Report finds restaurants under pressure as Canadians cut back on dining out

September 22, 2025

RED FM News Desk

A new report from Restaurants Canada indicates that restaurants are under pressure as Canadians try to save money by dining out less.

The report found that due to the high cost of living, three out of four Canadians are eating out less frequently. This trend is even more pronounced among young people aged 18 to 34, with 81% of them cutting back.

Kelly Higginson, the chief executive of Restaurants Canada, stated that this is an alarming trend for the foodservice industry. She said the association’s findings show that restaurants are struggling because while Canadians aren’t dining out as often, rising operational costs are squeezing profit margins.

According to Higginson, Canadians are looking for more value for their money. As a result, restaurants are feeling pressure to raise prices, reduce staff, and even adjust their hours to cope with the high costs.