F&B Service Digital Marketing Strategy Guide 2025

The Canadian food and beverage (F&B) industry is experiencing a period of dynamic growth, marked by an increase in Michelin-star restaurants across the country[1]. As we look towards 2025, it’s clear that digital marketing will play an even more crucial role in the success of small and medium-sized businesses (SMBs) in this sector. This e-book provides a comprehensive overview of the current state of digital marketing in the Canadian F&B industry, offering valuable insights and actionable steps for F&B owners to optimize their online presence and achieve their business goals in 2025.

The State of Digital Marketing in the Canadian F&B Industry in 2024

Canada boasts a highly connected population, with a staggering 94.3% having internet access and 81.9% actively engaging on social media platforms as of early 2024[2]. This widespread digital adoption has profoundly impacted consumer behavior, making digital channels indispensable for businesses aiming to connect with their target audience. Furthermore, the increasing need for advertising services, driven by the growth of digital marketing, has led to a surge in marketing and advertising spending. Companies across all sectors are recognizing the value of new digital techniques such as programmatic ad buying, viral marketing, and connected TV advertising to more effectively target consumers [3].

Digital Marketing Adoption Rates

The F&B sector has witnessed a significant rise in online shopping, particularly following the shift in consumer behavior during 2020 [4]. Many consumers embraced online platforms for ordering food and beverages, leading to increased adoption of e-commerce by F&B businesses. This trend is expected to continue, with research indicating a growing preference for the convenience of online ordering and delivery among consumers. This shift is further fueled by the popularity of the “click and collect” model in Canada, where customers order online and pick up their orders in-store, offering a blend of convenience and efficiency [4].

Popular Digital Marketing Channels

Canadian F&B businesses are utilizing a variety of digital marketing channels to engage with customers. Some of the most popular channels include:

• Social Media Marketing: Platforms like Instagram have witnessed substantial growth in their Canadian ad audience, with a 21.1% increase between January 2023 and January 2024 [2]. This highlights the importance of social media for reaching a broad audience and building brand awareness. For example, a successful campaign by a local bakery chain used Instagram to showcase visually appealing images of their new seasonal pastries, resulting in a significant increase in foot traffic and online orders.
• Content Marketing: Creating valuable and engaging content is crucial for attracting and retaining customers in the F&B industry [5]. This can include blog posts, recipes, videos, and social media updates that showcase the brand’s unique offerings and expertise. A popular strategy is creating video content around food preparation and recipes, offering valuable tips and entertainment to viewers while subtly promoting the brand’s products.
• Search Engine Optimization (SEO): With consumers increasingly relying on search engines to find local businesses, optimizing online presence for relevant keywords is essential for driving organic traffic and increasing visibility [6]. For instance, a restaurant can optimize its website for keywords like “best Italian restaurant in Toronto” to attract local customers searching for dining options.
• Email Marketing: Building an email list and sending targeted campaigns can be an effective way to nurture customer relationships, promote special offers, and drive sales. Personalized email campaigns with exclusive discounts and promotions have proven successful in driving repeat business and customer loyalty.
• Website Development: A well-designed website serves as the online storefront for F&B businesses, providing essential information about their menu, location, and brand story. An effective website should be user-friendly, visually appealing, and optimized for mobile devices to cater to the growing number of consumers accessing information on their smartphones.

Effectiveness of Digital Marketing Strategies

Digital marketing strategies have proven to be highly effective for Canadian F&B businesses. By leveraging digital channels, businesses can:

• Increase Brand Awareness: Reaching a wider audience through social media and online advertising can significantly enhance brand visibility and recognition.
• Drive Website Traffic: SEO and content marketing efforts can attract potential customers to the business website, where they can learn more about the offerings and make purchases.
• Generate Leads and Sales: Targeted digital marketing campaigns can effectively capture leads and convert them into paying customers.
• Improve Customer Engagement: Social media and email marketing provide opportunities for businesses to interact with customers, build relationships, and foster loyalty. For example, a café can use social media polls and Q&A sessions to engage with customers and gather feedback on their preferences, fostering a sense of community and loyalty.
• Drive Repeat Business and Upselling: E-commerce platforms provide opportunities to encourage repeat purchases and upsell customers with personalized recommendations and targeted promotions [4].

Challenges Faced by Canadian F&B Businesses in Digital Marketing

While digital marketing offers numerous opportunities, F&B businesses also face certain challenges:

• Competition: The online marketplace is highly competitive, requiring businesses to develop unique and effective strategies to stand out.
• Cost: Digital marketing initiatives can require significant investment, particularly for small businesses with limited budgets.
• Measuring ROI: Accurately tracking the return on investment (ROI) of digital marketing campaigns can be challenging, requiring sophisticated analytics and reporting tools.
• Keeping Up with Trends: The digital landscape is constantly evolving, with new technologies and platforms emerging regularly. F&B businesses need to stay informed and adapt their strategies accordingly.
• Order Fulfillment and Shipping: High shipping costs can be a significant challenge for online F&B businesses, potentially deterring customers and impacting profitability. [7]
• Labor Shortages: The Canadian F&B sector is facing a significant labor shortage, which can impact a business’s ability to implement and manage digital marketing initiatives effectively [8]. This challenge underscores the importance of efficient resource allocation and potentially leveraging automation tools to streamline marketing tasks.

The challenges highlighted above emphasize the need for F&B businesses to adopt a strategic and adaptable approach to digital marketing. By carefully analyzing their resources, target audience, and the evolving digital landscape, businesses can overcome these hurdles and leverage digital channels for sustainable growth.

Analytics-Based Forecast for 2025

Building on the current trends and data analysis, the following forecasts can be made for digital marketing in the Canadian F&B industry in 2025:

Projected Growth of Digital Marketing

Digital marketing is expected to continue its growth trajectory in the Canadian F&B industry. With increasing internet and mobile penetration, consumers will increasingly rely on digital channels for information, communication, and transactions. This necessitates F&B businesses to further integrate digital marketing into their overall business strategy. This growth will be driven by the increasing importance of building direct relationships with consumers online [4]. Personalized marketing and effective customer relationship management (CRM) strategies will be crucial for fostering loyalty and driving repeat business.

Emerging Trends and Technologies in 2025

Several emerging trends and technologies are likely to shape the future of digital marketing for F&B in 2025:

• Artificial Intelligence (AI): AI-powered tools can be used to personalize customer experiences, automate marketing tasks, and gain deeper insights from data. This includes AI-driven chatbots for customer service, personalized recommendations based on past orders, and targeted advertising campaigns.
• Personalization: Tailoring marketing messages and offers to individual customer preferences will become increasingly important for driving engagement and conversions.
• Video Marketing: Video content is highly engaging and effective for showcasing food and beverage products. Short-form video platforms like TikTok are gaining popularity and offer opportunities for F&B businesses to reach a younger audience.
• Influencer Marketing: Collaborating with food bloggers and social media influencers can help F&B businesses reach a wider audience and build credibility.
• Digital Transformation: F&B businesses need to embrace digital transformation to optimize their operations and marketing efforts. This includes leveraging technology for online ordering, delivery management, inventory tracking, and customer data analysis [3].

Predicted Changes in Consumer Behavior in 2025

Consumer behavior and preferences related to digital marketing are expected to evolve in the following ways in 2025:

• Increased Demand for Convenience: Consumers will continue to prioritize convenience, with online ordering, delivery, and mobile payments becoming even more prevalent.
• Focus on Sustainability: Consumers are increasingly conscious of environmental and social responsibility. F&B businesses that prioritize sustainability and ethical practices will resonate with this growing segment of consumers.
• Emphasis on Health and Wellness: Health-conscious consumers are seeking healthier food options and detailed nutritional information. F&B businesses need to cater to this demand by providing transparent and informative content about their products. This includes highlighting the health benefits of specific ingredients and menu options, such as those with organic or locally sourced produce. The growing interest in Asian F&B products, particularly fermented foods like kimchi, presents an opportunity for businesses to cater to this health-conscious segment by emphasizing the nutritional value of their offerings [9].
• Increased Use of Comparison Shopping Engines: Consumers are increasingly utilizing Comparison Shopping Engines (CSEs) to compare prices and offerings from different F&B businesses [7]. This highlights the need for competitive pricing strategies and online reputation management to ensure positive reviews and ratings on these platforms.

Checklist for F&B Owners: Making the Most of Your 2025 Digital Marketing Blueprint

To succeed in the evolving digital landscape, F&B owners should consider the following checklist:

• Define Your Target Audience
  •  Identify your ideal customer profile, including their demographics, interests, and online behavior.
  • Use this information to tailor your marketing messages and choose the most effective digital channels to reach them.
• Build a Strong Online Presence
  • Develop a professional website that is mobile-friendly and easy to navigate.
  • Create engaging social media profiles that showcase your brand and offerings.
  • Optimize your online presence for local search to attract customers in your area.
  • Develop a comprehensive online business plan that outlines e-commerce strategies, target market analysis, and digital marketing approaches.
• Create High-Quality Content
  • Develop valuable and informative content that resonates with your target audience.
  • Use a variety of formats, such as blog posts, videos, and infographics, to keep your content fresh and engaging.
• Leverage Social Media Marketing
  • Maintain an active presence on relevant social media platforms.
  • Run targeted advertising campaigns to reach a wider audience.
  • Engage with your followers and build relationships.
• Invest in SEO
  • Optimize your website and content for relevant keywords.
  • Build high-quality backlinks to your website.
  • Track your SEO progress and make adjustments as needed.
• Utilize Email Marketing
  •  Build an email list by offering valuable incentives.
  • Segment your list to send targeted campaigns.
  • Track your email marketing metrics and optimize your campaigns for better results.
• Embrace Emerging Technologies
  • Explore the use of AI-powered tools to personalize customer experiences and automate marketing tasks.
  • Consider incorporating video marketing and influencer marketing into your strategy.
  • Stay informed about new technologies and platforms that can enhance your digital marketing efforts.
• Monitor and Analyze Your Results
  • Track key metrics, such as website traffic, social media engagement, and conversion rates.
  • Use analytics tools to gain insights into your audience and campaign performance.
  • Make data-driven decisions to optimize your digital marketing strategy.

Digital marketing is no longer an option but a necessity for F&B businesses in Canada. By understanding the current trends, embracing emerging technologies, and implementing a comprehensive digital marketing strategy, SMBs can effectively reach their target audience, build brand awareness, and drive business growth in 2025 and beyond. This includes building strong online presences, creating engaging content, leveraging social media and SEO, and utilizing email marketing to nurture customer relationships. It is also crucial to stay ahead of the curve by embracing emerging technologies like AI and adapting to evolving consumer behaviors, such as the increasing demand for convenience, sustainability, and health-conscious options.

Partnering with a digital marketing agency that understands the nuances of the Canadian F&B industry can be invaluable in navigating this dynamic landscape. By leveraging expert knowledge and tailored strategies, F&B businesses can unlock their full potential in the digital age and achieve sustainable growth in 2025 and beyond.