Unfavorable weather and sluggish consumer demand were cited by the CRFA as being responsible for the sub-par sales growth at restaurants and bars.
Sales at fullservice restaurants rose 3% in the first seven months of 2007, down from 3.7% during the same period in 2006. While fullservice restaurant sales were strong in Western Canada, growth in this segment was limited by restrained consumer spending in Quebec, Manitoba, Nova Scotia and New Brunswick.
Limited-service restaurants posted the biggest slowdown, with 3.1% growth in the first seven months of 2007 compared with 8.7% in the first seven months of 2006. Limited-service restaurant sales surged 9.6% in Alberta and 6.2% in Quebec, but other provinces saw more modest gains or declines.
Strong growth in Canada