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Toronto, Aug. 07, 2025 (GLOBE NEWSWIRE) — Despite ongoing economic uncertainty, Canada’s commercial foodservice industry has demonstrated remarkable resilience and growth in the first half of 2025. According to Circana LLC, traffic in the sector increased by 3.2%, while spending rose by an impressive 5.7%. These gains extend a consistent upward trend that began in mid-2021, underscoring the sector’s strength and adaptability.
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Quick-service restaurants (QSR) led the way in traffic growth, logging a 4.3% increase during the most recent quarter. Retail foodservice also showed exceptional performance, matching QSR quarterly traffic growth of 4.3% and marking its best growth in years. However, full-service restaurants experienced a modest 0.7% decline in traffic, as consumers turned to more budget-conscious options like QSR and retail foodservice to maximize their spending power.
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Independent and small-chain restaurants also outpaced large-chain competitors in traffic growth, reflecting a shift toward localized dining experiences and a growing appetite for unique, bold flavors and innovative menus that celebrate regional and cultural diversity. The industry’s ability to innovate and meet consumer needs — whether through digital ordering, value-driven promotions, convenient delivery options or menu innovation — has driven this sustained success.
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Several factors have contributed to the robust performance of the commercial foodservice industry in Canada. Over the past four years, the country’s growing population has steadily bolstered demand. More recently, reduced international travel has redirected consumer dollars toward local experiences instead of costly vacations abroad. Canadians are opting for domestic travel and small indulgences, including restaurant visits.
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Additionally, deal rates climbed for the sixth consecutive quarter, helping attract value-seeking consumers. Lunch has emerged as the fastest-growing daypart, supported by the steady return-to-office trend, while digital ordering options — via mobile apps, websites and text — continued their double-digit growth in each of the past three quarters. Delivery, in particular, surged by 13% in the last quarter. Independent and small-chain restaurants also outpaced large-chain competitors in traffic growth, reflecting a shift toward localized dining experiences.
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“Canada’s commercial foodservice sector has shown extraordinary resilience and adaptability, with robust growth across key segments like QSR and retail foodservice,” said Vince Sgabellone, foodservice industry analyst at Circana. “The industry’s ability to innovate and meet consumer needs — whether through digital ordering, value-driven promotions or convenient delivery options — has driven this sustained success.”
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The strong performance in H1 2025 reflects Canadians’ evolving dining habits and reallocation of discretionary spending, mirroring broader lifestyle adjustments. Looking ahead, the foodservice industry’s continued focus on affordability, digital solutions and consumer convenience positions it for sustained growth in the coming quarters.
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About Circana
Circana is a leader in providing technology, AI, and data to fast-moving consumer packaged goods companies, durables manufacturers, and retailers seeking to optimize their businesses. Circana’s predictive analytics and technology empower clients to measure their market share, understand the underlying consumer behavior driving it, and accelerate their growth. Circana’s Liquid Data® technology platform is powered by an expansive, high-quality data set and intelligent algorithms trained on six decades of domain expertise. With Circana, clients can take immediate action to future-proof and evolve their growth strategies amid an increasingly complex, fast-paced, and ever-changing economy. Learn more at circana.com.
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