TORONTO – A new report shows restaurants are under pressure as consumers steer away from dining out, while rising operational costs squeeze profit margins.
A new Restaurants Canada report finds three in four Canadians are eating out less, often because of the high cost of living. That share is even higher among those aged 18 to 34 at 81 per cent.
Restaurants Canada chief executive Kelly Higginson says it’s an “alarming” trend for the foodservice industry.
She says Canadians are looking for more value for their dollar and shifting toward quick-service restaurants or opting for breakfast menus over dinner because it’s less expensive.
Meanwhile, the cost of food, labour and insurance has grown by double digits. The report suggests 41 per cent of restaurants were either operating at a loss or breaking even as of June 2025.
Higginson says restaurants are feeling pressured to raise prices, reduce staff, change menus and adjust their store hours to keep up with the high cost of operations.
This report by The Canadian Press was first published Sept. 22, 2025.
