New research reveals 57% of Canadians have reduced restaurant spending
A new study from the LARi Insight market research panel highlights Canadians’ shifting spending habits toward restaurants and fast food. Nearly 57% (56.8%) indicated they are spending less on restaurant purchases than one year ago. Just 9.4% indicated they are spending more on dining out, while 33.8% indicated no change.
The predominant reason for spending less was budgeting/saving. While other factors such as higher costs of tipping, health/diet restrictions, and relationship changes were the driver of change for some, the vast majority attributed their changing habits to cost savings.
“I am leaning more towards homecooked meals. Takeout meals are very expensive, about $26-30 per meal for a single person.” – Joan, Pefferlaw, Ont.
“Cost. Cost of living is soaring, so dining out is a luxury.” – Asha, Red Deer, AB
Dining is One of Few Manageable Expenses
Comments received from our survey suggest that restaurant meals are one of few areas that some Canadians feel they can cut back in order to manage their budget. Rising inflation, particularly in areas like rent and groceries, have squeezed out some luxuries, such as sitting down at a nice restaurant for a meal.
“Inflation has caused prices to escalate. $200 used to be at least 4 meals out for 2 people, but now it is 2 if you’re lucky.” – Paul, Windsor, Ont.
Canadians have told us they feel the pinch of inflation at the grocery store too. The cost of groceries has increased due to inflation in recent years, and the 2025 Canada’s Food Price Report (CFPR) forecasts an overall increase of 3-5%. The average family of four will spend $16,833.67 on food in 2025, over $800 more than last year.
But that doesn’t mean dining out has become a better cost choice – most restaurants have followed suit and raised the prices of menu items accordingly. Through 2022 most of 2023, inflation on restaurant prices was consistently lower than inflation on groceries. That trend reversed in 2024, when food inflation stabilized at 1.9% while restaurant prices jumped 5.1%. And it’s hard to blame the restauranteurs when almost two-thirds of restaurants are operating at a loss or barely breaking even according to data from Restaurants Canada.
2-5 Restaurant Meals a Month is Most Common
In our survey, 47% indicated they purchase restaurant food occasionally (defined at 2-5 times a month). A high degree of Canadians, 30%, indicated “rarely” (once a month or less). “Often” (2-4 times a week) was next at 17%. Just 4% chose “very often”, defined as 5 or more times per week, and 2% chose “never”.
It is hard to compare year-over-year patterns of dining habits, as other factors have changed the landscape. Covid may have forever altered some social patterns. Food delivery services and food kits have made food more accessible in new ways. And social pressure for tipping, in more establishments and at higher percentages, may be influencing Canadians’ willingness to dine out.
Plan Your Dining Budget: Canadian Restaurant Meal Cost Calculator
If you’d like to explore the budget impact of dining out, try our Canadian Food Budget Calculator. It lets you set average costs for dining in, and compare against your average costs of dining out. By choosing different frequencies for each, you’ll quickly see the annual financial cost of your dining choices.
