Fast Food Restaurants in Canada - Market Research Report (2014-2029)
New York, United States
Last Updated: January 2024
NAICS 72221aCARevenue
$36.4bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
406k
Businesses
20,592
Wages
$XX.Xbn
Fast Food Restaurants in Canada industry analysis
The Fast Food Restaurants industry in Canada has expanded over the past five years, driven by higher consumer spending and product innovation. However, mounting internal competition and changing consumer tastes have pressured revenue growth during the same period. Products with higher profits, such as coffee and smoothies, have become more prominent at traditional fast-food restaurants. Furthermore, meal customization and high-quality ingredients have become increasingly popular in recent years, inducing major players in the industry to reconsider their overall strategy and menu offerings. Altogether, industry revenue is expected to rise at an annualized rate of 1.5% to $36.4 billion over the five years to 2024, including an expected 7.0% increase in 2024 alone.
Trends and Insights
- Rising health concerns associated with fast food will likely push fast food restaurants to invest more in improving their ingredients and offering healthier items. However, competition will remain intense, encouraging fast-food restaurants to explore new markets and sales channels.
- The industry includes many types of food, but few restaurants in this industry fall under only one food category. For example, many burger restaurants also serve chicken and sandwiches.
- As a service-based retail industry that relies heavily on foot traffic and high levels of consumer spending to generate revenue. Therefore, fast food restaurants are generally dispersed in line with the broader distribution of the Canadian population.
- Up-and-coming concepts have forced traditional fast food stalwarts to innovate to compete. The chicken sandwich war between fast food operators is an example of incumbents copying a popular product of a newer operator.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.8 % over the past five years, to reach an estimated $36.4bn in 2024.
Trends and Insights
Shifting tastes and preferences hurt and benefit fast food demand
- Consumer preferences have evolved over the past decade toward healthier, gourmet options. Many quick-service restaurants have taken advantage of this trend by shifting menus away from fatty foods with high salt and cholesterol and focusing instead on quality products with nutritional value.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Fast-food restaurants find new ways to expand
- Price-based competition and an emphasis on the regular introduction of new products will likely intensify over the next five years. Most fast food chains will introduce new healthful alternatives and expand product lines.
Biggest companies in the Fast Food Restaurants in Canada
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
McDonald's Corporation | 5,215.4 | 2,217.6 | 42.5 | |
Tim Hortons Inc. | 3,639.3 | 1,477.0 | 40.6 | |
Subway | 1,893.5 | 73.0 | 3.9 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Burgers, Chicken and Sandwiches. Burgers is the largest segment of the Fast Food Restaurants in Canada.
Trends and Insights
Burgers are most commonly associated with fast food in North America
- The 50 largest fast-food chains are dominated by restaurants that specialize in burgers. These restaurants include McDonald's, Wendy's and Burger King. However, many traditional burger restaurants have struggled with stagnating or declining sales as consumers move away from generic food toward niche options.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Full-Service Restaurants in Canada
- Caterers in Canada
- Street Vendors in Canada
Complementors
- Bars & Nightclubs in Canada
International industries
- Global Fast Food Restaurants
- Fast Food Restaurants in the US
- Mexican Restaurants in the US
- Doughnut Stores in the US
- Pizza Restaurants in the US
Table of Contents
About this industry
Industry definition
The 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.
What's included in this industry?
Operating quick service restaurants Operating fast food services Operating drive-through and takeout facilitiesCompanies
McDonald's CorporationTim Hortons Inc.SubwayPurchase this report to view all 5 major companies in this industry.
Related Terms
GROSS SALESNET REVENUEBABY BOOMERSPOINT-OF-SALE (POS)SAME-STORE SALESIndustry Code
NAICS 722210 - Fast Food Restaurants in Canada
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Rising health concerns associated with fast food will likely push fast food restaurants to invest more in improving their ingredients and offering healthier items. However, c...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
The industry includes many types of food, but few restaurants in this industry fall under only one food category. For example, many burger restaurants also serve chicken and ...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
As a service-based retail industry that relies heavily on foot traffic and high levels of consumer spending to generate revenue. Therefore, fast food restaurants are generall...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each province
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each province in 2024
- Number and share of revenue each province accounts for in 2024
- Number and share of wages each province accounts for in 2024
- Number and share of employees in each province in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Up-and-coming concepts have forced traditional fast food stalwarts to innovate to compete. The chicken sandwich war between fast food operators is an example of incumbents co...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
McDonald's is the industry leader, with nearly 20.0% of the market share. Among smaller restaurants, Chipotle is an emerging chain in the quick-service segment.
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of McDonald's Corporation's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Tim Hortons Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Subway's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for McDonald's Corporation, and factors influencing its performance in the industry
- Description and key data for Tim Hortons Inc., and factors influencing its performance in the industry
- Description and key data for Subway, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Industry-relevant regulations cover various topics, including food safety and standards, labour conditions, liquor licensing and franchising requirements. Most of these regul...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Depreciation accounts for a moderate proportion of industry revenue. Typical capital expenditure for a restaurant includes fitting out the restaurant, such as installing a co...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Assets (2017-2022)
- Liabilities (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Canada include:
- Statistics Canada
- Industry Canada
- Canadian Business Patterns
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Fast Food Restaurants industry in Canada in 2024?
The market size of the Fast Food Restaurants industry in Canada is $36.4bn in 2024.
How many businesses are there in the Fast Food Restaurants in Canada industry in 2024?
There are 20,592 businesses in the Fast Food Restaurants industry in Canada, which has grown at a CAGR of 1.2 % between 2019 and 2024.
Has the Fast Food Restaurants industry in Canada grown or declined over the past 5 years?
The market size of the Fast Food Restaurants industry in Canada has been growing at a CAGR of 1.8 % between 2019 and 2024.
What is the forecast growth of the Fast Food Restaurants industry in Canada over the next 5 years?
Over the next five years, the Fast Food Restaurants industry in Canada is expected to grow.
What are the biggest companies in the Fast Food Restaurants market in Canada?
The biggest companies operating in the Fast Food Restaurants market in Canada are McDonald's Corporation, Tim Hortons Inc. and Subway
What does the Fast Food Restaurants in Canada include?
Operating quick service restaurants and Operating fast food services are part of the Fast Food Restaurants industry.
Which companies have the highest market share in the Fast Food Restaurants in Canada?
The company holding the most market share in Canada is McDonald's Corporation.
How competitive is the Fast Food Restaurants industry in Canada?
The level of competition is high and increasing in the Fast Food Restaurants industry in Canada.
