The food and beverage sector in Calgary has experienced much growth in the past six months, according to a new report by commercial real estate firm JLL.
“Calgary’s restaurant sector has led in notable announcements of new openings and site searches over the past six months. Quick service, casual dining, and ethnic cuisines (especially Asian and Mexican) are leading with a mix of chain and independent restaurants. Most are either Canadian or U.S.-based. Expanding restaurants aim for high-traffic urban and suburban areas, such as enclosed malls, open-air shopping centres, and bustling streets. They seek to attract students, families, and office workers. While space requirements range from 200 to 6,000 square feet, the most popular sizes are 1,000 to 2,500 square feet. Many operators favour easy access and drive-through capabilities, and prioritize second-generation spaces,” said the report Calgary and Surroundings Retail Trends.
“Downtown and its Plus 15 system are popular areas of interest, as are SW, SE, and NW Calgary. International chains, national brands, and local concepts are entering the market through different strategies, ranging from franchising and strategic partnerships to direct expansion. Restaurants are also responding to local preferences and experimenting with different formats, with some opening pilot locations before expanding further. Emerging concepts include express models and health-oriented options.”
Here are the five key findings from the JLL report:
- We surveyed and analyzed notable store-opening and site-search announcements in Calgary over the past six months. Results show that 47 per cent were in dining, 16 per cent in apparel and accessories, and 14 per cent in entertainment and specialty sectors.
- Restaurants are at the forefront of new openings, from fast food to ethnic-food concepts, with restaurants opening mostly in West Calgary. The entertainment sector is gaining traction with families and young professionals as large-format venues offer fun activities and dining.
- Calgary’s retail sector is booming, driven by strong retail sales and a young, diverse demographic. Clothing-accessory stores are opening in Southwest Calgary, and major malls are attracting trendy apparel brands. Growth is also strong in the luxury/high-end and niche western and indigenous markets.
- A focus on dining and mixed-use projects has contributed to reviving downtown Calgary. Stephen Avenue and 17th Avenue are becoming vibrant, pedestrian-friendly destinations. A gradual return to office, significant investments in office amenities, and strong transit-ridership recovery are also key contributors.
- Driven by international and interprovincial migration, Calgary’s high population growth is spilling over into neighbouring areas that are more affordable. Calgary leads the country in new home construction and policies to enhance supply.
“With the food and beverage sector booming, several entertainment operators are opening new locations and renovating existing venues. Bowling, pickleball, and golf simulators are among the emerging concepts. These entertainment venues are large spaces that combine fun activities with food and beverage, taking advantage of high-traffic locations such as enclosed malls,” said JLL.
“This is part of a larger trend in experiential retail, which provides unique interactive experiences not available online for families and young professionals.
“Calgary has the highest restaurant-spending growth across major Canadian markets. Over the past five years, Calgary’s spending on dining out has grown 7.5 per cent annually – the fastest among major markets, with notable per capita growth. Calgarians spend on average 44 per cent of their food budget on dining out. Calgary’s restaurant spending experienced a slight decline during the 2020 temporary closures, followed by a rapid recovery once restaurants reopened. In 2022, spending returned to 2019 levels.”
The JLL report said premier malls such as CF Chinook Centre, CF Market Mall, and Southcentre Mall have seen an increase in fashion and accessories concepts this past year. Openings range from jewellery and footwear to specialty fashion, including luxury, high-end, and local niche businesses. Notable trends include the expansion of the luxury market, a focus on western and indigenous styles reflecting regional preferences, and a larger presence in suburban areas. The arrival or expansion of international concepts, particularly at CrossIron Mills, reinforces Calgary’s appeal as a major retail market in Western Canada. Uniqlo − which is targeting store locations in major shopping malls in North America – has added Calgary to its expansion list. A second location opened at CrossIron Mills in 2024. Encouraged by its early success in Canada, the U.K.’s JD Sports has also included Calgary in its rapid expansion across North America. Calgary’s population is particularly young, which appeals to fashionable firms like Uniqlo and JD Sports.
“Retail sales in Calgary have had one of the highest rates of growth over the past five years, fuelled by strong population growth. Cannabis, general merchandise, jewelry, luggage, and leather goods have outperformed in sales during this period while home furnishings, convenience, clothing, and accessories underperformed. On a per capita basis, Calgary’s retail sales, like those in the rest of Canada, have slipped in recent years. However, sales are set to rebound after inflation subsided and interest rates began to decline in the second half of 2024, freeing shoppers’ disposable income,” noted the report.
“Calgary’s downtown strategy aims for more residential units, fewer empty offices, and more shoppers. It seeks to make public spaces, such as Stephen Avenue and Olympic Plaza, friendlier to pedestrians. Downtown also aims to strengthen its position as a cultural and entertainment hub. Stephen Avenue: The eastern section will become a shared street, with limited vehicle access and a focus on pedestrians. This will create an ideal environment for retail, cafes, and pop-up events. Concorde Entertainment Group recently opened new food destination Pineapple Hall on Stephen Avenue Place. In turn, the core section of Stephen Avenue already has retail and commercial space and will continue to focus on foot traffic to remain a popular meeting spot. 17th Avenue: The new developments on 17th Avenue solidify it as one of Calgary’s major retail corridors. These buildings combine retail space with residential units – boosting foot traffic, supporting local businesses, and preserving the avenue’s unique identity.”
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