News

Panera leads staggering fast casual growth in Canadian market

June 27, 2014

The Top 200 Canadian restaurant chains achieved $29.2 billion in sales last year, accounting for approximately 60 percent of the country’s total restaurant sales. Technomic's Top 200 Canadian Chain Restaurant Report, developed in partnership with Kostuch Media, also shows that the largest 200 chains experienced sales growth of more than 4 percent in 2013, while unit growth was up nearly 3 percent, to total 25,710 stores.

The fast casual segment growth is setting the pace in the market, with 22 chains cracking the list for the first time. They represent nearly 3 percent ($795M) of total top 200 sales, which is an increase of 14 percent year over year.

According to a news release, the fastest growing fast casual chains on the list include:

1. Panera, $17M in sales; 85 percent sales growth; 33 percent unit growth.
2. Five Guys, $63M in sales; 49 percent sales growth; 32 percent unit growth.
3. ThaiZone, $30M in sales; 40 percent sales growth; 50 percent unit growth.
4. Hero Certified Burgers, $39M in sales; 37 percent sales growth; 46 percent unit growth.
5. Thai Express, $80M in sales; 32 percent sales growth; 20 percent unit growth.

Limited versus full

Additionally, Technomic's Top 200 Canadian Chain Restaurant Report found that limited-service chains accounted for nearly 74 percent ($21.5 billion) of total Top 200 sales and 86 percent of units (22,073).

Sales increased almost 5 percent from the prior year, and units increased 3 percent. The fastest-growing limited-service menu segments were "all other" (donut, healthy, other beverage, other ethnic, poutine and snack), Asian and burger — up 10 percent, 7 percent and 6 percent, respectively.

Full-service chains saw sales grow 3 percent to $7.7 billion in 2013. Overall, full-service chains netted an increase of almost 2 percent in unit count to a total of 3,637. The full-service segment accounted for 26 percent of sales and 14 percent of Top 200 units.

"Growth in the fast casual subsegment is intensifying," Technomic EVP Darren Tristano said in the release. "Burger, Mexican and Asian fast casual concepts are poised for greater expansion. With a focus on freshness, quality, customizable menu offerings and an appealing ambiance, they are in a sweet spot between fast food and full service. In a highly competitive climate, differentiation is key, and fast casual restaurants are hitting the mark."