Now might be a good time for advertisers to buy space in and around Canadian restaurants and bars, according to the August insights report from the Canadian Out of Home Marketing and Measurement Bureau (COMMB).
Following the 2020 pandemic dip, the resto-bar industry is experiencing a revival, in some cases surpassing pre-COVID levels. In the first quarter of this year, COMMB says restaurant visits increased by 11% and spending grew by 18% compared to the same time the previous year. That aligns with a trend Statistics Canada has been seeing, estimating business to be more than $1 million higher year-over-year in April.
COMMB attributes the reassurance to several expected factors, including the return to offices and participation in more activities outside the home.
The return to regular weekday routines, in particular, has increased visits to food service outlets throughout the day. Breakfast and morning visits have grown year-over-year with demand being up by 13%. Lunch, dinner and afternoon snack visits grew by 10%, 10% and 8%, respectively, compared to the previous year.
According to Statistics Canada, limited-service eating places experienced less impact from the pandemic, quicker recovery and even surpassed pre-pandemic sales compared to other resto-bar subsectors. This trend is likely due to the availability take-out and delivery services, and the growing consumer reliance on these services.
The popularity of food delivery services continues to grow post-pandemic with most Canadians using online platforms to order. An average online order is $32 and the food delivery market is
expected to reach $98 billion by 2027. Students and people with higher incomes are more likely to order food online, especially if they have children.
Patio dining has become increasingly important to Canada’s resto-bar industry, particularly with its surge during the pandemic. According to a report from Vucurevich Simons Advisory Group, adding an outdoor patio has been shown to increase a restaurant’s gross profits up to 5%, with programs from both federal and municipal governments offering incentives for restaurants to add or expand their patios.
