According to the group’s latest report, sales are expected to grow in 2016 by almost four per cent to $62 billion. When non-commercial food services in places like hospitals and hotels are included, sales will total more than $77 billion in 2016.
Manitoba and British Columbia will lead the way next year with projected growth of just over four per cent, while Newfoundland is expected to have the slowest growth at nearly two per cent.
“Restaurants are a catalyst for the Canadian economy,” says Restaurants Canada CEO Donna Dooher. “They are an important part of every community, they account for more than one million jobs and they generate billions of dollars in spin-off spending for everything from agriculture to technology.”
Surging labour and food costs, however, are eating up an increasingly large part of the industry revenue, along with a decline of pre-tax profit margin from 5.8 per cent in 2001 to 4.2 per cent in 2016.
Restaurants Canada is using an econometric model to forecast commercial food-service sales through to 2019 by using the Conference Board of Canada’s forecasts of disposable income, real gross domestic product (GDP), employment rates and population.