On the go: Major chains have expanded their menus due to changing consumer preferences

The Fast Food Restaurants industry in Canada has expanded over the five years to 2019, despite mounting internal competition and changing consumer tastes. Since 2014, higher consumer spending and product innovation by fast food restaurants have 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. Furthermore, meal customization and high-quality ingredients have become increasingly popular in recent years. Over the past five years, consumer eating habits have changed as people have become increasingly health conscious, demanding alternatives to traditional fast food options...read more.

Industry Statistics & Market Size
Revenue
$26bn
Annual Growth 14-19
3.4%
Forecast Growth 19-24
Profit
Employment
391,282
Businesses
20,521

Industry Threats & Opportunities

  • Healthful food alternatives and gourmet items will play a larger role on the menus of most fast food restaurants
  • Consumer preferences have evolved toward healthier options
  • Industry operators will continue to diversify into new areas
  • Industry Report - Industry Analysis Chapter

    The Fast Food Restaurants industry in Canada has experienced strong growth over the five years to 2019, despite the public’s increasing awareness of the health risks associated with a diet high in fat, salt and sugar. During the period, rising levels of disposable income, consistent population growth and the industry’s attempts to alter its menus and prices to better correspond with changing consumer preferences, have encouraged a greater number of consumers to rely on fast food restaurants to meet their dining needs. Overall, industry revenue is estimated to increase at an annualized rate of 3.4% to $26.4 billion over the five years to 2019, including projected growth of 0.9% in 2019 alone. Thi...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-through limited service restaurants
  • Off-premises (takeout) limited service restaurants
  • Industry Activities
  • Operating quick service restaurants
  • Operating fast food services
  • Operating drive-through and takeout 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-through limited service restaurants
  • Off-premises (takeout) 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
  • Lowest quintile of income
  • Second 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
    WagesPurchasesProfitDepreciationMarketingMarketingMarketingOther
  • 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 Corporation, Subway, A&W Food Services of Canada Inc.,
  • Table: McDonald's Corporation - 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
    Includes:
  • Industry Revenue (2010-2024)
  • Industry Gross Product (2010-2024)
  • Establishments (2010-2024)
  • Businesses (2010-2024)
  • Employment (2010-2024)
  • Wages (2010-2024)
  • Wages (2010-2024)
  • Purchases (2010-2024)
  • Profit (2010-2024)
  • Depreciation (2010-2024)
  • Marketing (2010-2024)
  • Rent (2010-2024)
  • Utilities (2010-2024)
  • Other (2010-2024)
  • Consumer spending (2010-2024)

  • 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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