Canada’s restaurant industry continues to feel the pain as consumers, strapped financially these days, are eating out less.
In a report released Thursday, Restaurants Canada said 80% of Canadians are eating out less often due to the rising cost of living, up from 75% a year ago. Restaurants Canada’s 2026 Foodservice Facts report said the biggest jump is in households earning $100,000 or more (78% compared to 70% in 2025).
Despite this, Canadians continue to find ways to frequent restaurants, making 24 million restaurant visits daily. Six in 10 Canadians (61%) say they would visit a table-service restaurant more often if they had more disposable income, up from 53% in 2025, demonstrating the important role restaurants play in the day-to-day lives and quality of life of Canadians, said the report.
“Canadians still want the option of getting a meal at a restaurant or picking up take-out on the way home from a busy workday, but increasingly they have to make difficult choices about where and how much they can spend,” said Chris Elliott, Chief Economist and Vice-President of Research of Restaurants Canada. “The good news is they are finding new ways to dine out while keeping costs down. The challenge for restaurants is that operating costs remain elevated, putting continued pressure on already-thin margins.”
The organization said annual restaurant sales are projected to reach nearly $130 billion this year, more than double what they were in 2011. Despite record sales, restaurant profitability remains under significant pressure. The industry’s average pre-tax profit margin is just 4.1% – the equivalent of earning a profit only on the last day of a typical 30-day month. Four in 10 (41%) restaurant companies are operating at a loss or just breaking even, up from just 12% in 2019.
“Our industry is a part of every community in the country and of Canadians’ daily lives. The dollars spent at restaurants stay local, through jobs, purchases from Canadian suppliers, and taxes,” said Kelly Higginson, President and CEO of Restaurants Canada. “The challenges we’re facing – chronic rising costs, Canadians cutting back on visits, and trade uncertainty – have consequences far beyond the viability of individual restaurants. They have a direct impact on the broader economy, affecting jobs, Canadian suppliers, and an industry that provides millions of meals to Canadians every day.”
“Foodservice Facts shows why the economic health of restaurants matters well beyond our industry. Restaurants are major employers, major purchasers from Canadian suppliers and an important part of how Canadians eat every day. Creating the conditions for restaurants to operate, invest and grow strengthens communities and the broader Canadian economy.”
Restaurants Canada said the industry employs 1.2 million workers, including nearly 500,000 youth and continue to be the number one source of first-time jobs. They purchase $43 billion in food and beverage products every year – 68% of it from Canadian suppliers, including more than 80% for dairy, chicken, and beef. Every dollar spent in a restaurant generates $2.25 across the broader economy and sustains nearly 300,000 spin-off jobs in other industries.
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