Canadians dining out less due to affordability crisis, says survey

The cost of living crisis is affecting how people dine out across the country. (Callum Smith/CTV News Atlantic)

Most Canadians are eating out less due to the high cost of living, with three out of four people opting to dine at home rather than splash the cash on a meal at a restaurant, according to a new report.

A Restaurants Canada report published Monday found 75 per cent of Canadians are cutting back on dining out. The cost of living is particularly biting for the younger generation, with the number even higher — at 81 per cent — for those aged between 18 and 34.

“While conditions have improved somewhat over the past year, this is still a very challenging market, as Canadians continue to face an affordability crisis and rising operational costs are squeezing operators’ margins,” said Kelly Higginson, president and CEO of Restaurants Canada, in the report.

In 2019, the average consumer was spending slightly more at full-service restaurants than they were quick-service restaurants, $1,165 and $1,150, respectively. This year, there’s been a shift, with Canadians spending more at quick-service food joints: $1,135 per capita, compared to $1,035 at full-service ones.

According to the report, 65 per cent of Canadians are replacing a traditional meal with a snack at least once a month, with Millennials and Gen Z-ers being more likely to forgo a meal for a brief bite at least once a week.

Dining with intention

Chef Nico Schuermans of Vancouver’s Chambar restaurant says the desire to dine out remains, but restaurant-goers are more considerate of ensuring the evening is worth the investment of both their time and money.

“People are more intentional when they dine out now,” he says.

“It used to be a bit more impulsive — ‘let’s grab dinner’ — but today, guests come with higher expectations and a stronger desire for meaningful experiences.”

As the world recuperates post-pandemic, workers have been gradually returning to the office, bringing on a 7.6 per cent increase of lunch hour traffic at quick-service restaurants. The numbers surpass event pre-pandemic levels, says the report, highlighting affordability concerns in addition to the rise in return-to-office mandates.

Opting for a smaller, typically cheaper, meal earlier in the day is becoming the norm, with breakfast and lunch outweighing dinner as the dining experience of choice.

“Brunch has become an occasion in itself, a social ritual,” says Schuermans, describing how staff at Chambar has “leaned into” the trend, ensuring there are more interesting breakfast items on the menu to cater to the growing demand.

“People are making it an event. It allows people to celebrate earlier in the day, in a way that feels fresh, light, and often less costly than dinner.”

The cost-of-living crisis isn’t just changing consumers’ eating habits, but their drinking habits too. As people look to better their health as well as their finances, boozing is being left behind.

According to the report, 41 per cent of Canadians report that their alcohol consumption has decreased over the past year, with Baby Boomers (46 per cent) and Gen X (45 per cent) leading the charge.

Schuermans says staff have noticed the decline in drinking, but, like the decline in eating out, it hasn’t disappeared completely — customers are just more particular about what that experience should involve.

“Guests are drinking less overall, but when they do, they want it to be memorable,” he says, describing how the shift in consumer behaviour has pushed bar teams to look for more creative options, rather than pull back on the offerings.

“There’s more focus now on low-ABV and zero-proof cocktails that feel as exciting as their alcoholic counterparts,” he says.

“It’s about giving guests an experience that still feels indulgent without necessarily being heavy. In some ways, this shift has inspired even more innovation behind the bar.”

Despite the disheartening statistics, Schuermans says he is optimistic for the future, predicting that the industry will evolve, as it has done before, to cater to consumers’ changing behaviour.

Hospitality is cyclical, and there may be waves of cautious spending, but the need for the connection that dining and drinking out brings will always remain, he says.

“The desire to gather around a table is fundamental to who we are as humans,” says Schuermans.

“Eating out nourishes more than your body. It creates connection, with your community, with new cultures, with the people you share a table with.”

Restaurants are “one of the few places where strangers feel like they belong,” and experiences are about being surprised by a flavour, having a conversation that lingers, or “simply feeling taken care of,” he says.

“These moments add richness to our lives.”