On the go: Healthful food options and higher consumer spending will accelerate industry growth

The Fast Food Restaurants industry in Canada has expanded over the past five years, despite mounting internal competition and changing consumer tastes. Since 2013, higher consumer spending and product innovation by fast food restaurants has renewed consumer interest in fast food. Products with higher profit margins, such as coffee, smoothies and salads, have become more prominent at traditional fast food restaurants, leading to an increase in the average industry profit margin. Over the past five years, consumer eating habits have changed as people become increasingly health conscious, demanding alternatives to traditional fast food options. In response, major chains, such as McDonald's, have expanded menus to include healthier options such as salads, fruit and smoothies...read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23

Industry Threats & Opportunities

  • Premium healthy food options will command higher prices and drive revenue growth
  • Operators have performed to varying degrees of success depending on the products they offer
  • Fast food restaurants in Canada will benefit as the economy continues to grow and consumers spend more on small luxuries
  • Industry Report - Industry Investment Chapter

    The Fast Food Restaurants industry in Canada is characterized by a low level of capital intensity, with the typical industry operator estimated to spend just $0.10 on capital investments for every $1.00 allocated to labour inputs in 2018. The industry is heavily dependent on direct labour input across all areas of operation, including taking orders, delivery, food preparation, cleaning and operational management. Due to the service-based nature of this industry's services, many of these labour-intensive functions cannot easily be substituted by technology or machinery. To meet customers' expectations and provide a quality and hospitable dining experience, a well-trained staff is required. Lab...purchase to read more.

    Additional Insights for the Fast Food Restaurants Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Fast Food Restaurants Industry are

  • Business expertise of operators
  • Having a clear market position
  • Effective cost controls
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Per capita meat consumption in the Fast Food Restaurants industry impact industry performance..

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    What's in this report

    What is the Fast Food Restaurants Industry?

    This industry comprises restaurants where patrons pay for quick-service food products before eating. Purchases may be consumed on-site, taken out or delivered. Gross revenue is derived from both franchised and company-owned stores. Franchise fees are not accounted for in total industry revenue. This industry specifically excludes coffee and snack shops. Most of the industry’s establishments also sell beverages, such as water, juice and sodas, but usually not alcohol.

    Industry Products
  • On-premises limited-service restaurants
  • Drive-thru limited-service restaurants
  • Off-premises (take-out) limited-service restaurants
  • Industry Activities
  • Operating quick-service restaurants
  • Operating fast food services
  • Operating drive-thru and take-out facilities
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Consumer spending
  • Per capita meat consumption
  • Consumer Confidence Index
  • Adult obesity rate

  • Current Performance
  • Consumer spending
  • Shifting tastes and preferences
  • Profit and employment
  • Chart: Revenue Growth

  • Industry Outlook
  • New ways to expand
  • Establishments and employment
  • Table: Fast Food Restaurants Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Fast Food Restaurants Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Consumers in Canada

  • Key Selling Industries
  • Beef & Pork Wholesaling in Canada
  • Dairy Wholesaling in Canada
  • Fish & Seafood Wholesaling in Canada
  • Frozen Food Wholesaling in Canada
  • Fruit & Vegetable Wholesaling in Canada

  • Products & Services
  • On-premises limited-service restaurants
  • Drive-thru limited-service restaurants
  • Off-premises (take-out) limited-service restaurants
  • Other
  • Chart: Fast Food Restaurants Industry Products and Services Segmentation

  • Demand Determinants
  • Income and expenditure
  • Health consciousness
  • Convenience
  • Demographics

  • Major Markets
  • Highest quintile of income
  • Fourth quintile of income
  • Middle quintile of income
  • Second quintile of income
  • Lowest quintile of income
  • Chart: Major Market Segmentation for the Fast Food Restaurants Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Rent and utilities
  • Other
  • Chart: Cost Structure Benchmarking – Sector vs Fast Food Restaurants

  • Basis of Competition
    Internal competitionExternal competition
    Barriers to Entry
  • Table: Barrier to Entry Checklist for the Fast Food Restaurants Industry

  • Industry Globalization
    McDonald's Corp., Subway, A&W Food Services of Canada Inc.,
  • Table: McDonald's Corp. - financial performance
  • Table: Subway - financial performance
  • Table: A&W Food Services of Canada Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Fast Food Restaurants Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Fast Food Restaurants Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Consumer spending (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Baby Boomers
  • Consumers born between 1946 and 1964 who account for a major proportion of the population.
  • Gross Sales
  • Revenue from franchised and company-owned store sales.
  • Net Revenue
  • Revenue from company-owned stores and franchise fees, but not franchised stores' total sales.
  • Point-Of-Sale (Pos)
  • The location where a transaction occurs at a retail establishment or store.
  • Same-Store Sales
  • A retail measure used to assess the true performance of retail outlets by taking out the effect of new store openings and only looking at sales growth of existing stores.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Fast Food Restaurants market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Fast Food Restaurants:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Fast Food Restaurants market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Fast Food Restaurants, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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