CANADA | The rising cost of living has limited the amount that Canadian's are dining out, according to the 2025 Foodservice Facts report.
Three in four Canadians (75 percent) are eating out less often due to the rising cost of living, according to Restaurants Canada’s 2025 Foodservice Facts report. That share rises to 81 percent for those aged 18 to 34.
As a result of this pullback in dining out, the 2025 outlook for foodservice businesses is mixed. An increase in domestic tourism is driving more sales, but Canadians are spending less per capita and opting to eat at home more than they were pre-pandemic.
“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.
“To stay competitive and optimize limited revenues, restaurant operators need to understand current Canadian dining trends.”
Per capita, Canadians are spending CAD 1,035 at full-service restaurants and CAD 1,135 at quick-service restaurants. In 2019, they were spending CAD 1,165 and CAD 1,150 respectively.
Canadians’ dining habits are shifting in noticeable ways. Millennials and Gen Z are leading the charge, with over half dining out or making a restaurant purchase at least once a week. Quick-service restaurants are also seeing a resurgence, with lunchtime visits climbing 7.6 percent, even surpassing pre-pandemic levels. Solo dining is on the rise too, up 28 percent year-on-year, highlighting a growing appetite for convenience and flexibility. Meanwhile, 65 percent of Canadians are swapping full meals for snacks at least once a month, with younger generations embracing this trend more often than Baby Boomers or Gen X.
Delivery has cemented itself as a go-to option, with 64 percent of Canadians ordering in over the past six months. Gen Z is the most enthusiastic group here, with nearly eight in ten relying on delivery compared to just under half of Baby Boomers. At the same time, alcohol consumption is waning: 41 percent of Canadians say they’re drinking less, with Boomers and Gen Xers leading the way. Among those cutting back, health, lifestyle choices, and saving money are the main drivers.
When it comes to food preferences, comfort classics still dominate, with fries, potatoes, and onion rings holding onto the top spot despite recording the biggest year-on-year dip. Breakfast foods, however, are gaining momentum, securing second place with a steady rise. On the beverage side, hot coffee continues to reign but slipped slightly, while fruit juice and iced tea picked up speed as consumers sought more variety. Together, these shifts paint a picture of evolving priorities: health, convenience, and value are reshaping how Canadians eat, drink, and engage with restaurants.
“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,” added Sara Hamdy, Research Analyst at Restaurants Canada and one of the report’s authors.
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