September 22, 2025
RED FM News Desk
A new report from Restaurants Canada reveals growing financial strain across the foodservice industry, as both rising costs and shifting consumer habits take a toll on restaurant operators.
According to the report, 75% of Canadians are dining out less frequently, with the number rising to 81% among young adults aged 18 to 34. The primary reason: the rising cost of living.
Restaurants Canada CEO Kelly Higginson calls the trend “alarming,” noting that consumers are increasingly seeking more value for their money. As a result, many are turning to quick-service restaurants or choosing less expensive meals like breakfast over dinner.
At the same time, restaurants are grappling with sharp increases in food prices, labour costs, and insurance, all of which have grown by double-digit percentages. As of June 2025, the report found that 41% of restaurants were either losing money or just breaking even.
To stay afloat, many restaurant owners are being forced to raise menu prices, cut staff, simplify offerings, or reduce store hours — all in an effort to manage the rising cost of doing business.
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