institutional foodservice

Institutional foodservice: One-tenth of Canada’s foodservice industry

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In its recently released 2017 Canadian Institutional Foodservice Market Report, fsSTRATEGY estimates total gross revenues in institutional foodservice in Canada in 2016 to be $8.5 billion or 10 per cent of total Canadian foodservice industry sales. Approximately 54 per cent of the institutional foodservice market is operated by management and staff directly employed by institutions. The remaining 46 per cent is operated by contract foodservice management companies.

institutional foodservice

Total institutional foodservice revenues grew by 1.3 per cent in 2016. As shown in the graphic to the left, healthcare foodservice (patient/resident feeding and retail foodservice) is the largest segment of the total institutional foodservice market. Healthcare foodservice revenues increased by 4.1 per cent in 2016. As the Canadian population ages, this segment, especially retirement home foodservice, is expected to continue to grow. The second largest segment is remote catering – foodservices in remote resource and utility camps. Foodservice sales in the remote segment were estimated to have declined by 6.8 per cent in 2016 following a 29.7 per cent decline in 2015. The reduction in the world price and demand for oil has forced resource companies to reduce camp headcounts and operating costs, resulting a significant dampening of remote foodservice demand.  Education foodservice makes up 14 per cent of the institutional foodservice market. Enrolments in private schools, high schools, colleges and universities are generally flat and, in some cases, declining slightly. Nevertheless, foodservice operators are making strides in generating greater per capita revenues to maintain positive education segment growth. Education segment revenues increased by 1.3 per cent in 2016.

fsSTRATEGY is a niche consulting firm specializing in strategy in the hospitality industry with an emphasis on the foodservice sector. For additional information on the 2017 Canadian Institutional Foodservice Market Report or fsSTRATEGY services, contact us at nextsteps@fsstrategy.com or 416-229-2290.

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