Navigating Canadians’ Cost-of-Living Concerns and Rising Restaurant Operating Costs
With the cost of living remaining the number one concern for Canadians, a growing number of restaurants are offering deals and promotions to attract guests and boost traffic. According to recent research by Restaurants Canada, more than 8 in 10 Canadians say affordability is at least a moderate factor—and for some, a primary factor—when choosing a restaurant. Given today’s price-sensitive consumer, half of quick-service restaurant guests say they are looking for promotions, discounts and deals.
At the same time, restaurant operators continue to face upward pressure from food, labour and other operating expenses. This creates an ongoing challenge for restaurants as they work to keep menu prices competitive while managing rising costs and maintaining financially sustainable operations.
Against this backdrop, restaurant menu prices rose at their slowest rate since the summer of 2021, increasing 2.7% in June compared with June 2025. Menu prices at full-service restaurants increased 3.3%—up from 3.0% in May, while menu prices at quick-service restaurants rose just 1.7% year over year in June.
Menu price inflation varied significantly across the country in June, ranging from a low of 1.9% in Newfoundland and Labrador to a high of 4.9% in Manitoba. Both Manitoba and Saskatchewan reported above-average menu price growth, partly reflecting higher food price increases in those provinces compared with the rest of the country.
Note: Provincial menu price inflation figures reflect the overall restaurant sector. Breakdowns by full-service and quick-service restaurants are available only at the national level.
As the Chief Economist and Vice President of Research for Restaurants Canada, Chris Elliott manages and produces a comprehensive research program that has made Restaurants Canada a leading source of information for and about Canada’s $125-billion foodservice industry. Chris tracks and analyzes key industry and economic indicators and translates them into member reports and publications. He also provides research to support Restaurants Canada’s lobbying efforts on issues that affect foodservice operators – from payroll taxes to food costs.
Chris has worked with Restaurants Canada for over 20 years, has a Bachelor of Arts and Master’s Degree in Economics and specializes in economic modelling and forecasting.
