Accommodation and Food Services (NAICS 72): Quebec, 2024
HIGHLIGHTS
There are 207,400 people employed in accommodation and restaurant services, representing 4.7% of all jobs in Quebec.
The workforce is very young, with more than 45% under the age of 25.
After growing faster than industries as a whole over the 2022–2023 period, employment growth in accommodation and restaurant services is expected to be more modest over the 2024–2026 horizon.
Labour shortages remain an issue, but have recently eased, with fewer vacancies than before in the industry.
ABOUT THE SECTOR
Sector composition and importance
The accommodation and restaurant services industry includes a variety of establishments providing short-term accommodation, such as hotels, motels, resorts, bed & breakfasts, cottages, RV parks and campgrounds, hunting and fishing camps.
Also included are establishments whose main activity is the preparation of meals, light meals and beverages ordered by customers for immediate consumption on or off the premises. The restaurant industry is divided into four sectors: full-service restaurants, limited-service eating establishments, special food services (caterers, canteens and mobile counters) and (alcoholic) beverage establishments.
There were 207,400 people employed in accommodation and restaurant services, representing 4.7% of average employment in Quebec for the 2021–2023 period. This percentage is lower than that for Canada as a whole (5.3%) and Ontario (5.2%).
Employment in this industry is subject to significant seasonal variations. Establishments located outside densely populated areas often close at the end of the summer season, as the local market is not sufficient to justify staying in business.
| Accommodation services | Food services and drinking places | |
|---|---|---|
| 12.6% | 87.4% |
Geographical distribution of employment
More than half (54.8%) of all jobs are located in the Montréal Census Metropolitan Area (CMA). The nearby Montérégie, Laurentides and Lanaudière regions are also well represented in terms of jobs, accounting for 18.2%, 7.5% and 5.5% respectively.
The Capitale-Nationale (10.1%), Chaudière–Appalaches (4.6%) and Outaouais (4.4%) regions also account for a significant share of employment.
It is in Mauricie (5.9%), Gaspésie–Îles-de-la-Madeleine (5.4%), Capitale-Nationale (5.3%) and Saguenay-Lac-Saint-Jean (5.3%) that the share of accommodation and restaurant services in regional employment is highest.
The restaurant service sector accounts for 88% of businesses and nearly 88% of jobs in the industry. In 2019, over 70% of businesses had fewer than 20 employees, and few restaurants had more than 100 employees. This number is higher in the accommodation sector.
TABLE 1 Employment by region
| Region | Average employment 2021-2023 | Share of total employment |
|---|---|---|
| Canada | 1,048,600 | 5.3% |
| Quebec | 207,400 | 4.7% |
| Ontario | 399,100 | 5.2% |
WORKFORCE
Workforce characteristics
Slightly more women than men work in accommodation and restaurant services, accounting for almost 52.5% of the workforce. The proportion of women working in the industry is therefore higher than in all industries, where they occupy an average of 47.5% of the jobs. The proportion of women is much higher in accommodation services (56.4%), while it is 51.9% in restaurant services.
There is a high proportion of young people aged 15 to 24 in the industry. In fact, 46.9% of workers are under 25, compared to 13.2% in all industries. This strong presence of 15- to 24 year-olds is particularly pronounced in restaurant services, with a 50.4% share of employment, compared to 22.1% in accommodation services.
Reflecting the young age of the workforce and the "student job" nature of these jobs, full-time employment, at 48.4%, is proportionately much lower than in all industries, where this share is 81.9%.
The proportion of workers aged 55 and over is 13.9%, lower than in the overall Quebec workforce (21.9%), while at 26.1% in accommodation services, their proportion is higher than that Quebec-wide. It is in restaurant and beverage services where the 55+ age group is proportionally small, at just 12.2% of the workforce.
Among workers aged 25 to 54, the percentage is lower (39.2%) in accommodation and restaurant services, whereas this age group represents 64.9% of workers in Quebec.
The workforce is made up almost entirely of employees (93.7%); the number of self-employed workers is low (6.3%), and their share is lower than in the province's industries as a whole (11.5%).
The workforce in this industry is generally poorly educated, largely due to its youth. Almost a quarter (23.4%) of the workforce has no educational qualifications, which is more than double the share observed in the province's workforce as a whole (9.3%). One third of workers (32.6%) in the industry have only a high school diploma, again a much higher proportion than for the workforce as a whole (17.7%). This is because many workers are young people still in school. Conversely, the proportion of university graduates is 11.8%, compared to 31.7% for all industries.
Generally speaking, people working in accommodation services have a higher level of education than those working in restaurant services. In fact, 54.4% have a post-secondary certificate, diploma or university degree, compared to 42.5% in restaurant services.
Main occupations
The main occupations in accommodation and restaurant services are specific to this industry. At 23.4%, counter staff and kitchen helpers account for the largest share of jobs. Cooks follow with 16.6% of the jobs. Restaurant and food service managers and servers account for 15.2% and 8.2% of jobs respectively. Cashiers make up 7.8% of the accommodation and restaurant services workforce but are mainly found in retail.
TABLE 2 Main occupations in the sector
| Occupation | Average employment 2021-2023 |
Sector share |
|---|---|---|
| 65201 Food counter attendants, kitchen helpers and related support occupations | 44,080 | 23.4% |
| 63200 Cooks | 31,320 | 16.6% |
| 60030 Restaurant and food service managers | 28,680 | 15.2% |
| 65200 Food and beverage servers | 15,505 | 8.2% |
| 65100 Cashiers | 14,780 | 7.8% |
RECENT EVOLUTION
After several years of growth in which accommodation and restaurant services benefited from a steady rise in household disposable income, in 2020, in the wake of the pandemic and health measures, the industry posted a year-on-year decline of around 73,500 jobs (–28.3%). Despite a strong recovery starting in 2022, there is still a shortfall of 22,300 jobs (–8.6%) to return to pre-pandemic levels.
In the food service sector, sales continued to recover in 2023, with an increase of 13%, despite the challenges posed by the economic climate and inflation. Since the end of the pandemic, all food service segments have seen an increase in sales, but limited-service eating establishments has been able to benefit from a positive trend, enabling it to increase its share of sales in the sector as a whole from 37% to 41% between 2019 and 2023. By contrast, full-service restaurants saw their share fall from 50% to 47% over the same period.
There was a certain substitution effect with customers switching from full-service to fast-food restaurants. Several full-service restaurants also developed their pick-up and delivery service during the pandemic and have maintained it since. However, in this case, subscription costs are high, and given the low profit margins, these costs can affect restaurateurs' break-even points.
Several trends observed before the pandemic became more pronounced during the health crisis and are expected to continue in the years ahead. The ready-to-eat and ready-to-cook supply has developed and has been able to achieve sufficient sales volume to generate economies of scale. For some restaurants, it has made it possible to increase the quality and content of the menu offered for delivery or pick-up.
The restaurant business has accelerated its move into the grocery sector. While already present in grocery stores, more and more restaurants are retailing the star products used in their recipes, or meals taken from their menus. During the pandemic, this practice enabled many restaurateurs to stay in business, whereas before it was a way of expanding, developing another market segment and increasing the company's visibility.
Accommodation services had benefited from a succession of good tourist seasons through to 2019. Just over 60% of foreign visitors came from the United States, a proportion that has declined over the years with the rise of customers from Europe and Asia. Business and convention tourism generated significant spin-off effects. It prolongs the tourist season and generates traffic during off-peak periods.
However, the pandemic, with its border closures, inter-regional travel restrictions and lockdowns, effectively brought the industry's momentum to a halt. After the drastic drop in 2020, when operating revenues from accommodation services reached an all-time low ($2.9 billion), they quickly returned to growth in 2021, with pent-up demand and the return of travel habits. This trend accelerated in 2022, surpassing the 2019 level and even peaking at $4.9 billion in revenues. However, this is partly due to inflationary pressures that have pushed up the average daily room rate.
Although the average occupancy rate of establishments rose province-wide in 2023, it should be noted that the Montréal and Québec City tourism regions are still behind the 2019 level, by 2.1 percentage points (pp) and 3.1 pp respectively. The fact that business tourism represents a significant share of the tourism market in these regions, and that this niche has yet to regain its pre-pandemic vigour, could explain this gap.
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|---|---|---|---|
| Real GDP | 100 | 103 | 107 | 109 | 111 | 114 | 70 | 79 | 102 | 102 |
| Hours worked | 100 | 105 | 107 | 111 | 114 | 122 | 69 | 80 | 100 | 100 |
| Employment | 100 | 104 | 106 | 105 | 104 | 98 | 70 | 68 | 89 | 89 |
* Data is expressed as an index where 2014 = 100
JOB PERSPECTIVES
After growing faster than all industries over the 2022–2023 period as a result of the post-pandemic recovery, employment growth in the accommodation and restaurant services sector is set to continue at the start of the forecast period, but to slow thereafter.
Certain factors will thus limit growth, notably the economic climate, since restaurant and hotel outings are mainly based on discretionary household spending. High inflation in 2022 and 2023 and continued high prices, as well as declining household disposable income, could affect demand for food, beverage and accommodation services.
Difficulties in recruiting workers also remain an issue, although there are fewer vacancies than before in the industry. Employers have adjusted by eliminating certain positions for which they had received no applications, or to save money.
In addition, the influx of permanent and mostly temporary immigration has also helped the sector by increasing the pool of employees, thereby increasing competition for available positions. Although the situation has improved in the major cities, it should be pointed out that some more remote regions are still experiencing greater recruitment difficulties.
However, this situation could change significantly as measures to tighten rules and eligibility criteria to reduce the number of temporary foreign workers in low-wage jobs have been announced by the provincial and federal governments. These measures would particularly affect the Montréal region, and possibly other metropolitan areas, but could encourage some of these workers already on the territory to move outside these regions.
The employment growth will also depend on an increase in the number of leisure and business tourists from Canada and other countries, and in the number of workers frequenting restaurants and bars. In its 2023 annual report, Destination Canada forecasts a return of international tourists to 2019 levels by 2025.
Meanwhile, restaurateurs face rising operating costs. In this context, restaurants are raising prices, reducing their menus and limiting their opening hours. The number of bankruptcies rose in 2023, due in particular to the debt accumulated during the health crisis and the reduction in restaurateurs' profit margins. Several establishments that had also benefited from government support measures in the form of loans were unable to repay them, leading them to file for bankruptcy.
The pandemic has had a negative effect on the perception of work in the industry, exposing the lack of job security, low wages and benefits, varying working hours and few opportunities for professional development. These factors are beginning to influence the hotel sub-sector, as a common union front pushes for improved working conditions for members, which could lead to short-term disruptions such as strikes or protracted negotiations.
Other important aspects
Certain trends that had already begun continued during the pandemic and could transform accommodation services in the future. There is a desire among consumers to reduce their environmental footprint, forge ties with the places they visit, and support local economies. Remote work can be done from home, but also, to a lesser extent, from a multitude of locations, including restaurants and vacation destinations. Teleworkers could become a new visitor segment.
The digital shift will also accelerate in the accommodation services sector, whether for reservations, marketing and sales strategy, or a touchless travel concept limiting human contact during a stay in an accommodation establishment. Customer behaviour has also changed over the years. They routinely book online and are willing to give up services to get a better price or an optimal location.
Younger generations have different consumer values, and tourism is no exception. In response, the industry has invested heavily to upgrade facilities in line with new tastes, exploiting new consumer trends and embracing mobile technologies. In addition, competition from platforms similar to Airbnb offer collaborative tourist accommodation and have prompted many hoteliers to innovate and offer alternatives to remain competitive.
In conclusion, a number of factors could dampen the outlook for job growth in the industry. These include the strength of the recovery in international business and leisure tourism, the impact of inflation and high interest rates on household disposable income and the profitability of accommodation and restaurant service establishments, the global economic context, new trends, and difficulties in recruiting and retaining staff.
FOR FURTHER INFORMATION
Note: In preparing this document, the authors have taken care to provide clients with labour market information that is timely and accurate at the time of publication. Since labour market conditions are dynamic, some of the information presented here may have changed since this document was published. Users are encouraged to also refer to other sources for additional information on the local economy and labour market. Information contained in this document does not necessarily reflect official policies of Employment and Social Development Canada.
Prepared by: Labour Market Analysis Directorate, Service Canada, Québec Region. For further information, please contact the Labour Market Analysis Directorate at: contact the LMI team
ANNEX
TABLE A1
Geographic Distribution of Employment and Employment Outlook in Quebec, average 2021-2023
| Accommodation and Food Services | |||
|---|---|---|---|
| Region | Share of employment in Quebec |
Share of employment in the region |
AAGR* |
| QUEBEC as a whole | 100.0% | 4.7% | 8.4% |
| Abitibi-Témiscamingue | 1.3% | 3.6% | 2.6% |
| Bas-Saint-Laurent | 2.0% | 4.7% | 15.6% |
| Capitale-Nationale | 10.1% | 5.3% | 15.2% |
| Centre-du-Québec | 2.4% | 3.9% | –3.0% |
| Chaudière-Appalaches | 4.6% | 4.2% | 11.6% |
| Côte-Nord / Nord-du-Québec | 1.0% | 4.1% | –6.2% |
| Estrie | 3.5% | 4.5% | 7.4% |
| Gaspésie–Les-Îles | 0.9% | 5.4% | 2.8% |
| Lanaudière | 5.5% | 4.2% | 11.9% |
| Laurentides | 7.5% | 4.7% | 0.1% |
| Mauricie | 3.4% | 5.9% | 13.1% |
| Montérégie | 18.2% | 4.5% | 9.9% |
| Outaouais | 4.4% | 4.4% | 14.1% |
| Saguenay–Lac-Saint-Jean | 3.2% | 5.3% | 8.5% |
| Montréal(metropolitan area) | 54.8% | 4.8% | 8.8% |
* Average annual growth rate for last three years.
TABLE A2
Workforce Characteristics in Quebec, average 2021-2023
| Accommodation and Food Services | |||
|---|---|---|---|
| Characteristic | Volume | Share in the sector | Share in all sectors |
| Total employment | 207,400 | 100.0% | 100.0% |
| Males | 98,600 | 47.5% | 52.5% |
| Females | 108,900 | 52.5% | 47.5% |
| Aged 15-24 | 97,200 | 46.9% | 13.2% |
| Aged 25-54 | 81,400 | 39.2% | 64.9% |
| 55 years of age or older | 28,800 | 13.9% | 21.9% |
| Full-time employment | 100,300 | 48.4% | 81.9% |
| Part-time employment | 107,100 | 51.6% | 18.1% |
| Employee | 194,300 | 93.7% | 88.5% |
| Autonomous worker | 13,200 | 6.3% | 11.5% |
| No diploma | 48,600 | 23.4% | 9.3% |
| Graduated High School | 67,500 | 32.6% | 17.7% |
| Post secondary certificate or diploma | 66,700 | 32.2% | 41.2% |
| Grade universitaire | 24,500 | 11.8% | 31.7% |
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