Canadians Cutting Back on Restaurant Meals Amid Rising Cost of Living
A new report by Restaurants Canada reveals that a significant majority of Canadians are reducing their restaurant spending due to the rising cost of living. The 2025 Foodservice Facts report indicates a shift in dining habits, particularly among younger demographics, as affordability concerns impact consumer choices.
The Impact of Inflation on Dining Out
According to the report, 75 per cent of Canadians are eating out less frequently because of the increased cost of living. This number rises to 81 per cent among Canadians aged 18 to 34. Kelly Higginson, president and CEO of Restaurants Canada, notes that while conditions have improved slightly, the market remains challenging due to affordability issues and rising operational costs.
Shifting Preferences: Full-Service vs. Quick-Service Restaurants
The report also highlights a change in spending habits between full-service and quick-service restaurants. In 2019, Canadians spent slightly more at full-service restaurants ($1,165) compared to quick-service ones ($1,150). However, in 2025, this has reversed, with per capita spending at full-service restaurants dropping to $1,035, while quick-service restaurants see an increase to $1,135.
Generational Dining Habits
Millennials and Gen Z continue to be frequent restaurant patrons, though they are also adapting to cost pressures. 51 per cent of millennials make a purchase from a restaurant at least once a week, followed by 47 per cent of Gen Z Canadians. Furthermore, many are opting for snacks over full meals. 65 per cent of Canadians replace a full meal with a snack at least once a month. This trend is more prevalent among millennials (53 per cent) and Gen Z (50 per cent) compared to baby boomers (32 per cent) and Gen X (42 per cent).
Strategies for Affordability
Sara Hamdy, research analyst at Restaurants Canada, explains that “Cost of living concerns are hitting everyone right now, especially younger generations. Canadians still want to dine out or order in, but they are looking for more value for their dollar when they do.” This suggests a demand for more affordable options and deals within the restaurant industry.
Additional Trends in the Restaurant Industry
Other factors are also influencing restaurant trends. Return-to-office mandates have increased the lunchtime rush at quick-service restaurants by 7.6 per cent. Delivery services remain popular, with 64 per cent of Canadians having ordered delivery in the past six months, led by Gen Z (79 per cent). Interestingly, alcohol consumption is down, with 41 per cent of Canadians reporting a decrease in the past year.
