Canadians are eating less often at restaurants

A new report finds that 3 in 4 Canadians are eating out less due to an affordability crisis, hurting restaurants' razor-thin margins.

The 2025 Foodservice Facts Report has found that many Canadians are opting to stay in rather than dining out.

The report found that three in four Canadians have been eating out less and that restaurant dining has declined since the COVID-19 pandemic.

Janick Cormier from Restaurants Canada said the survey is disappointing.

“We finally thought we were out of it and we saw the light at the end of the tunnel,” Cormier said.

“Unfortunately, Canadians got hit with an affordability crisis, and restaurants were not immune to that, either.”

The report also saw a decrease in alcohol consumption, driven by health concerns, lifestyle choices and saving money. In all, 41 per cent of Canadians are drinking less.

“We deal with razor-thin profit margins and so alcohol products are one of the highest profit margin products that we sell,” Cormier said.

Felt the slowdown

“So, if people are reducing their consumption, it’s translating into we need to find a way to get that money elsewhere.”

In Greater Sudbury, some restaurants said they have felt the slowdown, but remain confident that their quality and service will keep patrons coming back.

“It’s easy, especially being a new restaurant, to overreact when there’s a slow day,” said Troy Kirkwood, owner of Cortina 64, a new adaptation of Cortina Pizza.

“Since … the beginning of September, we’ve noticed there have been a few days that have been very quiet and there (are) trends. It comes in waves, right?”

Bella Vita Cucina owner Filippo Rocca said one of the biggest challenges for restaurants is rising costs.

“My customers, usually they don’t have a problem coming out and spending money on good food,” Rocca said.

“The biggest problem is the cost of the ingredients, the cost of labour and, of course, when you hire employees, you want to make sure that they’re doing fine.”

He had to raise prices in 2023 to recover from the pandemic, but he doesn’t want to increase them again. But the additional expenses are challenging.

Rising costs are a major problem

“And this year, it just kept going, so we’re hurting a little bit for that,” Rocca said.

Cormier said the fact that the pandemic was followed by price increases created major challenges for the industry.

“The reality is we’ve been hit with the pandemic pretty bad,” she said.

“Now we’re hit with an affordability crisis. And add to that a labour shortage that is persistent.”

“It’s nerve-racking,” Kirkwood agreed.

“But again, it’s best to stay … cautiously optimistic for the future.”

Cormier recommends that restaurants feeling the impacts of market trends should focus on adding less expensive appetizers and mocktails.

“Canadians, when they do go out, they want to snack more instead of having a full meal,” said Cormier.