Part of the accommodation and food services sector by the Canadian Franchise Association (CFA), it’s believed that 40% of all franchises in Canada are part of the food industry.
Major segments of food franchises include fast food franchises (or QSRs), full service restaurant franchises, bakery & donut franchises, coffee shop franchises, ice cream and frozen yogurt franchises, vegetarian & vegan food franchises, pizza franchises, and vending machine franchises.
Per the most recent Franchise Economic Outlook for Canada, “the primary driver of the growth in total franchise-related GDP is the food and accommodation services sector, which is expected to increase by 3.21% to $32.8 billion (+1.02% from 2024) with 93% arising from the food services component of the sector.”
The food franchise industry in Canada offers patrons and franchisees alike a variety of options across all of Canada's territories. As it is stated in IBISWorld’s Full Service Restaurant Research Report (March 2025):
Traditional classifications are not sufficient to capture the modern restaurant landscape [in Canada]. The widespread popularity of fusion cuisine implies that categorizing restaurants is no longer as simple as assigning them to a national cuisine.
So undeniable as a force within the industry for the coming years, that diversity was the cover story of the January/February 2025 publication of CFA’s Franchise Canada.
“Unsurprisingly, the most diverse audiences in Canada—diverse families and young singles and new families—are expected to see the most significant growth in population and income over the next three years, positioning them as key influencers in the food industry,” according to Anna Racovali and Sandra Ware for Toronto-based Environics Analytics in the publication. “Understanding these trends is crucial for businesses catering to these dynamic and evolving demographics.”
Beyond cuisine variety, here are some more trends to keep an eye on per IBISWorld:
- Most fast food chains are expected to introduce new healthy alternatives and expand product lines because of changing consumer tastes.
- Continued increase of meal customization options alongside the more widespread adoption of technology.
- Outlets using price-based offers and the regular introduction of new products to compete amongst each other.
- Traditional industry forerunners emulating the successful product offerings of industry newcomers to stay competitive.
Why Franchising?
Starting up a business from scratch is complicated, especially if this is your first venture into self-employment. The prospect of setting up your business infrastructure can be daunting.
Food franchises are already established, perhaps the single biggest reason why franchising is such an attractive proposition—particularly in the current climate. They’ve already developed a product offering.
In addition, as a franchisee of a brand, you’ll be privy to training, operational guidelines, marketing support and other tools, which allow you to hit the ground running, even if you're new to the industry.
Further, many Canadian indies struggle to cut through the noise of their established competition. And while there are never any guarantees of success, an already established brand can help make your start a much more promising one. By partnering with a reputable franchise, you gain instant access to a network of resources. This makes it easier to build relationships with suppliers and prospective customers.
Additionally, food franchises offer access to extensive resources and ongoing training to help you stay ahead in a competitive market. From marketing strategies to financial tools, you can have everything needed to match clients with the right business opportunities and achieve their goals and yours.