Foodservice Value Chain Initiative

Today’s Saskatchewan Foodservice Industry

The Saskatchewan foodservice industry has experienced continual growth over the past decade. The pace of growth in the past three years has outstripped that of the overall Canadian foodservice industry. There are many foodservice opportunities within the province, and with the guidance and expertise of the ACS Value Chain Specialist and fsSTRATEGY food industry consultants, producers and processors within the province will have the knowledge and tools they need to meet the needs of foodservice providers.

There are over 2,000 commercial restaurants and foodservice outlets in the province generating annual commercial foodservice sales of $1.3 billion and employing almost 24,000 workers. Total foodservice sales (commercial restaurants plus foodservice sales in hotels, institutions, retail settings and other) were estimated at $1.6 billion in 2008.
The following graphs show estimated historical total sales in the Saskatchewan foodservice industry from 2000 to 2008 and the year-over-year estimated growth compared to that of Canada.

The success of Saskatchewan foodservice operators can be attributed to many factors including:

• A strong resource and agriculture-based economy.
• Effective positioning by foodservice operators through the development of differentiated menu items.
• The use of innovative value offerings to customers during the recent economic downturn, thereby maintaining traffic and customer loyalty.
• Use of more labour-saving value-added food products, some of which have been developed and are processed in Saskatchewan.
• Effective menu planning and layout aimed at maximizing gross margins.

Geoff Wilson, President of fsSTRATEGY, says, “Foodservice operators in Saskatchewan face a positive future with the continuing growth of the Saskatchewan economy. Savvy operators can take advantage of the trend toward innovative, indigenous foods in order to differentiate themselves in the consumer’s mind.”

Key trends to watch in the foodservice industry include:

• Consumer interest in comfort foods and “staycations” during tough economic times.
• Restaurant chains focus on signature value oriented centre-of-the-plate items to differentiate themselves from their competitors and drive traffic counts. Signature desserts are important too – consumers want to spoil themselves a bit when they go out.
• The growing prominence of unique and strong flavour profiles and unique production methods in restaurant menus – again for differentiation and satisfying the more educated consumer.
• Demand for fresh, healthy food options.
• Consumers increasingly want to know the story behind their food – where it comes from and how it is prepared.
• More consumer input into the restaurant experience.
• The growing need for foodservice operators to adopt social networking as a promotional vehicle.

>>NEXT: Today's Saskatchewan Agri-Food Industry >>

For more information on the Saskatchewan Foodservice Value Chain Initiative, please contact:

Bryan Kosteroski
Value Chain Specialist
Agriculture Council of Saskatchewan
207 116 Research Drive
Saskatoon, Saskatchewan
S7N 3R3
T (306) 975-6851
kosteroskib@agcouncil.ca