Canadian Industrial Outlook: Food Services—Winter 2018
This report examines the short-and medium-term economic and profitability outlook for Canada's food services industry.
- Tapped-Out Consumers a Threat to Industry Sales—Consumers’ ability to spend is starting to weaken due to high consumer debt levels, rising interest rates, weaker job gains, and a cooling housing market. This will dampen the industry’s sales over the near and medium terms.
- Minimum Wage Hikes Driving Cost Pressures—In an industry characterized by its dependence on low-wage work, legislated minimum wage hikes in Ontario and Alberta will put significant upward pressure on operating costs in these provinces. The ability of firms to manage these pressures, (through higher prices or a reduction in labour) will determine their competitiveness going forward.
- Data-Driven Decision-Making on the Rise—In an environment characterized by weak marginsand slowing growth in consumer traffic, the success of food service providers is defined increasingly by their ability to leverage data insights.