CRFA Boosts Forecast for Restaurant Sales This Year

“Restaurant sales are in better shape than we expected,” the Canadian Restaurant and Foodservices Association stated in a release July 14 announcing an upgrade in the groups’ forecast for restaurant sales in Canada this year. The group revised its forecast upwards to 4.2% nominal growth from its original forecast of modest 2.9% growth, made last December. It cited better than expected first-quarter sales, the mild winter and the Leap Year extra day in February among factors prompting the revision. Total restaurant sales in Canada should reach nearly $53 billion (Canadian) this year. With noncommercial segments included, the industry will surpass $65 billion this year, the association projects.

Quick-service restaurants are forecast to grow fastest, up 4.9% this year. Full-service growth is forecast at 3.9%. Catering sales are expected to growth 4.4%, driven in part by increased demand among oil and gas exploration and other resources industries in the western provinces. Sales at drinking places are projected to fall 0.8% as weaker consumer demand and stricter drinking and driving legislation impacts bars and taverns, especially in the West.