{"id":8272,"date":"2026-07-20T07:05:00","date_gmt":"2026-07-20T11:05:00","guid":{"rendered":"https:\/\/www.restaurantscanada.org\/?p=8272"},"modified":"2026-07-20T09:38:27","modified_gmt":"2026-07-20T13:38:27","slug":"rising-costs-outpace-sales-growth-eroding-restaurant-profitability-new-report-finds","status":"publish","type":"post","link":"https:\/\/www.restaurantscanada.org\/fr\/rising-costs-outpace-sales-growth-eroding-restaurant-profitability-new-report-finds\/","title":{"rendered":"Rising costs outpace sales growth, eroding restaurant profitability, new report finds"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Canada\u2019s restaurant industry is seeing stronger-than-expected sales growth in 2026, but rising operating costs continue to outpace revenue growth and erode profitability, leaving many operators at risk of closure and with less capacity to invest, according to Restaurants Canada\u2019s Q2 Quarterly Report released today.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The findings highlight the growing disconnect between sales and profitability and underscore the importance of an investment climate that enables restaurants to grow, invest, and create jobs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Canada\u2019s restaurant industry generates $125 billion in annual sales, contributes nearly four percent of Canada\u2019s GDP, and generates $2.25 in economic output for every dollar spent\u2014well above the national average. Restaurants are Canada\u2019s fourth largest private sector employer, with 1.2 million workers, 40% of whom are youth.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cStronger sales are always welcome, but they aren&rsquo;t enough to offset the cost pressures restaurants continue to face,\u201d said Kelly Higginson, President and CEO of Restaurants Canada. \u201cWhen restaurants are constantly managing rising costs and shrinking margins, investment slows, employment stagnates, new equipment isn\u2019t purchased as quickly, renovation plans are delayed and plans to expand are put on hold. That has repercussions well beyond the restaurant industry.\u201d<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Quarterly Report at a glance:<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Real commercial foodservice sales are expected to grow by 1.5% in 2026 (inflation-adjusted), a slight improvement over the Q1 forecast.<\/li>\n\n\n\n<li>64% of operators say their profitability is lower than last year.<\/li>\n\n\n\n<li>41% of operators are operating at a loss or breaking even, up from 36% in March.<\/li>\n\n\n\n<li>Rising fuel prices are hitting restaurants twice, through increased food, transportation and operating costs, and reduced customer traffic and spending.<\/li>\n\n\n\n<li>73% of restaurant operators say current tax policies at all levels of government are limiting their ability to invest and grow.<\/li>\n\n\n\n<li>71% say they would be more likely to invest if restaurant capital investments were eligible for accelerated tax write-offs like in other sectors.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">Despite ongoing profitability challenges, the restaurant industry continues to be a major engine of employment and economic growth. During the first half of 2026, the restaurant industry added approximately 50,000 youth to its workforce compared to the same period last year, making it Canada&rsquo;s largest net creator of youth jobs, and reinforcing its role as the country\u2019s leading source of first-time jobs.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cRestaurants continue to create opportunities for Canadians, particularly young people entering the workforce,\u201d said Higginson. \u201cBut that success shouldn&rsquo;t be taken for granted.&nbsp; It depends on an operating environment that allows businesses to invest, grow and create even more jobs.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The report\u2019s findings are clear\u2014stronger sales alone won\u2019t restore restaurant profitability. It requires addressing the cost pressures affecting Canadians and restaurants alike, while creating the conditions for restaurants to invest again.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Restaurants Canada is calling on the federal government to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Permanently exempt all food, including restaurant meals, from the GST\/HST to lower food costs for Canadians while supporting job creation and economic growth.<\/li>\n\n\n\n<li>Establish permanent full first-year expensing for restaurant capital investments under the Accelerated Investment Incentive to encourage reinvestment, modernization and growth.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe restaurant industry continues to be an economic driver in communities across Canada,\u201d said Higginson. \u201cWith the right investment climate, restaurants can continue investing, creating jobs and contributing to Canada&rsquo;s economic growth.\u201d For a full version of the Quarterly report, please reach out to the media contact below.<\/p>\n\n\n\n<hr class=\"wp-block-separator has-alpha-channel-opacity is-style-dots\"\/>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>Media Contact:<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Milena Stanoeva, Restaurants Canada&nbsp; | <a href=\"mailto:media@restaurantscanada.org\" target=\"_blank\" rel=\"noreferrer noopener\">media@restaurantscanada.org<\/a>&nbsp; | 647-921-1758&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>About Restaurants Canada<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Restaurants Canada is a national, not-for-profit association advancing Canada\u2019s diverse and dynamic foodservice industry. Restaurants are a $125 billion industry employing 1.2 million Canadians and the number one source of first-time jobs in Canada. Visit restaurantscanada.org for more information.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Canada\u2019s restaurant industry is seeing stronger-than-expected sales growth in 2026, but rising operating costs continue to outpace revenue&#8230;<\/p>\n","protected":false},"author":5,"featured_media":8274,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1,82],"tags":[90],"advocacy-issue":[],"news-region":[27],"class_list":["post-8272","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","category-press","tag-research-and-trends","news-region-national"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Rising costs outpace sales growth, 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