Total sales in the food services and drinking places subsector rose 0.1 per cent to $8.5 billion in July, marking the fifth consecutive monthly increase, according to new data from Statistics Canada.
The agency reported that full-service restaurants posted the largest sales growth in dollar terms, increasing by 0.4 per cent. Special food services, which include catering and mobile food services, also saw a rise of 1.4 per cent.
Meanwhile, limited-service eating places recorded the largest decline in dollar terms, falling 0.3 per cent. Sales at drinking places dropped 1.9 per cent.
Prices also continued to rise in July. Statistics Canada said non-seasonally adjusted prices for food purchased from restaurants increased 3.2 per cent compared with July 2024. Prices for alcoholic beverages served in licensed establishments rose 3.4 per cent over the same period.
Sales were up in five provinces, with Ontario leading the gains at 0.3 per cent, followed by Manitoba with a 1.0 per cent increase. British Columbia saw the largest decline in dollar terms, with sales falling 0.3 per cent.
Recently, it was reported that three in four Canadians (75%) are eating out less often due to the rising cost of living, according to Restaurants Canada’s 2025 Foodservice Facts report. That share rises to 81% for those aged 18 to 34, it said.
As a result of this pullback in dining out, the 2025 outlook for foodservice businesses is mixed. An increase in domestic tourism is driving more sales, but Canadians are spending less per capita and opting to eat at home more than they were pre-pandemic, said the national organization.
Per capita, Canadians are spending $1,035 at full-service restaurants and $1,135 at quick-service restaurants. In 2019, they were spending $1,165 and $1,150 respectively.
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