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TORONTO, Aug. 7, 2025 – Despite ongoing economic uncertainty, Canada’s commercial foodservice industry has demonstrated remarkable resilience and growth in the first half of 2025. According to , traffic in the sector increased by 3.2%, while spending rose by an impressive 5.7%. These gains extend a consistent upward trend that began in mid-2021, underscoring the sector’s strength and adaptability.  

Quick-service restaurants (QSR) led the way in traffic growth, logging a 4.3% increase during the most recent quarter. Retail foodservice also showed exceptional performance, matching QSR quarterly traffic growth of 4.3% and marking its best growth in years. However, full-service restaurants experienced a modest 0.7% decline in traffic, as consumers turned to more budget-conscious options like QSR and retail foodservice to maximize their spending power.  

Independent and small-chain restaurants also outpaced large-chain competitors in traffic growth, reflecting a shift toward localized dining experiences and a growing appetite for unique, bold flavors and innovative menus that celebrate regional and cultural diversity. The industry’s ability to innovate and meet consumer needs — whether through digital ordering, value-driven promotions, convenient delivery options or menu innovation — has driven this sustained success.

Several factors have contributed to the robust performance of the commercial foodservice industry in Canada. Over the past four years, the country’s growing population has steadily bolstered demand. More recently, reduced international travel has redirected consumer dollars toward local experiences instead of costly vacations abroad. Canadians are opting for domestic travel and small indulgences, including restaurant visits.

Additionally, deal rates climbed for the sixth consecutive quarter, helping attract value-seeking consumers. Lunch has emerged as the fastest-growing daypart, supported by the steady return-to-office trend, while digital ordering options — via mobile apps, websites and text — continued their double-digit growth in each of the past three quarters. Delivery, in particular, surged by 13% in the last quarter. Independent and small-chain restaurants also outpaced large-chain competitors in traffic growth, reflecting a shift toward localized dining experiences.  

“Canada’s commercial foodservice sector has shown extraordinary resilience and adaptability, with robust growth across key segments like QSR and retail foodservice,” said Vince Sgabellone, foodservice industry analyst at Circana. “The industry’s ability to innovate and meet consumer needs — whether through digital ordering, value-driven promotions or convenient delivery options — has driven this sustained success."  

The strong performance in H1 2025 reflects Canadians’ evolving dining habits and reallocation of discretionary spending, mirroring broader lifestyle adjustments. Looking ahead, the foodservice industry’s continued focus on affordability, digital solutions and consumer convenience positions it for sustained growth in the coming quarters.

 
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Mobile ordering and delivery apps are making it too convenient for people to order meals in vs. going out to eat; To bring diners back it takes the right concepts, menus, ingredients, portion sizes, local flavors, and more

By Guy Reinbold

The most successful hotel restaurants are ones that strike a balance between personal taste and perceived value. As a consumer myself, I am sometimes guilty of dining out and thinking: “I could have made this dish better myself at home,” or “At these prices, this meal better be worth it.

The problem with this way of thinking is that people are replacing FOMO (Fear of Missing Out) with JOMO (Joy of Missing Out). That consumer mindset can be detrimental to a restaurant’s reputation and its bottom line. When I find myself questioning my dining choices, I put on my corporate director of F&B hat and try to identify the root of the problem. “What is this restaurant doing wrong? Is it the concept? The menu? The ingredients? The portion sizes? The lack of local flavor?

Here are 5 trends that chefs and F&B directors can embrace to help put joy back into the on-site restaurant experience or JODO (Joy of Dining Out):

  1. Crave-Worthy Menus: During the pandemic, people got creative and cooked their meals at home based on available ingredients and smaller budgets. To get them comfortable with dining out again, it will take a strong, often urgent desire for a specific food that quenches a taste or brings emotional satisfaction. Recalling childhood recipes and researching new spices to enhance menu items are wonderful places to start. Specialty toppings for salads. Gourmet chili dogs. Oversized chocolate bars. Giant cannoli. Bacon and cheddar biscuits drizzled with honey. Creating crave-worthy menus by elevating comfort foods is an uncomplicated way to tug at the heartstrings and get people excited again to go out to eat.
  1. Smaller Portions: People do not eat like they used to. Health conscious travelers (along with high-spending Millennials and Gen-Z consumers) do not get excited over big, unsanitary buffets with a lot of hands touching food items. They appreciate smaller portion sizes and sharing plates that allow them to sample more without eating more. Not only is this better for the restaurant’s bottom line, but it aids in the hotel’s sustainability efforts. Whenever there is food left over (especially from a large banquet), be good stewards in the neighborhood and donate remaining provisions to the local food bank.
  1. Local Flavors: Like it or not, if you are located in Maryland, you must have a mouth-watering crabcake on the menu. You may be tired of serving it, but travelers sought your restaurant out because they had a craving for that staple of the state, especially when the popular menu item is prepared with jumbo lump crab meat. Experiencing local flavors are important to travelers, but it does not have to be the same old thing. Variations exist to staple menu items, such as serving crabcakes Carolina style which have more breadcrumbs and are pan fried. Or, have fun with fusion. Add Old Bay spice to shrimp tacos or a pineapple slaw and rim margaritas with new flavors, such as Tajin. You cannot go wrong adding items to the menu that people came to your region for, like a crab and corn chowder with a sour dough bread bowl. It may seem overindulgent, but it’s flavorful and packed with pizzazz.
  1. Coffee Experiences: Coffee is not just a beverage — it’s a strategic F&B pillar that drives revenue, enhances brand perception, and caters to evolving guest expectations. In 2025, properties that treat coffee as part of their guest experience design, rather than just a utility, are gaining a competitive edge. Coffee can drive all-day revenue (from morning service to afternoon pick-me-ups and even late-night specialty drinks). It improves guest satisfaction scores and loyalty, especially among Millennials and Gen Z travelers; adds differentiation in the market; and can pair with food or dessert items, creating upselling opportunities at breakfast, brunch, and in-room service. Coffee concepts can also work across multiple outlets—room service, lobby cafés, grab-and-go stations, meeting spaces, and events.
  1. Smoke ‘Em If You Got ‘Em: Infusing drinks with aromatic smoke is a popular trend in hotels for its presentation capabilities and sensory experience. Smoking adds unique flavor profiles (oak, cherrywood, mesquite) and allows beverage teams to reinterpret classic cocktails like Old Fashioneds or Manhattans that can become branded menu highlights and customer favorites. Smoke also engages sight, smell, and taste. The visual reveal and aromatic impact of a smoked beverage leaves a lasting impression. It creates a dramatic, memorable moment, especially when prepared tableside or bar-side. On a social level, smokey drinks are highly photogenic, increasing the chances guests will share their experience online. They often command premium pricing due to the visual drama and craftsmanship; guests are more likely to splurge on a $20+ drink if it feels experiential, and even consumers with JOMO (Joy of Missing Out) will find it fun to venture out and take selfies with the smoking concoction to share with their friends.

Boutique hotels and upscale lounges especially benefit from smoked cocktails because they project a sense of innovation, mindfulness, and luxury. They align with the current "experiential luxury" trend—offering more than just food and drink, but an atmosphere and feeling. Finally, smoking cocktails, cheeses, and even charcuterie items with a variety of woods, herbs (like rosemary or sage), teas, or spices, giving bartenders and wait staff creative flexibility and allowing for seasonal or local customization, which fits perfectly into themed menus or regional F&B programming.

The f&b industry is evolving faster than ever, and the businesses that thrive will be the ones that embrace change, not resist it. Today’s diners are not just buying a meal; they want a story, a vibe, a memory. Static operations risk becoming irrelevant if they do not evolve to meet those expectations.

Adaptability = profitability. The most successful f&b operators do not just chase trends — they anticipate them, test ideas quickly, and stay emotionally connected to their guests. Embracing change is not a risk; it’s a growth strategy.

 
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Artificial Intelligence is rapidly transforming the restaurant industry, offering unprecedented opportunities for operational efficiency and enhanced customer experiences. Recent developments in AI technology, particularly the emergence of open-source models like DeepSeek, are dramatically reducing implementation costs and making advanced technologies accessible to businesses of all sizes.

One of the most promising applications is AI-powered personalization. IHOP's recent implementation of an AI recommendation system demonstrates the potential impact, with the technology driving a 10-15% increase in check averages. By analyzing historical order data, the system suggests complementary menu items, with 73% of customers adding recommended items to their orders.

Voice AI is another breakthrough technology gaining traction in the restaurant sector. Advanced voice agents can now handle complex interactions, from taking reservations to answering detailed customer queries with remarkable human-like precision. Drive-through and ordering systems are particularly benefiting from these technologies, improving customer service while reducing staff workload.

The emergence of AI agents presents exciting possibilities for restaurant operations. These specialized systems can potentially automate inventory management, schedule staff, facilitate cross-brand promotions, and even create personalized marketing campaigns. The ability to integrate these agents across different platforms could revolutionize how restaurants interact with customers and manage internal processes.

Cost considerations are rapidly changing, with open-source AI models and decentralized computing infrastructure making advanced technologies more affordable. Restaurant operators are advised to stay informed about these technological developments, exploring how AI can optimize their specific business needs.

Looking ahead, the restaurant industry stands on the cusp of a technological transformation. AI-driven solutions promise to enhance customer experiences, streamline operations, and create new revenue opportunities. Forward-thinking restaurateurs who embrace these technologies early will be best positioned to compete in an increasingly digital marketplace.