Alberta’s Foodservice Outlook
QSR & Drinking Places Increase Sales vs. FSRAlberta’s commercial foodservice sales showed a year-over-year nominal change of 1.7% in 2015, but sales were forecast to slow down to 0.6% in 2016, whereas BC’s sales forecast was 7.5% and Manitoba’s was 3.4%.
Foodservice Sales Growth by Segment in Alberta
Total | Full-service restaurants |
Quick-service restaurants |
Caterers | Drinking Places |
|
2015 | 1.7% | 0.9% | 4.3% | -5.6% | -2.3% |
2016 (Jan-July) | -0.2% | -4.1% | 4.4% | -3.6% | 0.8% |
Source: Restaurants Canada and Statistics Canada |
Top Issues Impacting Operators
Food costs | 79% |
Weak economy | 79% |
Labour costs | 74% |
Credit card merchant fees | 53% |
Liquor costs | 37% |
Competition from new restaurants | 37% |
Weak customer demand | 37% |
Shortage of unskilled labour | 26% |
Shortage of skilled labour | 16% |
Gasoline prices | 11% |
Source: Restaurant Outlook Survey – Q2 2016
Restaurant owners are very concerned about the impact that an increase in the minimum wage to $15.00 will have on their businesses. 94.4% believe it will have a very negative impact and 89% will increase prices as a result. 78% stated they will decrease labour hours, 49% will lay off staff, and 27% will explore self-service solutions like touch pads.
Alberta’s commercial foodservice industry is an important economic contributor representing $8.9 billion in sales in 2015. That number was forecast by Restaurants Canada to remain the same in 2016.