Today’s turbulent times mean restaurant operators are juggling even more than they’re used to, from high staff turnover to tariff wars to rising costs, and beyond. As many restaurateurs continue to struggle to recover from the days of the pandemic, these additional challenges are making it even more difficult for operators to get ahead.
As we look towards the rest of 2025, operators are most concerned with food inflation, replacing labour as the most worrisome issue for restaurateurs.
Food inflation
A recent survey reveals that 52 per cent of respondents ranked food inflation as their primary concern, and 86 per cent included it in their top three. Economic uncertainty, along with American tariffs, persistent inflation, and supply chain disruption, are also concerning as restaurants try and maintain their margins amid rising costs.
According to Sylvain Charlebois, director of Dalhousie University’s Agri-Food Lab, food inflation rose an unexpected 1.9 per cent from February to March of this year, the highest increase seen since 1974, settling at a 3.2 per cent increase from the same time last year.
“With razor-thin profit margins, we are not equipped to deal with dramatic changes in food prices. Long-term tariffs leave us with no margin for error in holding menu prices as low as possible,” said Sean Kennedy, National Restaurant Association vice president for public affairs.
Today, the average meal out costs Canadians $63, which is a $7 increase over last year. However, there may be a threshold for diners as expenses rise across the board and tipflation persists. 45 per cent of operators have introduced upselling initiatives, and 34 per cent have simplified their menus to try and recoup costs by increasing cheque totals, rather than increasing menu prices.
“The 2025 Diner Trends Report shows that economic conditions have a clear impact on dining habits, and Canadians are being responsible spenders,” said Samir Zabaneh, chairman and CEO of TouchBistro. “As a result, Canadian diners are being strategic in where they spend their hard-earned dollars. People are looking to maximize value, from reviewing menu prices before deciding on where they’ll dine to leaning into loyalty programs. Restaurant operators should be attentive to what matters most to diners in order to draw new and returning customers.”
