Order up: Rising consumer spending and corporate profit levels will benefit the industry

Over the five years to 2018, the Food Service Contractors industry in Canada has benefited from the increased propensity of businesses, healthcare facilities and educational institutions to outsource their food services. Revenue is anticipated to increase over the period. Consumer spending and corporate profit are both expected to grow over the five years to 2023, causing consumers and businesses to increase their spending on food services. Moreover, consolidation is expected to continue over the next five years. For this reason, the average industry profit margin will remain steady. Consequently, industry revenue is expected to grow over the five years to 2023...read more.

Industry Statistics & Market Size
Revenue
$5bn
Annual Growth 13-18
4.2%
Forecast Growth 18-23
Profit
Employment
65,264
Businesses
1,853

Industry Threats & Opportunities

  • The industry is buoyed by consistent demand from operators in downstream sectors
  • Industry consolidation is evident in the slowed growth in the number of enterprises
  • Higher profit margins will give large corporations more impetus to retain employees
  • Industry Report - Industry Key Buyers Chapter

    In 2018, IBISWorld estimates that the top three industry players account for 74.4% of the available market share, creating a high level of market share concentration. A small number of large operators control large contracts for major stadiums, education facilities and events, which comprise the top end of the industry. Only a few companies have the capacity to service these contracts as they require economies of scale, extensive supply chains and the ability to hire large numbers of workers for seasonal events. As a result, the industry has increasingly consolidated over the past five years. Muc...purchase to read more.

    Additional Insights for the Food Service Contractors Industry

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

  • Access to multiskilled and flexible workforce
  • Ability to quickly adopt new technology
  • Ability to control stock on hand
  • IBISWorld analysts also discuss how external factors such as Consumer spending and Corporate profit in the Food Service Contractors industry impact industry performance..

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    What's in this report

    What is the Food Service Contractors Industry?

    Industry companies provide food services at institutional, governmental, commercial or industrial locations. Examples of facilities where food services are provided include airports, food courts, college and university cafeterias and recreation and sports venues.

    Industry Products
  • Cafeteria dining services
  • On-site restaurants
  • Catering and banquet
  • Retail outlets and concessions
  • Food and nutrition services
  • Industry Activities
  • Providing airline food services
  • Contracting cafeteria food services (e.g. for schools, hospitals and government offices)
  • Contracting food concession (e.g. for sports venues, entertainment facilities and convention centres)
  • Industrial catering (e.g. providing food services on a contractual arrangement)
  • 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
  • Corporate profit
  • Demand from educational services
  • Demand from healthcare and social assistance

  • Current Performance
  • Outsourcing grows
  • Industry consolidation
  • Technological investment
  • Chart: Revenue Growth

  • Industry Outlook
  • Varied growth
  • Profit and establishment growth
  • Table: Food Service Contractors Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Food Service Contractors Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Educational Services In Canada
  • Healthcare and Social Assistance In Canada
  • Arts, Entertainment and Recreation In Canada
  • Public Administration in Canada
  • Consumers in Canada

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

  • Products & Services
  • Cafeteria dining services
  • Retail outlets and concessions
  • Food and nutrition services
  • Catering and banquet
  • Other
  • On-site restaurants
  • Chart: Food Service Contractors Industry Products and Services Segmentation

  • Demand Determinants
  • Demand for food services
  • Downstream industries

  • Major Markets
  • Business and industry
  • Educational institutions
  • Healthcare
  • Sports and entertainment
  • Other
  • Chart: Major Market Segmentation for the Food Service Contractors Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    PurchasesProfitWagesRent and utilitiesOther
  • Chart: Cost Structure Benchmarking – Sector vs Food Service Contractors

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Food Service Contractors Industry

  • Industry Globalization
    Aramark, Compass Group Canada, Sodexo Canada Ltd.,
  • Table: Aramark - financial performance
  • Table: Compass Group Canada - financial performance
  • Table: Sodexo Canada Ltd. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Food Service Contractors 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 Food Service Contractors Industry
    Includes:
  • 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
    Cook Chill
  • A technology that enables for the quick freezing of pre-prepared meals for serving at a later time to retain flavour and nutritional benefits.
  • Food Service
  • The making, transporting, serving and dispensing of prepared foods, either on the client's premises or via the provision of pre-prepared meals.
  • Full Facilities Management
  • An agreement with a client to supply multiple services, such as catering, security, maintenance and cleaning, in one contract.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Food Service Contractors market research report can be used to help you: understand market size and growth potential; major companies; draft business plans and pitch books; and conduct benchmarking and SWOT analysis. Our industry analysis highlights macro industry trends in the overall sector and micro trends faced by companies that do business in the industry. The industry report also provides key industry statistics and 5-year forecasts to anticipate future industry prospects so you can decide with confidence.

    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 Food Service Contractors:
    • 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 Food Service Contractors 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 Food Service Contractors, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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