Institutional foodservice to grow 4.1 per cent in 2012By Geoff Wilson
March 26, 2012
According to fsSTRATEGY’s newly released 2012 Canadian Institutional Foodservice Market Report, the total institutional foodservice market is expected to grow to $7.1 billion this year – representing a 4.1 per cent increase over 2011. This combined contracted and self-operated institutional foodservice is expected to account for 11 per cent of Canada’s $65-billion foodservice industry in 2012.
Contract caterers are expected to account for 44 per cent of the institutional foodservice market in 2012 while self-operated institutional foodservice will account for 56 per cent.
The report also identifies key trends in each sector:
- Retirement foodservice is expected to be the fastest-growing institutional foodservice segment in 2012, on the heels of strong expansion in 2011. Growth is attributed to a continuing rise in occupancy levels as well as increases in daily spending due to enhancements to menus to build market share.
- Hospital foodservice sales were expected to rise moderately in 2011 and 2012, driven primarily by significant increases to food costs and rising occupancy rates. Hospitals are now approaching capacity as Canada’s healthcare system strains to meet demand.
- Correctional foodservice sales are expected to experience the second-highest growth of all institutional foodservice sectors in 2012. These increases are driven by rising costs and growing inmate populations at federal facilities due to the government’s tougher stance on crime.