High Gas Prices Add Pressure on Restaurants
The conflict in the Middle East has contributed to a sharp increase in gasoline prices this year. On average, gasoline prices in Canada rose by nearly 50% between December 2025 and May 2026.
Restaurant operators report that rising gasoline prices are affecting their businesses in multiple ways. According to Restaurants Canada’s latest survey, the most commonly cited impacts are higher food and ingredient costs (86%), supplier fuel surcharges (86%), and increased operating expenses (81%). These cost pressures are also affecting consumer behaviour, with 57% of operators reporting reduced customer traffic and 54% reporting lower spending per visit.
Overall, the impacts are being felt across all segments of the industry, with relatively little variation between quick-service and full-service restaurants. However, quick-service operators were somewhat more likely to report higher operating costs and fuel surcharges associated with delivery services. Accommodation and table-service operators, meanwhile, were more likely to report declines in tourist traffic.
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.
