Restaurant sales stumble in September with weakest nominal growth of 2024
According to the latest data from Statistics Canada, foodservice sales in Canada rose by tepid 1.4% in September compared to September 2023. This marks the weakest monthly sales growth recorded in 2024. Moreover, once adjusted for menu inflation, real foodservice sales declined by 2.1% in September 2024. Year-to-date, nominal growth stands at 3.9%, while real growth is slightly negative at -0.3%.
Bars continue to face significant challenges, with real sales dropping by 9.9% compared to September 2023. Real spending at full-service restaurants fell by 4.1% in September compared to a slight decrease of 0.3% at quick-service restaurants.
At the provincial level, Newfoundland and Labrador experienced another setback. After showing signs of a modest recovery in August, real sales declined by 4.3% in September due to an 11% drop in sales at full-service restaurants. As a result, year-to-date sales are down by 1.7% – the second-weakest performance of any province, after Prince Edward Island (-3.9%).
With the restaurant industry continuing to struggle after a weak summer, the GST tax holiday, set to begin on December 15th, will offer some relief. The GST tax cut, along a provincial tax holiday in some provinces, is projected to increase total foodservice sales in Canada by an additional $1.5 billion. Paired with gradually decreasing interest rates, these developments provide much-needed hope to an industry in dire need of support.
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.
