Cost of living drives 3 in 4 Canadians to skip eating out, report shows

Most Canadians are skipping meals at restaurants, a new report by Restaurants Canada released Monday shows.

Three in four Canadians (75 per cent) are eating out less often due to the rising cost of living, according to the industry group’s 2025 Foodservice Facts report.

The number rises to 81 per cent for younger Canadians, aged 18 to 34.

“While conditions have improved somewhat over the past year, this is still a very challenging market, as Canadians continue to face an affordability crisis and rising operational costs are squeezing operators’ margins,” said Kelly Higginson, president and CEO of Restaurants Canada.

In 2019, the average Canadian spent slightly more at full-service restaurants ($1,165) than they did at quick-service ones ($1,150). In 2025, this has flipped, with Canadians spending $1,035 per capita at full-service restaurants and $1,135 at quick-service restaurants.

A little more than half (51 per cent) of millennials make a purchase from a restaurant at least once a week, followed by 47 per cent of Gen Z Canadians, the report showed.

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At least once a month, 65 per cent of Canadians are likely to replace a full meal with a snack.

Millennials (53 per cent) and Gen Z (50 per cent) said they are likely to do this at least once a week, while baby boomers (32 per cent) and Gen X (42 per cent) Canadians are less likely to do this.

“Cost of living concerns are hitting everyone right now, especially younger generations. Canadians still want to dine out or order in, but they are looking for more value for their dollar when they do,” said Sara Hamdy, research analyst at Restaurants Canada and one of the report’s authors.

Return-to-office mandates have meant the lunchtime rush at quick-service restaurants has increased 7.6 per cent, the report said.

Meanwhile, 64 per cent of Canadians ordered delivery in the past six months, with Gen Z (79 per cent) leading the way, compared with less than half (49 per cent) of baby boomers.

Canadians are also drinking less, with 41 per cent reporting that their alcohol consumption has decreased over the past year.