino’s Pizza Inc announced its plan to expand its delivery services in Canada by partnering with third-party delivery companies to reach more customers. This decision aims to increase its market share in Canada’s highly competitive food service industry.

  • A definite merger agreement has been formed by the USA franchise of MTY Food Group Inc. to purchase Wetzel’s Pretzels, which operates and franchises quick-service restaurants focusing on snacks.

Source: Coets

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7.Outdoor Dining Catering Feasibility

Outdoor dining has become a popular trend in the foodservice industry, especially with the increasing demand for outdoor events and dining experiences. Here are some considerations for businesses interested in starting an outdoor dining catering service:

Business opportunities

Outdoor dining catering can offer new revenue streams and reach a wider audience.

Outdoor dining space

Choose a suitable outdoor space that fits the business needs, such as a garden, patio, or rooftop.

Get a permit from local admin

Get familiar with local regulatory items and obtain the necessary permits and licenses before further expenditure.


Consider the cost of outdoor furniture, decor, and other necessary equipment.

Staff training

Train staff in outdoor dining service, such as setting up outdoor furniture, managing outdoor conditions, and providing excellent customer service.

Special Menu

Create a special menu for outdoor events appropriate for the outdoor setting.

Select high-quality outdoor furniture that is durable and comfortable for customers.

Source: Coets

8.Outdoor Dining Furniture

It is critical to choose the right outdoor furniture businesses when starting or operating an outdoor dining service. Coets is a trusted one-stop solution for outdoor dining projects, providing high-quality, stylish, and durable furniture.

Coets offers a variety of dining sets, including Erica and Claire. They are made of durable materials and stylish, comfy designs.

Bar tables and stools

Coets’ bar tables and stool sets, such as Erica and Joe, are perfect for outdoor bar areas and offer comfort, style, and durability.

Sun loungers

Coets’ sunlounger, Kim, is designed for comfort and relaxation, with adjustable reclining positions and durable materials.

Outdoor sofas

Coets’ outdoor sofa sets, such as the Zoe, are designed for comfort and style, with durable materials and weather-resistant fabrics.


Coets’ parasols, such as Derek and Dale, provide shade and protection from the sun with durable and stylish designs.

Source: Coets

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The Canadian foodservice market is a dynamic and growing industry with various opportunities for businesses in the sector. The industry’s growth is driven by factors such as Canada’s economic growth, modern lifestyles, and the increasing demand for healthy diets and outdoor experiences. The increasing popularity of outdoor dining has opened new opportunities for businesses, and the right outdoor furniture can enhance the outdoor dining experience for customers. Coets provides high-quality, stylish, and durable outdoor furniture solutions for businesses operating or starting outdoor dining services.


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