Food services and drinking places, December 2016

Released: 2017-02-28

Sales in the food services and drinking places subsector were down 0.2% to $5.5 billion in December, offsetting the gain from November. Weaker sales at limited-service eating places was the main contributor to the decline.

Chart 1 
Sales in the food services and drinking places subsector decrease

Sales of limited-service eating places decrease

Following six straight monthly gains, sales at limited-service eating places decreased 1.1% in December.

Sales at drinking places were down 3.8%, a second consecutive monthly decrease.

Receipts from the special food services group, which includes food service contractors, caterers and mobile food services, declined by 0.7%. Sales of this industry group have been on a downward trend since July.

Full-service restaurants ended the year with a 1.0% increase in sales. This recouped the decreases from the previous two months.

Sales down in eight provinces

Sales were down in eight provinces in December. The largest contributor to the overall decline was a 0.7% sales decrease in Ontario.

Receipts in Manitoba were down 2.3%, more than offsetting the increase in November.

Nova Scotia (-2.0%) recorded a fourth consecutive monthly decline, while both Alberta (-0.2%) and New Brunswick (-1.3%) had lower sales for the third time in four months.

Quebec and British Columbia, the two provinces where full-service restaurants represent the largest share of provincial sales, were the only provinces to report gains in December. Sales in Quebec were up 0.8%, rising for the fourth consecutive month. In British Columbia, December sales were up 0.6%, marking the third gain in four months.

In celebration of the country's 150th birthday, Statistics Canada is presenting snapshots from our rich statistical history.

During the period from 1941 to 1951, which included the post-war boom, sales at restaurants rose by 245% while the population of Canada increased by 21.8%. In the most recent period from 2006 to 2016, total sales in the food services and drinking places subsector increased by 50% while the population grew by 11.4%.

The year 2016 in review

The following year in review analysis uses data that have not been seasonally adjusted.

Annual sales of food services and drinking places totalled $64.9 billion in 2016, up 6.3% from 2015. This was the fastest rate of annual growth since 2000, supported by an improved employment outlook in many provinces, substantial tourism and the increasing popularity of limited-service eating places. The average price index for food purchased from restaurants was 2.6% higher compared with 2015, and prices for alcoholic beverages served in licensed establishments were up 1.8%.

Limited-service eating places lead gains for the second year

Limited-service eating places, also known as "fast food" or quick-service restaurants, reported the largest gain in sales at 7.6%. Limited-service eating places held the largest share of sales in the food subsector (44.5%), compared with 43.4% for full-service restaurants.

At full-service restaurants, sales increased by 5.7% in 2016, which was also the fastest growth rate since 2000. Full-service restaurant sales increased in seven provinces. Alberta (-2.8%), Saskatchewan (-6.0%), and Manitoba (-1.2%) were the only provinces with lower receipts at full-service restaurants.

Chart 2 
Full-service restaurants, Canada and the provinces

The special food services group, which includes food service contractors, caterers and mobile food services, had slower sales growth in 2016 (+2.7%) compared with a year earlier (+4.6%). The increase in Ontario was the largest change in the year, while lower sales in Alberta were the second-largest change.

At drinking places, an industry group where sales and the number of establishments have been on a downward trend for over a decade, the sales change for 2016 was positive, amounting to a gain of 5.5%. Most of the increase was in Quebec, the province with the largest share of national sales at drinking places (26.9%).

Chart 3 
Food services and drinking places, Canada and the provinces

Ontario, British Columbia and Quebec sales increase above the average

Ontario is the largest province in terms of sales for the food services and drinking places subsector, representing 39.6% of the national total in 2016. Rising 6.7% over the year, the increase in Ontario was the largest in the country in dollar terms.

Strong sales in early 2016 boosted annual sales in British Columbia by 10.0%. More than half of the increase in the province came in the full-service industry, which reported growth of 11.5%. At limited-service eating places (+9.7%), sales growth remained on an upward trend that began in 2012.

The rate of growth in Quebec more than doubled, from 1.3% in 2014 to 3.3% in 2015, and then again to 7.8% in 2016. Limited-service eating places (+9.5%) was the main contributor to the increase. Full-service restaurants in Quebec had the largest share of provincial sales among the provinces, at 48.5%. After reporting 1.3% growth in 2015, sales in the industry were up 6.5% in 2016.

Sales growth lowest in Alberta

Sales in Alberta rose 0.5% in 2016, the weakest growth rate among the provinces for a second consecutive year. Consumers tended more towards spending at limited-service eating places in 2016, where sales increased by 5.0%, compared with a 2.8% decline for full-service restaurants. Sales were also down in the special food services group (-6.5%), an industry group that includes contractors who provide food services to work camps in the province.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).