Many Canadian consumers are focused on value these days, as costs continue to rise almost across the board. For 71 per cent of consumers, cost is more of a factor this year than last year as they decide whether or not to dine out, according to a new survey released by Square and commissioned by Leger. As dining habits shift, 62 per cent of Canadians say they will reserve dining out for special occasions, while only 12 per cent still plan to eat out regularly, and 10 per cent plan to save dining out for date night.
How will consumers reduce their spending? For 61 per cent of respondents, the simple solution for managing their food spending is to dine out less often than last year. Rather than completely eliminating their restaurant visits, 46 per cent of people said they will still dine out, but will choose less expensive, more casual restaurants over higher-end establishments.
Operators may also see a change in traffic and ordering patterns, with 26 per cent of respondents planning to simply cut out appetizers, cocktails, or desserts to still have a night out, while 18 per cent said they could save money by swapping more expensive restaurant dinners with breakfasts, brunches, or lunches.
Operators will need to get creative with strategies to entice diners to visit. According to recent reports, in order to manage costs, 69 per cent of Canadian restaurant operators plan to raise prices in 2025, while 89 per cent plan to invest in automation technology and AI to improve their businesses this year and create operational efficiencies.
“Despite inflation easing, restaurants in Canada are continuing to face a number of challenges in their operations, whether it’s fluctuating food prices, employee retention, or ballooning payroll costs. Many restaurants are grappling with how to balance these increased expenses while still offering affordability to customers. We’ve seen some restaurants lean on automation and other time-saving technology to keep margins under control,” said Ming-Tai Huh, Head of Food and Beverage at Square.
Again this year, operators who up their perceived value are likely to attract consumers who are watching their spending but still want memorable dining experiences.
