Average Canadian Spending 1.1% Less at Restaurants in August

According to the latest data from Statistics Canada, real foodservice sales in Canada rose by 2.4% in August compared to August 2023. This represents the first increase in real sales since May 2024.  However, once adjusted for population growth, the average Canadian spent 1.1% less in August 2024 compared to August 2023 due to the rising cost of living, high household debt and low consumer confidence.

Bars faced even greater challenges, with real per capita spending down by 5.3% compared to August 2023. At the provincial level, Prince Edward Island experienced the largest drop, with restaurant spending averaging 4.0% less than 2023.

While the summer months are typically a peak season for operators, 2024 has been slower, with spending and foot traffic lower than in previous years. Based on Restaurants Canada’s most recent Quarterly report, a staggering 81% of survey respondents said their profitability was lower this summer than last due to lower guest counts and rising operating costs. As a result, more than half of restaurant companies said they are operating at a loss or just breaking even in September. The results are consistent with April, when 32% were operating at a loss and 15% were breaking even.

As interest rates gradually decrease, discretionary spending is expected to rise, which could lead to increased spending in restaurants. 

For more information check out the latest Fast Facts here.

As the Chief Economist and Vice President of Research for Restaurants Canada, Chris Elliott manages and produces a comprehensive research program that has made Restaurants Canada a leading source of information for and about Canada’s $114-billion foodservice industry. Chris tracks and analyzes key industry and economic indicators and translates them into member reports and publications. He also provides research to support Restaurants Canada’s lobbying efforts on issues that affect foodservice operators – from payroll taxes to food costs.

Chris has worked with Restaurants Canada for over 20 years, has a Bachelor of Arts and Master Degree in Economics and specializes in economic modelling and forecasting.