How Rising Uncertainty is Impacting the Restaurant Industry
Rising economic uncertainty is making it harder for restaurant operators to confidently plan and forecast their businesses. In a recent survey conducted by Restaurants Canada, nearly half (44%) of foodservice companies reported feeling less confident in forecasting week-to-week, compared to just 12% that feel more confident. Ongoing cost pressures and unpredictable consumer demand are creating a more cautious operating environment across the industry.
As a result, many operators are adjusting their business strategies to protect cash flow and manage risk. Common actions include delaying maintenance (51%), delaying capital investments (49%), and postponing expansion or renovation plans (48%). Others are reducing inventory or changing purchasing practices to better control costs.
The quick-service segment has been particularly affected, with nearly two-thirds of operators reporting reduced employee hours in response to uncertainty. While these measures may help businesses navigate short-term challenges, they also highlight growing hesitation across the industry to invest in growth and innovation amid continued economic instability.
In response, Restaurants Canada has proposed that the federal government introduce an accelerated capital cost allowance for the foodservice industry. This measure would help support reinvestment, modernization, and long-term growth by enabling operators to expand, upgrade equipment, and improve productivity despite ongoing economic uncertainty.
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As a Research Analyst with Restaurants Canada, Sara Hamdy contributes to a research program that helps make Restaurants Canada a trusted source of insight for and about Canada’s $125-billion foodservice industry. Sara develops and maintains analytical reports and interactive dashboards that present key economic and market trends in a clear and engaging way for members and the public.
Her work supports Restaurants Canada’s advocacy and industry initiatives by transforming complex data into accessible information that guides operators, policymakers, and media.
