Affordability Pressures Persist, but Social Activities Still Drive Dining
Restaurants Canada’s January REACT Survey shows Canadians cut back on dining out at the start of the year, with the Consumer Dining Index declining amid ongoing affordability pressures and severe winter weather. As a result, dining frequency has eased, particularly among higher-frequency visitors.
Affordability remains the biggest reason Canadians are cutting back. 44% said budget pressures led them to dine out less often in January, making household finances the most significant factor impacting restaurant visits. Winter weather also dampened activity, particularly in Ontario, but financial concerns continue to weigh most heavily on dining decisions.
The impact is even more pronounced among younger Canadians. More than half of Gen Z, 51%, reported dining out less often because of budget constraints, compared to 44% nationally. Gen Z is also more likely to feel time pressure, with 32% citing limited time as a reason for dining out less often, versus 18% overall. By contrast, Baby Boomers appear somewhat less affected by financial pressures, with 35% dining out less often because of budget concerns.
At the same time, restaurants remain central to social connection. Social activities and gatherings were the only factor with a net positive effect on dining frequency, with 28% of Canadians dining out more often for this reason. Among Gen Z, that jumps to 42%, highlighting the importance of restaurants as social spaces. Time availability also plays a role, with one in four Gen Z respondents saying having more time led them to dine out more often, compared to 13% nationally.
For a deeper look at how affordability, weather, and generational differences are shaping consumer behaviour, explore the full January REACT Survey in the button below.
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.
