Canadian Food service sector considered as one of the hardest hit during Covid-19 pandemic

24 May 2020
Canadian Food service sector considered as one of the hardest hit during Covid-19 pandemic

It is being reported that on premise locations have experienced dramatic drops in sales and visits that indicate over a quarter billion restaurant visits with a sales decline of 67% compared to the previous year. Quick service restaurants also have undergone a drop-in sale by one third although they benefitted from takeaways. Alarmingly as of March 2020 food service industry as a whole incurred a 47% loss compared to last year 2019.


Easing of restrictions in certain provinces

Post Covid-19 does not imply business as usual although restrictions have got eased in some provinces. It is found that 68% of Canadians are nervous to leave their home even after businesses are reopened. Amid this situation, the Canadian foodservice sector is likely to shrink by 26% despite the fact that it is difficult to forecast numbers for the remainder of 2020.

On the plus side, there’s a clear growth in delivery channel orders that sums up to 36% in the second half of March when compared to last year. This growth comprises of both 3rd party aggregators like Uber Eats, Door Dash and Skip TheDishesas well as traditional delivery channels such as Dominos and Pizza Hut. In fact pizza operators collectively progressed traffic by double digits in the 2nd half of March compared to the first.

Certain businesses have identified new opportunities that have led to change the way they approach consumers. With Health and Safety being top concern for consumers, businesses have started highlighting safety precautions they’re implementing in their marketing communications and in the strategic approach. These commercial initiates have definitely impacted the consumer behavior where it’s reported 62% of Canadians believe that restaurants are doing everything they can to prevent the spread of Covid-19.