The scene is becoming more common than industry professionals would like: restaurant dining rooms, once packed, now have fewer and fewer diners and several empty tables. Many of their former customers now choose to dine at home, either through food delivery services or by buying groceries to eat at home.
Of course, the existence of a wide variety of digital platforms offering these services certainly plays a role. This is the case with food delivery and other areas that previously required travel and physical presence, but whose use has now become widespread among domestic users.
Of course, the existence of a wide variety of digital platforms offering these services plays a role. This is the case with food delivery and other areas that previously required physical presence. Many consumers have become accustomed to using the digital environment for activities such as banking, ticket purchases, or professional training. Even casino online Canada are now a common alternative to physical establishments.
It's not simply about avoiding travel. Many users mention the convenience of choosing from numerous options grouped on a single platform. Furthermore, some services and products are now only available online, such as certain secondhand items; or offer advantages in their digital versions, such as music and film downloads. Thus, the use of the internet for acquisitions has become widespread among users in the country.
Returning to the main topic, ordering food conveniently is a major advantage, as is having more control over the ingredients and how they're cooked when we buy it. But it's probably not the most compelling reason why three out of four Canadians are eating out less often. It's primarily the cost that's behind the scenario we've described, and it's a major concern for the food industry.
This cost is related to restaurant owners raising prices (and potentially raising them further in 2026); but, paradoxically, their profit margins don't reflect increased earnings. In fact, quite the opposite is happening; they're barely able to pass on their increased expenses to customers: up to a quarter of those surveyed by Restaurants Canada reported operating at a loss just a few months ago.
How is it possible that, with higher prices, profits are declining? The cost of food and the price of labor are two decisive factors. The widespread increase in prices and wages, for a staff that is increasingly difficult to find (partly due to new immigration policies), has plunged many restaurateurs into a struggle for mere survival, as well as a landscape of transformation (and not for the better).
The most immediate effect is a change in habits. On the one hand, consumers are eating dinner at home more often and snacking more at lunchtime. On the other hand, businesses are expanding their offerings with budget-friendly menus, reducing their staff, and having a single employee (or even the owner) handle more responsibilities.
The shortage of qualified staff isn't a problem unique to the restaurant industry; other sectors have also suffered from it. But in this particular industry, the combined costs of raw materials, rent, taxes, and general inflation—in addition to the fact that it's not always an essential service (given the practical alternative of consuming products at home)—are resulting in a profound crisis for restaurants.
To what extent? To the point that 7,000 restaurants closed last year, and another 4,000 could close in 2026. Fewer customers and lower profit margins, with a forecast that offers little cause for optimism. Some of the strategies implemented, such as discounted menus, to attract customers, haven't quite worked; at least, not in a sustainable way.
Therefore, organizations like Restaurants Canada are proposing a tax exemption to help these businesses offer more attractive prices to the public without having to sacrifice much-needed (and currently scarce) profits. A similar measure was implemented in Ontario between December 2024 and February 2025, and it could be a significant help during the current crisis.
While the current situation likely requires a greater number of initiatives, and ones that are more global in scope and improve consumer finances overall by increasing their purchasing power, otherwise the problem will eventually spread to other sectors.
