“With Q2 2026 Same Store Sales Growth of 2.1%, we delivered our strongest quarterly Same Store Sales Growth in over two years, demonstrating the strength of A&W’s menu innovation and marketing. The success of our national smash-style burger promotion was the primary driver of this performance, increasing both guest counts and average cheque and contributing to our System Sales Growth of 3.9% for the quarter,” said Susan Senecal, President and CEO.
“Our bottom line results this quarter also reflect the impact of hosting our biennial A&W National Convention, which brought our franchisee community together and, as expected, created a temporary increase in our general and administrative expenses. We are also thrilled to have reached an important milestone in our Pret A Manger expansion, having opened our first franchised Pret shop at Vancouver International Airport on June 12th. We have secured additional leases and are actively pursuing new sites in Vancouver, Calgary, Toronto and Montreal, and expect to have three to four franchised Pret locations open by the end of the year.”
SECOND QUARTER HIGHLIGHTS
For Q2 2026, compared to Q2 2025
System Sales of $469.7 million increased by $17.4 million (3.9%)
Revenue increased by $2.1 million (3%) to $70.8 million
Operating costs increased by $1.1 million (3%) to $37.2 million
General and administrative expenses increased by $2.0 million (18%) to $13.1 million, largely due to the biennial A&W National Convention that was held in Q2 2026
Income before income taxes decreased by $1.2 million (7%) to $16.0 million
Adjusted EBITDA decreased by $1.1 million (4%) to $24.4 million and Adjusted EBITDA Margin decreased 260 bps to 34.5% from 37.1% as a result of the increase in general and administrative expenses
Cash Dividend of $0.480 per share was declared on June 1, 2026 and paid June 30, 2026
Opened 8 new A&W restaurants and the first franchised Pret shop
The company explained that the increase in total revenue was due to increases in revenue streams that are primarily driven by System Sales, including advertising fund contributions, service fees and revenue generated from the distribution of food and supplies. The increase in service fee revenue also reflects the continuing migration of A&W restaurants from a 2.5% to a 3.5% service fee rate, leading to a higher weighted average service fee rate. These increases were partially offset by lower equipment and turnkey revenue, reflecting a smaller proportion of new A&W restaurants opened in Q2 2026 being turnkey, and the non-recurrence of revenue from the 2025 rollout of A&W’s new point of sale system, it noted.
Susan SenecalImage: A&W Canada
“Revenue from corporate restaurants includes the revenue from the ten A&W restaurants and two Pret restaurants that are owned and operated corporately, all of which are located in Ontario. Revenue from corporate restaurants was $5.7 million for Q2 2026, down 2% from $5.8 million for Q2 2025. The decrease is mainly attributed to two of the A&W corporate restaurants being closed for modernization for several weeks during the quarter, partially offset by the opening of the second corporately owned Pret location in Q1 2026,” said the company.
It said total revenue of $130.2 million for YTD 2026 increased $0.3 million from YTD 2025’s total revenue of $129.9 million. The increase was due to increases in revenue streams that are primarily driven by System Sales, including advertising fund contributions, service fees and revenue generated from the distribution of food and supplies, partially offset by lower equipment and turnkey revenue.
System Sales for YTD 2026 were $872.6 million, up 2.7% from YTD 2025 System Sales of $849.2 million, due to an increase in the number of A&W restaurants and Same Store Sales Growth of 1.1%. Same Store Sales Growth for YTD 2026 reflected an increase in average cheque, partially offset by a decline in same store guest counts, as the benefit of the Q2 2026 smash-style burger promotion was offset by the impact of severe weather events in Eastern Canada in Q1 2026 and the non-recurrence of the 2025 GST/HST holiday, added A&W.
Revenue from corporate restaurants was $10.7 million for YTD 2026, down 3% from $11.0 million for YTD 2025, mainly attributable to the temporary closure of two A&W corporate restaurants for modernization in Q2 2026, the adverse impacts of severe weather in Q1 2026 and the prevailing economic environment in Ontario, partially offset by the opening of the second corporately owned Pret location in Q1 2026, it shared.
A&W said its outlook for 2026 is total A&W restaurants to be between 1,112 and 1,120 by the end of Fiscal 2026 (1,094 at the end of Fiscal 2025); System Sales Growth of 2.5% – 5.0% (2.8% in Fiscal 2025); and Same Store Sales Growth of 0.5% – 3.0% (1.2% in Fiscal 2025).
Businesses generate customer data at every stage of the buying journey, from the first marketing email to the final sales call. When that information spans multiple systems, teams usually spend as much time searching for answers as they do engaging with customers. Managing sales and marketing in a single customer relationship management (CRM) platform brings those activities together, giving both teams access to the same information and a better view of every opportunity.
1. Stops Customer Data From Falling Through the Cracks
The CRM software market is forecast to generate $103.51 billion in revenue in 2026. As businesses invest more heavily in CRM software, many are looking for ways to keep sales and marketing data connected.
The need is easy to understand. Customers usually interact with a business several times before making a purchase. They might download a buying guide, attend a webinar, open marketing emails or request a product demonstration. This leaves valuable information across each touch point.
Managing sales and marketing in one CRM platform brings those interactions into a single customer record. Marketing can see how prospects engage with campaigns. On the other hand, sales can enter every conversation with the same customer history and context. Plus, shared data helps reduce duplicate records, keeps customer information current, and gives both teams a consistent view of lead quality and pipeline activity.
2. Turns Marketing Leads Into Sales Opportunities Faster
Generating leads is only half the challenge. The real value comes from moving qualified prospects into meaningful sales conversations before interest fades. Separate systems usually slow down that process. Marketing may need to export contact lists, manually update records or notify sales when someone reaches a particular stage. Each additional step creates opportunities for delays or missed follow-ups.
Managing both functions in one CRM removes much of that friction. When a prospect takes an action that signals buying intent, such as requesting a quote or booking a consultation, sales can receive that information immediately, along with valuable context about prior engagement. Therefore, sales representatives can learn what captured the prospect’s attention and which products or services generated interest.
3. Delivers More Personalized Customer Experiences
Few things frustrate customers more than having to repeat themselves. A prospect who has already spoken with sales shouldn’t receive introductory marketing messages that ignore those conversations. Likewise, sales representatives benefit from knowing which campaigns, newsletters or promotions a customer has already seen.
A unified CRM helps maintain continuity across every interaction. Marketing and sales can see the same timeline of emails, calls, meetings, website activity and other customer touch points. This makes it easier to personalize every conversation. Plus, the effort can deliver measurable value. Deloitte research found that one in five customers interested in personalized products or services is willing to pay 20% more. Many are also willing to share personal data in exchange for a more tailored experience.
4. Saves Time With Automation and AI
Administrative tasks are essential, but they rarely create value on their own. Logging meetings, assigning leads, updating contract records and scheduling follow-ups can consume hours each week that could otherwise be spent engaging customers.
Modern CRM platforms reduce much of that workload through automation, allowing routine processes to happen in the background. Lead assignments, email sequences, reminders and workflow updates can all be triggered automatically based on customer actions or predefined rules.
Many platforms also incorporate AI to further simplify everyday work. AI-powered tools can automatically document conversations and organize important information, so teams don’t need to manually summarize meetings or capture notes during calls.
5. Provides Better Reporting and Forecasting
Reliable reporting starts with reliable data. When customer information is stored in a single CRM, reports draw from the same dataset. Sales and marketing teams can measure performance using consistent information. That gives managers more confidence in the numbers used for planning and decision-making.
The shared view also helps answer questions that separate systems usually cannot. Which marketing campaign generated the most qualified leads? Which channel contributed the most revenue? How long does it take for a lead from a webinar or email campaign to become a customer? Having sales and marketing data in one place makes those connections much easier to see.
These insights strengthen forecasting by enabling businesses to identify patterns across the entire customer journey rather than individual activities in isolation. Budgets can be directed toward higher-performing campaigns, sales targets can reflect current pipeline health, and teams can respond more quickly as customer behavior changes.
6. Reduces Software Complexity and Operational Costs
Business software has a way of growing over time. One application manages contacts, another sends email campaigns, one tracks deals, and several others support everyday tasks. Each platform requires training, maintenance and ongoing administration. Information also moves between systems through imports, exports and integrations, creating extra work and increasing the risk of inconsistent records.
Using several software platforms can also increase operating costs. Subscription fees, software maintenance and system management all add to day-to-day expenses. This is an important consideration as businesses continue to face rising costs. A 2026 survey found that marketing and advertising were the expenses that increased the most for nearly three in 10 small businesses.
Managing sales and marketing in a single CRM platform simplifies daily operations by bringing customer information and key workflows together. Teams spend less time switching between applications, updating duplicate records and searching for customer information, leaving more time to engage customers and support business growth.
7. Supports Long-Term Business Growth
As businesses grow, so do their customer databases, sales processes and marketing activities. Systems that work well for a small team may become increasingly difficult to manage as operations expand. A unified CRM provides a foundation that scales with the business. New employees can be onboarded more quickly because information, workflows and customer records already exist within one platform.
Standardized processes help maintain consistency as teams grow. Everyone follows the same workflows, accesses the same information and contributes to the same customer records, making it much more straightforward to support expansion without sacrificing efficiency or customer experience. Centralized reporting also gives managers a clearer view of performance across growing teams. This helps identify opportunities, monitor progress and make informed decisions as the business continues to develop.
How Nutshell Brings Sales and Marketing Together
Businesses looking for a single platform to manage sales and marketing can use Nutshell, an AI-powered sales CRM and marketing automation platform that keeps customer information connected from the first interaction through the final sale. The platform combines CRM, email marketing, contact management and sales tools. This allows teams to manage campaigns, leads and customer relationships within one place. Its feature set includes:
AI call and meeting notetakers, predictive lead scoring and AI-generated email drafts to reduce routine administrative work.
A 360-degree timeline, two-way Google and Microsoft email and calendar sync, plus AI-powered data enrichment.
Visual pipeline management, automated lead assignment, sales sequences and workflow automation.
Built-in email marketing, SMS campaigns, landing pages, web forms and visitor tracking, with marketing performance tied directly to sales outcomes.
Smart reporting, revenue forecasting and lead attribution that connect marketing activity with pipeline performance.
Nutshell also offers free live support and complimentary data migration during trials to help teams get started in days, not months. The platform currently supports more than 5,000 companies across 50 countries, with customers reporting 14.9% faster close times, a 13.4% increase in leads won and 26.4% growth in new sales revenue.
The Bottom Line
Managing sales and marketing in one CRM platform gives every customer interaction greater context. Shared information keeps conversations connected, reporting remains consistent, and teams can coordinate their efforts throughout the buying journey.
“Although confidence had started to improve, renewed trade uncertainty can quickly undermine progress. With President Trump’s latest executive orders to hit Canada with 50% tariffs in a month, business sentiment will likely drop in August. Between seesawing fuel prices and renewed trade tensions, it’s a major challenge for businesses to plan ahead,” said Simon Gaudreault, CFIB Chief Economist and Vice-President of Research. “The last thing we want is for small business confidence to take a hit like it did in March 2025 when it cratered to an all-time low after the first round of tariffs was announced.”
Measured on a scale between 0 and 100, an index above 50 means owners expecting their business’s performance to be stronger over the next three or 12 months outnumber those expecting weaker performance. An index level near 65 normally indicates that the economy is growing at its potential.
Simon GaudreaultAndreea Bourgeois
While overall optimism improved, confidence among manufacturing businesses continued to lag behind at 53.7 index points. Manufacturing sector’s confidence hasn’t recovered since 2023 and has been hit harder by tariffs than by either the 2008-09 recession or the pandemic. Where 45% of small businesses nationally reported shipping and receiving costs as a constraint in July, that figure hit 63% among manufacturers, more than double the 29% recorded in February 2026. Input product costs were squeezing 77% of manufacturers, almost twice the usual share for this sector, explained Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region.
“This industry is in a very challenging spot. Optimism among manufacturing firms was showing timid signs of improvement, but still below its historical average and most likely would lose momentum going forward,” said Andreea Bourgeois, CFIB Director of Economics. “As some manufacturers are considering U.S. production, we need a more competitive fiscal environment here at home and policies that would encourage businesses to stay and invest in Canada.”
Fuel costs remained the top cost constraint affecting 60% of small firms across Canada, while shipping and receiving costs stayed elevated for 45% of businesses. Nearly four in ten (38%) firms reported struggling with capital equipment and technology costs, compared to a historical average of 23%, said the CFIB.
Provincial outlooks were mixed, while most sectors saw small changes in optimism. The future price increase indicator was easing, with small firms planning to increase prices by an average of 2.7% over the next few months, it said.
The share of businesses citing limited physical space as a factor restricting sales or production growth was trending down since November 2025, reaching 14% in July, it noted.
“It’s another indicator that small businesses were being careful with investment and expansion plans, as they were not sure about future demand,” Gaudreault added.
Retail sales increased 1.0% to $73.7 billion in May. Sales were up in all nine subsectors, led by increases at gasoline stations and fuel vendors. Core retail sales, which exclude gasoline stations and fuel vendors and motor vehicle and parts dealers, were up 0.9% in May, reported Statistics Canada on Thursday.
In volume terms, retail sales increased 0.3% in May, added the federal agency.
Statistics Canada also provided an advance estimate of retail sales, which suggests that sales increased 0.4% in June.
“The largest increase in retail sales in May was observed at gasoline stations and fuel vendors (+3.1%). In volume terms, sales at gasoline stations and fuel vendors fell 2.7% in May,” it explained.
“Sales at motor vehicle and parts dealers were up 0.7% in May, rising for a second consecutive month. All four store types within this subsector posted increases in May, with higher sales at new car dealers (+0.5%) leading the gain.”
Following a decrease of 0.7% in April, core retail sales rose 0.9% in May. The increase was led by higher sales at general merchandise retailers (+1.0%), which posted its first increase in three months, said Statistics Canada.
“In May, higher sales were recorded at sporting goods, hobby, musical instrument, book, and miscellaneous retailers (+1.8%), also posting its first gain in three months,” it said.
“Sales at food and beverage retailers were up 0.5% in May. The increase in this subsector was led by higher sales at supermarkets and other grocery retailers (except convenience retailers), which rose 1.0% in May.”
On a seasonally adjusted basis, retail e-commerce sales decreased 1.5% to $5.0 billion in May, accounting for 6.8% of total retail trade, compared with 7.0% in April, it said.
Maria Solovieva
“May delivered a solid month for retail sales, with core spending and real activity rebounding after two consecutive monthly declines. While Statistics Canada’s advance estimate points to slower nominal sales growth in June, last month’s fall in consumer prices suggests this mostly reflects a price effect and not weaker demand. Our internal TD Spend data reinforces that view, with services spending continuing to strengthen in June, supported by FIFA-related activity and recent federal government income support measures. Taken together, this points to a stronger outlook for real personal consumption growth in Q2 than currently embedded in our forecast,” said Maria Solovieva, Economist, TD.
Andrew Grantham
“The durability of this experience remains an open question. Oil prices have resumed their climb this morning and, while they remain below the highs reached in April, they still represent an incremental tax on household purchasing power, particularly for lower-income consumers.”
Andrew Grantham, Senior Economist, CIBC Capital Markets, said Canadian retail sales volumes appear to have held up better than expected in the second quarter against the backdrop of high gasoline prices and no population growth.
“A modest rebound in May and potentially a stronger gain in June (as hinted at by the advance estimate), should offset earlier declines and leave goods consumption broadly flat relative to the first quarter. Looking ahead, enhanced household benefits were expected to support increased spending in the second half of the year, although the rebound seen recently in gasoline prices will at least partly offset that and start to restrict any pick up in discretionary spending,” he said.
“Overall retail sales volumes increased by 0.3% on the month, led by the rebound seen in core retail sales. Potentially linked to a modest upturn in housing market activity, retail sales volumes in furniture and building materials rose to their highest levels in six and three months respectively. Volumes of sales at gasoline stations fell on the month to partly offset increase in prices.
“The advance estimate for June pointed to a 0.4% increase in headline sales, which will likely look stronger in volume terms given the decline in gasoline prices seen that month. For Q2 as a whole, sales volumes appear to be little changed relative to the first quarter, which against the backdrop of the sharp rise in gasoline prices and no population growth is actually quite a positive result.”
The Montreal-based company said Kon, who most recently served as President, Chief Operating Officer and a member of the board of directors at Toronto-based artificial intelligence company Cohere, joins the board after holding senior leadership roles spanning technology, finance and operations.
The appointment comes as Groupe Dynamite continues to expand its retail and digital operations internationally while focusing on technology, data and artificial intelligence as part of its business strategy.
“Martin brings a unique combination of technology leadership, operational expertise and strategic insight that will be highly valuable to Groupe Dynamite as we scale our business. His experience at Cohere, YouTube and leading global consulting firms has given him a deep understanding of how technology, data, and AI can accelerate innovation, strengthen our operating model and support disciplined growth. As we continue to execute our long-term growth strategy, Martin’s perspective will further strengthen our Board, help position Groupe Dynamite for its next phase of growth and support the creation of lasting value for our shareholders,” said Lutfy.
Martin KonAndrew Lutfy
Kon said he sees opportunities for the retailer as it continues its international expansion and invests in technology.
“Groupe Dynamite has built something rare – two brands that customers genuinely love, backed by disciplined, profitable growth. As the father of two daughters who are devoted GARAGE and DYNAMITE shoppers, I’ve seen that loyalty firsthand. The opportunities ahead are compelling: continued expansion internationally across the U.S., the U.K. and beyond, deepening community through social media, and harnessing data and AI to strengthen an already-strong operating model. I’m honoured to join the board and to help Andrew and the team pursue these growth vectors in its next chapter,” added Kon.
The company said Kon currently serves as a board director, researcher and strategic advisor to a select group of operational and capital market organizations, with a focus on enterprise reinvention through artificial intelligence. His current roles include serving as an industry advisor to KKR, a member of the Client Advisory Council at J.P. Morgan Advisors and a member of the McGill Desautels International Advisory and Advancement Board.
Groupe Dynamite said Kon is also scheduled to begin doctoral research at the University of Cambridge in October 2026, where he will study what the company described as “The Reinvention Paradox in the Age of AI.”
Before joining Cohere, Kon served as Chief Financial Officer, internally titled Business Finance Officer, at YouTube within Google/Alphabet. Groupe Dynamite said he oversaw global strategy, finance, business operations and data analytics during a period in which YouTube grew to more than US$40 billion in annual revenue while improving its operating margins.
The company said Kon helped lead Cohere’s growth from a research-focused organization into what it described as a transatlantic sovereign artificial intelligence company that had a reported valuation of US$20 billion as of April 2026.
Groupe Dynamite operates women’s fashion retail stores and e-commerce businesses under its GARAGE and DYNAMITE banners. The company said it operates in Canada and the United States and has recently expanded into the United Kingdom as part of its international growth strategy. It employs approximately 7,200 people, who participate in the company’s Shared Success Program through ownership exposure.
RIMAP Hospitality Services Inc., one of Canada’s leading hotel management companies, has announced that Moxy Ottawa Downtown is now officially open, “welcoming guests to a bold new hospitality experience in the heart of the nation’s capital.”
Located at 126 York Street in the heart of Ottawa’s iconic ByWard Market district, Moxy Ottawa Downtown introduces a bold new hospitality experience designed for the next generation of travellers – playful, social, energetic, and undeniably fun. Smack dab in the middle of the action, the hotel places guests steps from Rideau Street, Gatineau, and Ottawa’s top business, entertainment, shopping, and cultural destinations,” said the company.
Following the successful opening of AC Hotel by Marriott Ottawa Downtown in 2025, Moxy Ottawa Downtown marks the next chapter in RIMAP Hospitality’s growing presence in the capital region, with the highly anticipated Renaissance Hotel Ottawa Downtown set to follow in 2027, said the company.
“At Moxy, hospitality is about energy, personality, and creating unforgettable moments,” said Marc Varadi, President of RIMAP Hospitality Inc. “We are incredibly excited to introduce this dynamic lifestyle brand to Ottawa and bring a completely new hotel experience to the city. Moxy Ottawa Downtown is designed to be more than a place to stay–it’s a social hub, a nightlife destination, and a gathering place for travellers and locals alike.”
At the centre of the experience is Moxy Bar, the heartbeat of the hotel and a high-energy social destination expected to quickly become one of Ottawa’s go-to gathering places. Open daily for breakfast and dinner, Moxy Bar offers handcrafted cocktails, elevated casual dining, and a lively atmosphere that transitions seamlessly from day to night. Guests and locals can also look forward to a rotating calendar of weekly entertainment and social programming, including games nights, live DJ performances, themed events, and interactive experiences designed to bring people together. With curated programming, live entertainment, and an energetic vibe, Moxy Bar delivers an atmosphere designed to keep the excitement going well into the evening, explained the company.
“Moxy Ottawa Downtown captures the spirit of the city’s evolving social and cultural scene,” said Stéphane Pelletier, Regional General Manager, RIMAP Hospitality Inc. “Every detail has been thoughtfully designed to encourage interaction, excitement, and discovery. From the guest experience to the entertainment programming, this hotel is built to surprise people in the best possible way.”
The hotel also offers a variety of amenities designed to balance social energy with relaxation, including a fitness centre, and flexible gathering spaces for both work and play.
Mox: Brand Ambassador, Moxy Ottawa Downtown
Guestrooms at Moxy Ottawa Downtown have been intentionally designed to maximize every inch of space, blending smart functionality with playful details and modern comfort. Rooms feature walk-in showers, motion-activated LED guide lights, clever wall-mounted storage solutions, and flexible layouts that encourage guests to use the space however they like. Stylish, efficient, and full of personality, the guestrooms embody the Moxy brand’s fresh take on modern travel, it said.
“Marriott International is thrilled to continue its partnership with RIMAP Hospitality Services Inc. with the opening of Moxy Ottawa Downtown,” said Aaron Laurie, AVP of Development, Eastern Canada, at Marriott International. “Moxy Hotels has redefined the lifestyle hospitality category around the world through bold design, vibrant social experiences, and an energetic spirit that resonates strongly with today’s travellers. We are excited to see the brand make its Ottawa debut in the heart of the ByWard Market.”
RIMAP Hospitality Services Inc., Montreal-based hotel management company, was founded in 2007. In just over a decade, RIMAP has become one of Montreal’s largest hotel operators, currently managing internationally recognized brands under the Marriott, Hilton, and IHG Hotels & Resorts banners.
CF Markville is bringing the excitement of the track directly to local residents.
On Saturday, August 1 and Sunday, August 2, CF Markville’s Grand Court will transform into an interactive pre-race pit stop. Designed specifically for sports fans, local families, and thrill-seekers alike, the Racing Simulator Experience offers an up-close look at the high-speed world of professional racing, said the shopping centre.
“We are thrilled to welcome families and racing fans to CF Markville to kick off a historic milestone for our city,” said Kelly Vieira, General Manager, CF Markville. “As Markham hosts its largest-ever sporting event, we wanted to bring that trackside energy directly to our community. Whether guests are testing their skills on professional simulators or meeting local star Demi Chalkias, CF Markville will be the ultimate hub for pre-race excitement.”
Visitors to CF Markville can look forward to a lineup of free, interactive experiences that offer something unforgettable for guests of all ages, said the shopping centre:
Authentic Race Car Display: Visitors can view an authentic radical race car parked in the Grand Court. The vehicle will remain on display throughout the weekend, offering guests a unique, up-close look at professional racing engineering and a memorable photo opportunity.
Professional Racing Simulators: In partnership with Toronto Racing Simulators, the event will feature four state-of-the-art, professional-grade simulators. Guests are invited to test their driving skills on a virtual recreation of the actual Markham Indy race circuit, competing to match or beat professional lap times.
The 1:20 Speed Challenge: To elevate the competitive spirit, CF Markville is hosting a time-trial challenge. Any participant who successfully clocks an average simulator lap time of 1:20 or faster will instantly win a $15 CF SHOP! card (while supplies last).
Local Athlete Appearance: Markham native Demi Chalkias – professional racer, Radical Cup Canada competitor, and the groundbreaking first mother to compete in the series – will make special guest appearances. Representing Team Demi, Chalkias will be onsite for exclusive meet-and-greets, autographs, and media/photo opportunities on both days from 1:00 PM to 3:00 PM.
Canadian pet owners appear reluctant to reduce spending on their animals, even as higher living costs continue to shape household decisions.
A new national study found that 80 per cent of surveyed cat and dog owners expect to maintain or increase their pet spending over the next 12 months. Thirty-two per cent anticipate spending more, while 48 per cent expect their budgets to remain stable. Only 12 per cent expect to spend less.
Pet-related purchases appear to have become a protected expense for many households. When respondents were asked what they would cut first if finances became tighter, 51 per cent selected dining out or takeout. Clothing and fashion followed at 38 per cent, personal grooming and self-care at 30 per cent, and coffee or tea-shop purchases at 22 per cent. Travel, streaming services and fitness spending also ranked ahead of pet expenses as potential areas for reduction.
The findings come from the 2026 Canadian Pet Shopping Report, conducted by consumer data platform Caddle in collaboration with Pet Valu. Approximately 10,000 Canadian adults participated in the May 2026 research, with the main analysis based on 2,184 cat and dog owners responsible for household purchasing. The results were weighted to represent the Canadian population.
The report presents a resilient consumer category, though the spending within it remains highly contested. Canadians may be protecting their pet budgets, but they are comparing value, shopping across several channels and expecting retailers to provide greater convenience.
Pet Budgets Are Protected, but Value Still Leads
Food, treats and litter represent a meaningful monthly expense for many owners.
The most common spending range was between $50 and $99 per month, reported by 32 per cent of respondents. Another 29 per cent spend between $100 and $199, while eight per cent spend at least $200. In total, 36 per cent spend $100 or more each month on those three categories alone.
Those figures exclude veterinary care, grooming, insurance, toys and other services and merchandise.
Price and value ranked among the three most important food-purchasing considerations for 51 per cent of respondents. Veterinary recommendations followed at 40 per cent, while 36 per cent identified functional health benefits such as digestive or joint support.
Brand reputation was selected by 28 per cent, natural or organic ingredients by 25 per cent and Canadian or locally sourced products by 20 per cent.
The findings show owners balancing affordability with nutritional needs, professional guidance and product quality. Some are managing that balance by combining products from different price tiers.
Among respondents who mix pet-food types or brands, 31 per cent said they do so to meet different needs. Another 29 per cent combine premium and budget products to save money, while others cited picky eating, nutritional variety or veterinary recommendations.
Pet Valu’s recent performance provides useful context. The company reported flat same-store sales in the first quarter of 2026, with a 0.6 per cent increase in average spending per transaction offset by a 0.6 per cent decline in transactions. Management said the quarter was shaped by heightened value-seeking behaviour among consumers.
The results show how owners can preserve their overall pet budgets while becoming more selective about individual purchases, promotions and retail channels.
Valentine’s Day at Pet Valu (Image: Dustin Fuhs)
Specialty Retail Leads an Omnichannel Market
Specialty retailers remain the most common primary destination for pet food and treats.
Thirty-nine per cent of respondents said they shop most often at a pet specialty store. Big-box retailers followed at 29 per cent, grocery stores at 18 per cent, online retailers at nine per cent and veterinary clinics at three per cent.
The broader channel data shows that many consumers do not confine their spending to one format. Forty-one per cent sometimes use specialty stores beyond their primary shopping destination, while 38 per cent sometimes use big-box retailers. Grocery stores serve as a secondary channel for 30 per cent, and 28 per cent sometimes purchase online.
Nearly one-third of respondents, at 31 per cent, tried a new channel for food or treats during the previous year.
That movement gives retailers opportunities to win incremental purchases, but it also means a customer’s preferred store may capture only part of the household’s total pet spending.
Among respondents whose main channel is a specialty store, 43 per cent said they shop most often at the combined group of Pet Valu, Mondou or Global Pet Foods. PetSmart accounted for 31 per cent, while 26 per cent selected another specialty retailer. The 43 per cent figure covers three separate retail groups and should not be interpreted as Pet Valu’s individual market share.
Pet Valu ended its first quarter with 870 stores after opening eight locations during the period. System-wide sales increased 2.5 per cent to $375.2 million, while revenue rose 3.2 per cent to $287.9 million.
The company generated $1.53 billion in system-wide sales during fiscal 2025, an increase of 5.6 per cent. Same-store sales rose 1.6 per cent, and the network ended the year with 863 stores. Pet Valu entered 2026 planning approximately 40 additional openings.
Online Ordering Becomes Part of the Routine
Online purchasing extends well beyond the nine per cent who identify digital retailers as their primary channel.
For pet food, 17 per cent of respondents said they buy online always or almost always, while 27 per cent do so often, defined in the report as monthly or more. Another 33 per cent purchase online sometimes.
For treats, 13 per cent buy online always or almost always, 24 per cent do so often and 34 per cent shop online sometimes.
The report summarizes the findings by noting that 44 per cent buy pet food online at least often, while 37 per cent do the same for treats.
Digital ordering is therefore becoming part of a wider shopping routine. A customer might visit a specialty store for product discovery or advice, order routine items online and use a grocery or mass merchant for fill-in purchases.
That pattern makes home delivery, click-and-collect and recurring orders increasingly important for retailers operating physical store networks.
Auto-Ship Becomes a Customer-Retention Tool
The report’s findings on auto-ship provide one of its clearest signals for the retail industry.
Forty-one per cent of respondents currently use a subscription or auto-ship service, including 19 per cent who use one regularly and 22 per cent who do so occasionally. Another 18 per cent are interested or have considered subscribing.
For 55 per cent of owners, having auto-ship available is important when choosing where to shop. Twenty-three per cent described the service as very important and a key reason they use their preferred retailer, while 32 per cent called it somewhat important.
The consequences of removing the service could be significant. If their preferred retailer did not offer auto-ship, 30 per cent said they would switch to another retailer that does. A further 15 per cent would move to an online subscription provider. Combined, 45 per cent could take their business elsewhere.
Forty-eight per cent would continue shopping in-store without a subscription, while seven per cent were uncertain.
Auto-ship can help retailers secure recurring purchases and reduce the chance that routine replenishment orders migrate to a competitor. It also gives store-based operators a way to participate in subscription shopping while maintaining a broader relationship with the customer.
Competitive pricing may win a transaction. Reliable recurring delivery can help determine who keeps the customer.
Availability and Ingredients Can Prompt Brand Switching
Pet owners also appear willing to reconsider brands when products become difficult to find or a perceived improvement enters the market.
Twenty per cent said they never or rarely switch food brands or types, while 39 per cent change only when needed, such as when a health issue arises. Twenty-nine per cent switch every few months, and 12 per cent do so monthly or more.
When asked what would be most likely to persuade them to switch, 53 per cent selected better availability. Better ingredients ranked second at 32 per cent, while 15 per cent selected a better price. Overall, 68 per cent said they would be likely to switch if a better option became available or its ingredients improved.
The results do not diminish the role of price, which remains the leading consideration when consumers choose food. They show that reliability and product composition can become decisive once a customer has established a purchasing routine.
For retailers, repeated out-of-stocks may place both the immediate sale and the wider customer relationship at risk. A shopper unable to find a preferred formula may discover a replacement brand, another store or a recurring online option.
Pet Valu store, photo: Stifel
Health, Values and Professional Advice Shape Decisions
Feeding habits are varied, giving retailers room to serve several product formats and price points within the same household.
Forty-three per cent of respondents combine dry and wet food. Thirty-eight per cent use dry kibble only, while 10 per cent use wet or canned food and nine per cent primarily use raw or freeze-dried products.
Sixty-three per cent mix food types or brands at least sometimes.
Ethical and environmental considerations also form part of the purchase decision. Cruelty-free products or the absence of animal testing were selected by 43 per cent, followed by organic or natural ingredients at 39 per cent and local or Canadian sourcing at 31 per cent. Environmental impact was selected by 28 per cent, while 20 per cent identified recyclable or environmentally friendly packaging.
Veterinarians remain the most trusted source of pet-related advice, selected by 62 per cent of respondents. Online reviews and ratings followed at 11 per cent, friends and family at 10 per cent, other sources at nine per cent and pet-store staff at seven per cent.
The results give health claims, ingredient transparency and professional credibility considerable importance for brands and retailers, particularly in premium and functional food categories.
AI Enters the Pet-Product Discovery Process
Artificial intelligence is beginning to influence how some owners research their pets’ needs.
Thirty-two per cent of respondents have used an AI tool for a pet-related question, although only six per cent said they do so often. Twelve per cent use AI sometimes and 14 per cent rarely, while 68 per cent have never used it for this purpose.
Among those who have used AI, 48 per cent asked about diet or nutrition, 42 per cent sought information about symptoms or health concerns, 36 per cent requested product suggestions and 23 per cent asked about behaviour or training.
Most users continue to check the information elsewhere. Sixty-nine per cent said they always or usually verify AI-generated advice with a veterinarian or another source.
For retailers and product companies, the product-suggestion figure may be the most relevant. AI tools could become another point of discovery alongside search engines, retailer websites, online reviews, veterinarians and store associates.
Category Loyalty Is Stronger Than Retailer Loyalty
The spending resilience reflected in the report is supported by the place pets occupy in Canadian homes.
The study estimates that 52 per cent of Canadians own a cat or dog. Eighty-seven per cent of owners agree that their pet is a full member of the family, including 58 per cent who strongly agree.
Twenty-one per cent plan to add a pet during the next year. Among current owners asked what they would do following the loss of a pet, 75 per cent said they would eventually get another one.
Those relationships help explain why pet spending can remain resilient while other discretionary categories face pressure.
Retailers should not assume that loyalty to the category translates into loyalty to one banner, channel or brand. The report describes customers who are attentive to price, prepared to mix products, comfortable shopping across several formats and willing to change providers when availability or convenience falls short.
Canadian consumers may be reluctant to reduce what they spend on their pets. They appear far more willing to reconsider where they spend it.
EMERGE Commerce Ltd., an acquirer and operator of profitable e-commerce brands and technologies, has reported preliminary unaudited results for the second quarter ended June 30, 2026.
Revenue expected to be between $9.0M and $9.1M vs. $8.5M
Gross margin expected to be approximately 39% vs. 36%
Adj. EBITDAexpected to be between $1M and $1.1M vs. $958K
Cash Position grew to $4.8M (June 30, 2026) vs. $3.5M (June 30, 2025) and $4.1M (March 31, 2026)
EMERGE said it expects to file its full Q2 results in late August.
EMERGE Commerce describes itself as a disciplined acquirer and operator of profitable e-commerce brands and technologies across Direct-to Consumer and Business-to-Business segments. Its D2C portfolio spans its Grocery and Golf verticals. truLOCAL is its flagship Canadian meat and seafood subscription service. Its Golf vertical includes UnderPar(discounted golf experiences), JustGolfStuff and Tee 2 Green (discounted apparel and equipment). EMERGE B2B houses Viral Loops, its referral marketing platform.
Tim Hortons has introduced a new lineup of handcrafted hot and iced matcha beverages at participating restaurants across Canada, expanding its beverage menu with drinks made using what the company says is high-quality, 100 per cent pure and authentic matcha tea.
The launch adds five matcha-based drinks to the chain’s menu and marks the company’s latest product introduction aimed at broadening beverage options beyond its traditional coffee and tea offerings.
According to Tim Hortons, the matcha used in the new beverages is produced from shade-grown green tea leaves that are picked, dried and double-ground into a fine powder. The company said the process is intended to produce a fresh matcha flavour and vibrant green colour.
The new lineup includes a Vanilla Iced Matcha Latte with Cold Foam, Original Iced Matcha Latte, Unsweetened Iced Matcha Latte, Hot Vanilla Matcha Latte and Hot Matcha Latte.
“We’re proud to be launching a high quality matcha experience for Tims guests across Canada. We sourced a 100 per cent pure matcha green tea that is double-ground at a low-temperature to deliver an authentic and delicious matcha for both our iced and hot beverages,” said Matthew Feaver, Head of Innovation for Tim Hortons.
Feaver said the company developed the lineup to appeal to both existing matcha drinkers and customers interested in trying the beverage.
“Our matcha lineup is designed to delight both longtime matcha fans and guests who are looking to explore the world of matcha as a delicious alternative to coffee or black tea. Guests can enjoy their matcha at Tims in a variety of different ways including sweetened or unsweetened, with vanilla flavour, and with cold foam.”
Matthew Feaver
The beverages are now available at participating Tim Hortons restaurants across Canada.
Tim Hortons said the matcha beverages are made using tea leaves that are double-ground after harvesting and drying. The company said the resulting powder is used in both its hot and iced drinks.
The product launch expands the company’s specialty beverage offerings, which already include espresso-based drinks, teas and iced beverages. The new matcha lineup provides customers with additional options available in both hot and cold formats, including sweetened and unsweetened variations.
