Despite economic uncertainty and cautious consumer sentiment, Canada’s commercial foodservice industry has posted strong growth in the first half of 2025, continuing a recovery trend that began in mid-2021. According to new data from Circana LLC, traffic across the sector rose 3.2% in the first half of the year, while consumer spending increased by 5.7%.The performance underscores both the resilience of Canadian foodservice and the evolving dining habits of Canadians, who continue to prioritize local experiences and social outings even as household budgets remain stretched.Retail foodservice, which includes fully prepared meals and beverages purchased from grocery stores, convenience stores, and warehouse clubs for immediate consumption, has emerged as a particularly dynamic segment. As Vince Sgabellone, Foodservice Industry Analyst at Circana, explained, this reflects consumer preference for convenience and affordability.“We like experiences, and we all eat,” he said in an interview. “Even if it’s a five-dollar coffee a day, that adds up quickly. People still want the experience, even if they’re saving money elsewhere.”Full-service restaurants, by contrast, saw a 0.7% decline in traffic, as Canadians increasingly chose lower-cost formats that require less tipping and tax. The trade-down trend is being reinforced by rising meal prices and a growing appetite for value-driven promotions.(continue in article) (ICE TORONTO)

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