Cara Operations Ltd.91裸聊视频檚 deal to buy The Keg restaurants is the latest consolidation move in an industry dominated by three operators that account for one-sixth of restaurant sales in Canada.

Cara, MTY Food Group Inc. and Restaurant Brands International Inc. brought in an estimated $10 billion from a total $60 billion spent at restaurants last year, according to figures from market-research firm NPD Group.

And experts suggest the trio are likely to see their market share grow as the industry consolidates further 91裸聊视频� which could benefit consumers, but see some independent eateries disappear from the competitive landscape.

91裸聊视频淭hey are the three largest restaurant consolidators in the marketplace,91裸聊视频� said Robert Carter, NPD91裸聊视频檚 executive director of food service.

Together, they collectively operate thousands of restaurants in Canada under a variety of banners.

Cara 91裸聊视频� now the country91裸聊视频檚 largest full-service restaurant player 91裸聊视频� runs about 1,200 locations, including Swiss Chalet, Harvey91裸聊视频檚 and East Side Mario91裸聊视频檚.

Canada91裸聊视频檚 food court king, MTY, owns more than 2,450 locations, with brands that include quick-service staples like Country Style, Mr. Sub, ManchuWOK, Extreme Pita, Pinkberry and Villa Madina.

Meanwhile, RBI 91裸聊视频� the parent company of Tim Hortons, Burger King and Popeyes Louisiana Kitchen 91裸聊视频� operates an estimated 4,100 restaurants in Canada.

As the restaurant market is relatively flat, said Carter, restaurant operators are focused on growing their portfolios by bringing established chains into their fold.

Last year, sales at full-service restaurants fell two per cent to $21 billion, while sales at fast-food outlets rose three per cent to $27 billion, according to NPD data.

In a move telegraphing the intended focus of its portfolio, Cara sold food court staple ManchuWOK to rival MTY in 2014.

Its latest choice to buy The Keg restaurants is 91裸聊视频漜onsistent with Cara91裸聊视频檚 modus operandi over the last few years ,91裸聊视频� said Sylvain Charlebois, dean of the faculty of management at Dalhousie University.

The operator also acquired the Pickle Barrel late last year and rotisserie chicken joint St-Hubert the year prior.

RBI, which formed from a merger of Tim Hortons and Burger King, expanded its portfolio by taking over fried chicken brand Popeyes last year.

Meanwhile, MTY closed out 2017 by acquiring Imvescor Restaurant Group Inc. 91裸聊视频� a franchise and licensing business with five banners: Baton Rouge, Pizza Delight, Scores, Toujours Mikes and Ben & Florentine.

91裸聊视频淭he strategy is to buy market share,91裸聊视频� Carter said.

Additionally, restaurant consolidators are cherry picking brands that are high-performing and can help make them more profitable, he said. The Keg, for example, is among a small sub-segment of premium casual restaurants that is experiencing strong growth in traffic and sales, according to NPD.

With multiple brands, operators can streamline their strategies such as by creating one gift card that can be used at many restaurants 91裸聊视频� options to attract consumers that aren91裸聊视频檛 available to smaller companies, Carter said.

Consolidation could also benefit the consumer as the companies pass down savings from greater economies of scale to the consumer, he added, but independent restaurant owners may suffer as a result of increasing consolidation.

91裸聊视频淚 think what it does, ultimately, is continues to put competitive pressure on the marketplace in the form of making the smaller chains and the regional players strengthen their games,91裸聊视频� Carter said.

More than 60 per cent of Canada91裸聊视频檚 roughly 72,000 restaurants are regional chains or individual units, according to NPD. Carter believes they91裸聊视频檒l suffer from not having the huge marketing muscle that exists behind the big chain concepts and will have to become much more strategic to establish their difference.

91裸聊视频淚 think it91裸聊视频檚 going to be a situation where the strong survive and evolve,91裸聊视频� he said.

91裸聊视频淭he ones that are not evolving and adapting to the market changes will struggle and go out of business.91裸聊视频�

Companies in this report: (TSX:CARA, TSX:MTY, TSX:QSR, TSX:IRG)

Aleksandra Sagan, The Canadian Press

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