By Samir Zabeneh

With an unpredictable economy, persistent tariffs, and evolving habits reshaping the culinary landscape, the Canadian foodservice industry has faced mixed challenges and opportunities in the past. Recent reports paint a clear picture of inflation’s impact on the foodservice industry and shifting dining preferences.

Rising menu prices have emerged as a major deterrent for diners, with 82 per cent of Canadian diners reporting that significant price increases would discourage them from dining out, and 84 per cent saying the same for takeout and delivery. For foodservice operators, the takeaway is clear: while slight menu adjustments may be necessary to balance rising costs, price increases should remain under 11 per cent, the threshold at which consumer willingness begins to invariably drop.

Despite price concerns, Canadians are still spending more per dining-out occasion, averaging $63 per cheque, which is a $7 increase from the previous year. Restaurants can retain diners by providing clear value, such as happy hour deals, affordable menu options, and transparency around additional fees like service charges.

Takeout and delivery remain resilient

Ordering takeout and delivery has become a mainstay of Canadian dining culture. 30 per cent of diners now report ordering takeout at least once a week, outpacing dine-in rates. The importance of convenience is a key motivator for 43 per cent of respondents who ordered takeout more frequently than the year before.

Millennials and Gen Z dominate off-premise dining, with 39 per cent ordering in at least once a week. However, customers can get easily frustrated by inaccurate orders (27 per cent), high fees (22 per cent), and cold food (15 per cent). Restaurants looking to attract off-premise customers should consider offering direct online ordering systems to bypass third-party app fees and incentivize pick-up orders.

There is a growing customer preference for placing to-go orders directly with the restaurant, with 22 per cent preferring to place an order by phoning the restaurant directly over other options. Off-premise ordering is centred on reliability, and 30 per cent of diners say they expect their takeout orders within 30 minutes, leaving little margin for error. To meet the demand, restaurants must focus on logistics and staff efficiency.

Generational dynamics defy traditional norms

Generational dynamics are reshaping Canada’s dining scene, as Millennials and Gen Z dine out far more than Gen X and Boomers, making them critical demographics for foodservice operators to target. This suggests that cost-consciousness is dominating decision-making in 2025, with Gen X diners being the most sensitive to pricing changes. Additionally, 25 per cent of 18 to 34-year-old diners now dine alone compared to just 18 per cent the year before. Capitalizing on the rising solo dining means creating welcoming spaces for individual diners, such as bar seating or individualized table arrangements, and crafting menu items geared toward their lifestyles.

Additionally, Gen Z and Millennials are leading the way in loyalty program participation: 42 per cent are members of restaurant loyalty programs, up from 29 per cent in 2024. These programs are particularly effective in driving frequent engagement, with 40 per cent of members interacting with loyalty programs weekly or more often. Tailoring offers like personalized discounts, limited-time offers, or BOGO (Buy One, Get One Free) deals can help younger diners feel heard.

Balancing technology and service

While 52 per cent of diners feel somewhat or very comfortable with technology, this acceptance often skews toward younger generations. Gen Z and Millennials are driving adoption, with 64 per cent open to technology such as self-serve kiosks or tableside tablet ordering, compared to only 33 per cent of Boomers. Operators must thoughtfully integrate technology without detracting from the human element with innovations like streamlined online ordering systems or payment automation tools for operational efficiencies while preserving what Canadians value most: personalized service. For operators cautiously exploring AI solutions, an initial focus on non-invasive implementations like AI-driven discounts and menu offers may face less customer resistance.

Succeeding in an evolving industry

The Canadian foodservice industry demands adaptability in a fast-changing market. Success hinges on data-driven strategies to address shifting consumer preferences, while leveraging technology to improve operations and customer experiences. Building strong supply chain relationships, managing rising costs, and staying flexible are also key. By focusing on innovation and informed decision-making, foodservice professionals can ensure they remain flexible and resourceful.

Samir Zabaneh is the CEO of TouchBistro, an all-in-one restaurant management system. He has held various executive roles, including CFO and COO in large global fintech companies, including Fiserv Inc. (previously First Data), Global Payments (previously Heartland Payments) and Moneris Solutions, executing various successful strategies related to vertical-specific software solutions integrated with payments processing.