- Circana
- Feb 19, 2025
- 3 min read
Updated: Apr 2, 2025
Shift suggests smaller operators are winning the footprint race and positioning themselves as growth leaders in the current market
CHICAGO, Feb. 20, 2025 — The Canadian quick-service restaurant (QSR) market is experiencing a remarkable shift, with smaller chains and independent operators emerging as key players in growth and innovation. A recent report from Circana™, The Rise of Small QSR Chains and Independents in Canada, highlights the evolving dynamics of the QSR segment, focusing on emerging consumer preferences, the rise of global cuisine, and the digital advancements reshaping the industry.
"The rise of smaller QSR chains and independents reflects a broader shift in consumer behavior and market dynamics. With Gen Z and ethnic communities leading the charge, the foodservice industry is ripe for transformation. Operators who are willing to adapt, innovate, and cater to evolving tastes will shape the future of this space. Those who hesitate may find themselves left behind."
Vince Sgabellone - Foodservice Industry Analyst at Circana
Key findings from the research include:
Smaller brands lead the way: Smaller chains added approximately 900 units from 2019 to 2023, while independent operators successfully rebuilt their presence by adding 1,000 units despite pandemic disruptions. In contrast, major QSR chains collectively declined in units in 2020, adding fewer than 200 units between 2019 and 2023.
Gen Z and ethnic communities influence trends: Favoring authentic global cuisine and brands that align with their values, Gen Z accounts for over 20% of total foodservice visits and commands a 30% share of visits to non-major chains. Ethnic consumers make up approximately one-third of all foodservice visits, and they gravitate toward newer QSR brands offering authentic global flavors.
Digital innovation gives smaller operators an edge: With a heavy focus on online ordering and digital marketing, smaller chains are using third-party aggregators at twice the rate of major chains, allowing them to reach a broader digital customer base. In fact, digital ordering accounts for a higher proportion of visits to non-major chains compared to major chains, partly due to a lack of drive-thru infrastructure and the higher concentration of digitally savvy Gen Z consumers.
Smaller chains are mastering on-premises dining experiences: While major chains dominate the grab-and-go morning meal occasion, smaller operators have cultivated environments perceived as higher quality or more unique by catering to consumers’ desire for social experiences during lunch and supper.
Learn More About Circana's Insights on Canadian Quick Service Restaurant Chains
The Rise of Small QSR Chains and Independents in Canada
In this complimentary report from Circana, we dive into how the Canadian QSR market has transformed due to digital advances and key innovative strategies.
How Smaller QSRs Are Winning Canadian Foodservice Consumers
In this article from Circana, learn how small Canadian QSR chains are capturing Gen Z's attention, adopting digital tools, and providing global flavors to drive their rapid growth and expansion.
About Circana Circana is a leading advisor on the complexity of consumer behavior. Through superior technology, advanced analytics, cross-industry data, and deep expertise, we provide clarity that helps almost 7,000 of the world’s leading brands and retailers take action and unlock business growth. We understand more about the complete consumer, the complete store, and the complete wallet so our clients can go beyond the data to apply insights, ignite innovation, meet consumer demand, and outpace the competition. Learn more at circana.com.
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