Total sales in the food services and drinking places subsector increased 0.3% in August to $8.9 billion, the eighth consecutive monthly increase, according to a report released Thursday by Statistics Canada.
Non-seasonally adjusted prices for food purchased from restaurants were up 3.1% in August compared with August 2025. Unadjusted prices for alcoholic beverages served in licensed establishments increased 3.1% over the same period, said the federal agency.
“In August, the largest increase in sales in dollar terms came from full-service restaurants (+0.3%). Sales at limited-service eating places (+0.2%) and special food services (+0.4%) also increased. Meanwhile, sales at drinking places declined (-0.6%),” said Statistics Canada.
Sales increased in four provinces in August, namely in Ontario (+0.4%), British Columbia (+0.6%), Alberta (+0.3%) and Quebec (+0.2%). The largest declines came from Nova Scotia (-0.8%) and Saskatchewan (-0.7%), it noted.
Sales growth may be stronger than expected but Canada’s restaurant industry continues to face significant financial pressures as 67% of restaurants report lower profitability compared to a year ago and 44% express pessimism about 2027, according to Restaurants Canada in its latest Quarterly report.
Commercial foodservice sales are projected to grow by 5.1% in 2026.
While 44% of restaurant operators say they are pessimistic about 2027, there are 30% who are optimistic. Also, 38% expect profitability to decline next year, while just 21% anticipate an improvement. Employment expectations are also restrained, with 29% of operators expecting to employ fewer workers and only 9% anticipating an increase, said the report.
“Restaurants are being squeezed between rising operating costs and consumers who simply can’t afford higher prices,” said Kelly Higginson, President and CEO of Restaurants Canada. “When restaurants can no longer make the economics work, Canada loses far more than places to eat – Canadians lose jobs, farmers and food producers lose customers, and communities across the country lose essential economic activity that keeps them vibrant.
More from Retail Insider:
