Total sales in the food services and drinking places subsector decreased 0.3% to $8.6 billion in December, according to a report released Wednesday by Statistics Canada.
Non-seasonally adjusted prices for food purchased from restaurants were up 8.5% in December when compared with December 2024. Unadjusted prices for alcoholic beverages served in licensed establishments increased 6.5% over the same period. These were particularly large increases in the year-over-year Consumer Price Index due to the tax break starting December 14, 2024, that lowered the price of food and some alcoholic beverages paid by consumers at restaurants, explained the federal agency.
In December 2025, the largest decrease in dollar terms came from lower sales at full-service restaurants (-0.4%), followed by limited-service eating places (-0.3%). Sales were also down at drinking places (-0.7%). Sales increased at special food services (+0.5%), said Statistics Canada.
In December, eight provinces saw decreased sales, with Quebec (-1.7%) posting the largest decline in dollar terms. Sales also fell across the east coast and the prairies. Ontario (+0.7%) and British Columbia (+0.3%) posted the only increases, it added.
“Annual sales of food services and drinking places totalled $101.4 billion in 2025, up 5.6% from 2024. Sales increased at limited-service eating places (+5.9%), full-service restaurants (+5.8%) and special food services (+5.7%) from 2024 to 2025. In contrast, sales at drinking places (-2.3%) were down in the same period. Sales were up in all provinces, and Ontario (+6.0%) recorded the largest dollar growth. Quebec (+5.1%), British Columbia (+4.8%) and Alberta (+5.9%) also posted significant dollar increases,” said the report.
“Limited-service eating places, also known as fast food or quick-service restaurants, recorded an increase of $2.6 billion from 2024 to total $47.3 billion in 2025. Each province experienced growth in the fast food industry, with the highest increase in dollar terms being in Ontario (+6.3%), followed by Quebec (+6.3%), Alberta (+5.1%) and British Columbia (+4.4%). Sales at limited-service eating places accounted for 46.6% of total sales in the food services and drinking places subsector.
“Sales in full-service restaurants increased by $2.4 billion from one year earlier to $43.6 billion in 2025. Sales were up in each province, driven by increases in Ontario (+5.3%), British Columbia (+6.2%), Quebec (+5.0%) and Alberta (+7.6%). Full-service restaurants represented 43.0% of total sales in the subsector.
“Prices continued to rise in this subsector. The prices for food purchased from restaurants increased 2.6% in 2025 compared with 2024, while the prices for alcoholic beverages served in licensed establishments increased 2.7% over the same period.”
More from Retail Insider:
