Report finds Canadians are drinking less, businesses are adapting

News Room
By News Room 3 Min Read

From restaurants to retail, a shift in Canada’s drinking habits is taking hold.

A new report from Restaurants Canada reveals that 41 per cent of Canadians say they’ve reduced their alcohol consumption over the past year, a trend that’s forcing the restaurant industry to adapt.

“There is a concern,” said Milena Stanoeva, a spokesperson for Restaurants Canada. “Alcohol is one of the highest-margin items for restaurants, so they’re now exploring ways to better serve those demographics.”

That’s where the rise of mocktails comes in. More bars and restaurants are introducing alcohol free beverage menus.

“Honestly, a lot of them are really good,” said one Toronto diner. “Some of the mixologists in the city are fantastic.”

The trend isn’t only in restaurants. At the Village Grocer in Markham, president of the store, Brad Fletcher says sales of non-alcoholic beer and wine are on the rise.

“Non-alcoholic beer and wine is really taking hold,” he said. “We are seeing great trends in that in our store.”

He says there’s a financial benefit for someone who sells all kinds of products.

“The margin on non-alcoholic wines, it completely exceeds what we get in beverage alcohol,” said Fletcher.

Why the drinking decline?

One person who spoke to CityNews says the shift away from alcohol is all about mental health.

“I find it becomes an escape and it’s too easy to just say, ‘Hey, this makes me feel good and I’ll just keep drinking more,”

In 2023, Health Canada updated its guidance on alcohol and health based on new research.

The agency found that consuming three to six standard drinks a week increased the risk of several types of cancer, including breast and colon cancer.

The report by Restaurants Canada found that 71 per cent of Canadians attributed drinking less to health reasons. However, they also say affordability is a major factor, particularly for millennials and Gen Z.

“They’re really having a hard time fitting going out and drinking into their budgets. And so they’re looking at alternatives or maybe drinking at home before going out, things like that,” said Stanoeva.

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