Chapter 4. Food and Beverage Services
4.2 Types of Food and Beverage Providers
While there are many ways to analyze the sector, in this chapter we take a market-based, business-operation approach based on the overall Canadian market share from the Restaurants Canada Market Review and Forecast (Restaurants Canada, 2019). The following sections explore the types of food service operations in Canada.
There are two key distinctions: commercial foodservice, which comprises operations whose primary business is food and beverage, and non-commercial foodservice establishments where food and beverages are served but are not the primary business.
Let’s start with the largest segment of F&B operations, the commercial sector.
Commercial Operators
Commercial operators make up the largest segment of F&B in Canada with just over 80% market share (Restaurants Canada, 2019). It is made up of quick-service restaurants, full-service restaurants, catering, and drinking establishments. Let’s look at each of these in more detail.
Quick-Service Restaurants
Formerly known as fast-food restaurants, quick-service restaurants, or QSRs, makeup 44.4% of total food sales in Canada (Restaurants Canada, 2019). This prominent portion of the food sector generally caters to both residents and visitors and is represented in areas that are conveniently accessed by both. Brands, chains, and franchises dominate the QSR landscape. While the sector has made steps to move away from the traditional fast-food image and style of service, it is still dominated by both fast food and food fast; in other words, food that is prepared and purchased quickly, and generally consumed quickly.
Take a Closer Look: The First McDonald’s In Canada
The first McDonald’s restaurant in Canada opened in Richmond, BC, in 1967. Located on No. 3 Road, it featured a sleek almost space-age design. To see a picture of the location, visit McDonald’s: Then and Now.
Convenience and familiarity are key in this sector. Examples of QSRs include:
- Drive-through locations
- Stand-alone locations
- Locations within retail stores
- Kiosk locations in shopping centres
- High-traffic areas, such as major highways or commuter routes
Full-Service Restaurants
With 44.2% of the market share (Restaurants Canada, 2019), full-service restaurants are perhaps the most fluid of the F&B operation types, adjusting and changing to the demands of the marketplace. Consumer expectations are higher here than with QSRs (Parsa, Lord, Putrevu, & Kreeger, 2015). The menus offered are varied, but in general, reflect the image of the restaurant or consumer’s desired experience. Major segments include fine dining, family/casual, ethnic, and upscale casual.
Fine dining restaurants are characterized by highly trained chefs preparing complex food items, exquisitely presented. Meals are brought to the table by experienced servers with sound food and beverage knowledge in an upscale atmosphere. The concept of fine dining has evolved over the years. It was