Profit Foodservice in Canada

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Profit Foodservice in Canada
Published on December 2010

Report Summary

Datamonitor's Profit Foodservice in Canada industry profile is an essential resource for top-level data and analysis covering the Profit
Foodservice industry. It includes data on market size and segmentation, plus textual and graphical analysis of the key trends and
competitive landscape, leading companies and demographic information.

Scope

* Contains an executive summary and data on value, volume and/or segmentation

* Provides textual analysis of Profit Foodservice in Canada's recent performance and future prospects

* Incorporates in-depth five forces competitive environment analysis and scorecards

* Includes a five-year forecast of Profit Foodservice in Canada

* The leading companies are profiled with supporting key financial metrics

* Supported by the key macroeconomic and demographic data affecting the market

Highlights

* Detailed information is included on market size, measured by value and/or volume

* Five forces scorecards provide an accessible yet in depth view of the market's competitive landscape

Why you should buy this report

* Spot future trends and developments

* Inform your business decisions

* Add weight to presentations and marketing materials

* Save time carrying out entry-level research

Market Definition

Foodservice is defined as the sale of food and drinks for immediate consumption either on the premises from which they were bought,
or in designated eating areas shared with other foodservice operators, or in the case of takeaways transactions, freshly prepared food
for immediate consumption.. Datamonitor's definition excludes sales through vending machines and is restricted to sales in specific
foodservice channels (please see channel definitions below). Various channels have been grouped together in what is called the

Profit Foodservice in Canada Page 1/5


"Profit sector" - this sector is characterised by the fact that no subsidy is paid (either directly or indirectly) to anyone participating in the
foodservice transaction.. That is that neither the consumer nor the foodservice operator receives any subsidy. This includes the
following channels - cafes, pubs & bars, nightclubs, full service restaurants, quick service restaurants, takeaways, hotels and lodging,
street & mobile vendors, retail locations, leisure locations, on-board locations.. All sector values are given in Operator Buying Prices,
that is the amount spent by foodservice operators on the food and drink that they serve and not the amount the consumers spend on
food and drinks (Operator Selling Prices - OSPs) in these channels.. The difference is the mark up the foodservice operator adds in
order to cover their other costs and generate a profit. This therefore values the sector in terms of the amount of money for which food
and drinks manufacturers are competing. Sector volumes are classed as the total number of visits by individuals to foodservice
locations that involve the consumption of either food, or drink, or both.. As such, if several people visit one location at once and there
is only one bill (e.g. a group dining in a restaurant), the number of transactions is counted as being one for each person in the group.
Multiple purchases made during the same visit (e.g. a person buys several drinks bought over a period of time in a bar) are counted
as one transaction.. The purchase of drink with food in the same location in the same visit is also considered as one transaction, not
two. The sector consists of the total revenues generated by cafés, pubs, clubs, nightclubs, restaurants, takeaways, hotels & lodgings,
street & mobile vendors, retail vendors, leisure vendors and on-board vendors - defined as food sold on board air, rail, sea or coach
traveling vehicles. All currency conversions were carried out at constant 2008 average exchange rates. For the purpose of this report
the Americas is deemed to comprise of Argentina, Brazil, Canada, Chile, Colombia, Mexico, Venezuela, and the US.

Table of Content

TABLE OF CONTENTS
EXECUTIVE SUMMARY 2
MARKET OVERVIEW 7
Market definition 7
Research highlights 8
Market analysis 9
MARKET VALUE 10
MARKET VOLUME 11
MARKET SEGMENTATION I 12
MARKET SEGMENTATION II 13
FIVE FORCES ANALYSIS 14
Summary 14
Buyer power 16
Supplier power 17
New entrants 18
Substitutes 19
Rivalry 20
LEADING COMPANIES 21
Cara Operations 21
McDonald's Corporation 22
Pizza Pizza Royalty Income Fund 26
MARKET FORECASTS 28
Market value forecast 28
Market volume forecast 29
MACROECONOMIC INDICATORS 30

APPENDIX 32
Methodology 32
Industry associations 33



Related Datamonitor research 33
Disclaimer 34
ABOUT DATAMONITOR 35
Premium Reports 35
Summary Reports 35
Datamonitor consulting 35

LIST OF TABLES
Table 1: Canada profit foodservice sector value: $ million, 2005'09 10
Table 2: Canada profit foodservice sector volume: million transactions, 2005'09 11
Table 3: Canada profit foodservice sector segmentation I:% share, by value, 2009 12
Table 4: Canada profit foodservice sector segmentation II: % share, by value, 2009 13
Table 5: Cara Operations: key facts 21
Table 6: McDonald's Corporation: key facts 22
Table 7: McDonald's Corporation: key financials ($) 23
Table 8: McDonald's Corporation: key financial ratios 24
Table 9: Pizza Pizza Royalty Income Fund: key facts 26
Table 10: Canada profit foodservice sector value forecast: $ million, 2009'14 28
Table 11: Canada profit foodservice sector volume forecast: million transactions, 2009'14 29
Table 12: Canada size of population (million), 2005'09 30
Table 13: Canada gdp (constant 2000 prices, $ billion), 2005'09 30
Table 14: Canada gdp (current prices, $ billion), 2005'09 30
Table 15: Canada inflation, 2005'09 31
Table 16: Canada consumer price index (absolute), 2005'09 31
Table 17: Canada exchange rate, 2005'09 31

LIST OF FIGURES
Figure 1: Canada profit foodservice sector value: $ million, 2005'09 10
Figure 2: Canada profit foodservice sector volume: million transactions, 2005'09 11
Figure 3: Canada profit foodservice sector segmentation I:% share, by value, 2009 12
Figure 4: Canada profit foodservice sector segmentation II: % share, by value, 2009 13
Figure 5: Forces driving competition in the profit foodservice sector in Canada, 2009 14
Figure 6: Drivers of buyer power in the profit foodservice sector in Canada, 2009 16
Figure 7: Drivers of supplier power in the profit foodservice sector in Canada, 2009 17
Figure 8: Factors influencing the likelihood of new entrants in the profit foodservice sector in Canada, 2009 18
Figure 9: Factors influencing the threat of substitutes in the profit foodservice sector in Canada, 2009 19
Figure 10: Drivers of degree of rivalry in the profit foodservice sector in Canada, 2009 20
Figure 11: McDonald's Corporation: revenues & profitability 24
Figure 12: McDonald's Corporation: assets & liabilities 25
Figure 13: Canada profit foodservice sector value forecast: $ million, 2009'14 28
Figure 14: Canada profit foodservice sector volume forecast: million transactions, 2009'14 29



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