Canada and the U.S. Unite in Restaurant Expansion

From coast to coast, dining establishments lead the pack in new store openings. In Canada, this sector accounts for the most announcements for store openings and site searches, followed by apparel & accessories, grocery, and beauty.

Whether at shopping centres, street-front locations in high-traffic areas, or food courts, new eateries are popping up fast. Sizes vary from 200 square feet for BarBurrito quick service restaurant (QSR) counters to 13,000 square feet for Chinese-Canadian buffet restaurant Mandarin. However, the most required range is between 1,000 and 2,000 square feet.

In the U.S., retail store openings announced between 2024 and 2025 year-to-date total over 7,700 new stores, with nearly 3,000 of these from restaurants. This is followed by grocery stores (propelled by Aldi's plans to open 800 new stores by 2028) and discount and dollar stores, including Dollar General and Burlington.

In both countries, QSRs are the most popular restaurant type. Odd Burger, BarBurrito Fresh Mexican Grill, and Mad Radish are among the most active in Canada. Good Earth Coffeehouse, Paris Baguette, and % Arabica have boosted new coffee shop announcements. In the U.S., McDonald’s, Chipotle, Wingstop, and coffee chain Dutch Bros are taking the cake.

Accommodation and food services in Canada and the U.S. projected to generate more than 200,000 new jobs in 2025

In 2023, Canadians and Americans returned to the habit of dining out, reaching a balance close to pre-pandemic levels between dining out and grocery shopping. Americans spend proportionally more in restaurants, with nearly half of their food budget going to take-out, delivery, and sit-down meals. On the other hand, Canadians spend 39 percent of their food budget on restaurants.

Although both countries share busy lifestyles and the desire for convenience, Americans appear to be moving away from cooking, as the proportion of dining out continues to rise. In Canada, however, disposable income is a deterrent as Canadians have been squeezed by the surge in the cost of living.

Calgary is sizzling hot in the Canadian restaurant scene, with site searches indicating that Alberta’s largest market will continue to lead in restaurant openings this year.

Calgary has the highest growth in restaurant spending of any major Canadian market. Over the past five years, Calgary’s spending on dining out has grown 7.5 percent annually – the fastest among major markets, with notable per capita growth.

Calgarians are putting their money where their mouth is, spending a hearty 44 percent of their food budget on dining out. They were also quick to return after the 2020 temporary closures – by 2022, spending had returned to 2019 levels.

In the U.S., Houstonians are true foodies, allocating a whopping 60 percent of their food budget to eating out. This makes Houston residents among the top dining-out enthusiasts in U.S. metro areas.

Like Calgary, Houston has a more affordable cost of living compared with other major U.S. metro areas. Both cities’ strong job markets and relatively high salaries, particularly in the energy sector, also support the restaurant industry.

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Canada: Canada retail market dynamics

US: United States Retail Market Dynamics Q4 2024