1.2. Food Service Industry: A Major Player in the Economy
The food service sector is a crucial component of the hospitality industry and plays a vital role in the economy. In the United States, the restaurant industry alone is worth about $800 billion, with nearly half of consumers’ food budgets being spent on dining out. This sector is also a major employer, providing jobs for approximately fifteen million people, which represents 10% of the US workforce. There are over one million food service establishments in the country, significantly outnumbering the 53,000 lodging establishments (Egan, 2015). In Canada, the food service industry is estimated at 114.29 billion USD in 2024 with an estimate growth of 17.96% until 2029 (Mordor Intelligence Industry Reports, 2023). In 2022, there were more than 97,000 restaurants, bars and caterers across the country, with more than 1,200,000 people employed (Statistics Canada, 2025b).
In 2022, Ontario’s accommodation and food services industry employed 389,700 people, accounting for 5.1% of the province’s workforce. Employment in this sector grew by 9.4% that year and is expected to see moderate growth from 2023 to 2025. However, the sector’s recovery could be slowed by reduced discretionary spending due to inflation and a persistent labor shortage. In 2022, the industry contributed $13.0 billion to Ontario’s gross domestic product (GDP), making up 1.7% of the province’s total GDP (Government of Canada 2025a).