Canadian Restaurant Sales To Slow Next Year, But Average 4.1% Over Next Five Years

Restaurant sales growth in Canada is forecast to slow slightly next year to 3.9% after a predicted 4.7% gain this year, according to a new report from the Canadian Restaurant and Foodservices Association. The association also expects rising disposable income and population growth will help restaurant sales average growth of 4.1% over the next five years. Restaurants in Canada are forecast to ring up $52.9 billion (Canadian) this year. With noncommercial segments included, total Canadian foodservice sales exceed $65 billion (Canadian).

CRFA said the slowdown next year is the result of more moderate economic growth and burgeoning consumer debt. Growth is forecast to pick up steam again in 2014, with sales growth rising to 4.1%.

During the next five years, social caterers and quick-service restaurants are expected to post the strongest growth with average sales gains of 4.6% and 4.5%, respectively. The group noted that full-service restaurants are “on the road to recovery” and are forecast to post 4% average annual growth during the period. At the provincial level, Saskatchewan and Alberta are predicted to show the fastest average growth at 5.4% and 5.3%, respectively. Menu inflation is expected to average 2.6% annually over the next five years.

The detailed forecast is available to CRFA members at membership@crfa.ca.

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