Food service and drinking place sales rise for second month: Statistics Canada

Ottawa – Sales in food services and drinking places rose by 26.8 per cent to $3.9 billion from May 2020 to June 2020, the second consecutive monthly increase, according to the latest report from Statistics Canada.

With most businesses having reopened under new rules and restrictions, higher sales were reported across all industry groups and in all provinces and territories.

The largest increases in dollar terms were reported at full-service restaurants (+58.3 per cent), followed by limited-service eating places (+12.8 per cent), drinking places (+135.4 per cent) and special food services (+21.5 per cent).

When data for June 2020 are compared with data for June 2019, unadjusted sales were down by over one-third (-37.1 per cent).

Further information can be found in the “Food Services and Drinking Places Sales” dashboard. This web application provides access to data on sales in food services and drinking places for Canada by province and territory and allows users to compare data through interactive maps and charts.

COVID-19

Businesses continued to reopen in June, with all provinces allowing dine-in services following provincial guidelines. According to Statistics Canada research, 29 per cent of food service and drinking place operators reported having been closed at some point in June, compared with 42 per cent in May and 56 per cent in April. Also, 12 per cent reported having been closed for the entire month of June, compared with 22 per cent in May and 41 per cent in April.

Sales in the food services and drinking places subsector increase as COVID-19 restrictions ease

The largest increases in dollar terms were reported at full-service restaurants (+58.3 per cent), followed by limited-service eating places (+12.8 per cent), drinking places (+135.4 per cent) and special food services (+21.5 per cent).

Sales at full-service restaurants increased by more than half in June 2020 (+58.3%) compared with May 2020. Sales began to recover at full-service restaurants as dining rooms and patios continued to reopen in the country. One-third (32 per cent) of full-service restaurants were closed for part of June, compared with 44 per cent in May and 65 per cent in April. One-tenth (11 per cent) were closed for the entire month of June, compared with 21 per cent that were closed for the entire month of May and 47 per cent that were closed for the entire month of April.

Sales at limited-service eating places increased by 12.8 per cent. The number of limited-service eating places that were closed decreased to 13 per cent in June, down from 25 per cent in May and 31% in April. One in 10 (10 per cent) was closed for the entire month, similar to May (11 per cent), but an improvement over April (18 per cent).

Sales at drinking places saw the largest rebound in percentage terms (+135.4 per cent), as bars, pubs and some nightclubs started to reopen. More than half (56 per cent) of drinking places were closed at some point in June, compared with 85 per cent in May and 89 per cent in April. Some reopened throughout the month – less than one-quarter (23 per cent) were closed for the entire month of June, compared with 59 per cent in May and 79 per cent in April.

Prices for food purchased from restaurants, as well as prices for alcoholic beverages served in licensed establishments, were up two per cent in June 2020 compared with June 2019.

Sales of special food services increased by one-fifth (+21.5 per cent), as food service contractors, caterers and mobile food trucks started to serve businesses and customers again. One-third (34 per cent) of special food services reported having been closed for part of June, compared with 49 per cent in May and 60 per cent in April. One-fifth (21 per cent) reported having been closed for the entire month, compared with 34 per cent in May and 49 per cent in April.

Sales in food services and drinking places increase in every province and territory

All provinces and territories reported an increase in sales in June 2020. Ontario (+19.0 per cent), Quebec (+38.3 per cent), British Columbia (+30.4 per cent) and Alberta (+30.3 per cent) reported the largest increases in dollar terms.

Sales in food services and drinking places  decrease year over year

The figures in this section are based on unadjusted (that is, not seasonally adjusted) estimates.

Because of the effects of COVID-19 on food services and drinking places , unadjusted sales for June 2020 were down by 37.7 per cent compared with June 2019. Although year-over-year sales have been improving since April, they fell in each of the following industry groups: full-service restaurants (-51.8 per cent), limited-service eating places (-15.2 per cent), special food services (-70.9 per cent) and drinking places (-68.3 per cent).

Year-over-year sales decreased in each province, with Ontario (-45.7 per cent), Quebec (-41.0 per cent), British Columbia (-32.7 per cent) and Alberta (-26.0 per cent) reporting the largest declines in dollar terms.

Prices for food purchased from restaurants, as well as prices for alcoholic beverages served in licensed establishments, were up two per cent in June 2020 compared with June 2019.