Total sales in the food services and drinking places subsector increased 0.8% in July to $8.9 billion, the seventh consecutive monthly increase, according to a report by Statistics Canada.
Non-seasonally adjusted prices for food purchased from restaurants were up 2.9% in July compared with July 2025. Unadjusted prices for alcoholic beverages served in licensed establishments increased 3.5% over the same period, said the federal agency.
In July, the largest increase in sales in dollar terms came from full-service restaurants (+0.8%), the industry’s seventh consecutive month-over-month increase. Special food services (+3.8%) had the largest percentage increase, following a decline of 1.0% in the previous month. Sales at limited-service eating places (+0.4%) and drinking places (+0.9%) also increased.
Sales increased in seven provinces in July, with the largest increase in dollar terms coming from Ontario (+0.8%), followed by Quebec (+1.4%) and Alberta (+1.8%). In dollar terms, the largest decrease came from British Columbia (-0.4%).
But a recent report noted that Canada’s restaurant industry continues to feel the pain as consumers, strapped financially these days, are eating out less.
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.
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