Despite a steep drop in consumer confidence, the share of Canadians who ordered from a restaurant at least once in June rose across all dayparts compared to May. After sitting on the sidelines in previous months, a larger share of 35 to 54 year olds, and those 55 and older, ordered from a restaurant at least once in June. While a greater share of Canadians purchased a meal or snack at least once in June, the share of those that ordered lunch or dinner from a restaurant more than once a week held steady.
Economic Headwinds Could Slow Restaurant Traffic
Greater inflation, rising interest rates and growing concern about a possible recession in the future could lead to a moderation in foodservice spending. Just over one in four Canadians said they will go out less often to a restaurant in July. By comparison, 12% of respondents said they will go out more often to a quick-service restaurant and 18% that said they will go out more often to a table-service restaurant.
Restaurants Continue to Struggle Financially
Although the REACT survey indicates that restaurant traffic rose in the second quarter of 2022, overall visits to restaurants remain well below pre-pandemic levels. Based on preliminary data from Restaurants Canada’s Restaurant Outlook Survey, half of all foodservice businesses are currently operating at a loss, or just breaking even, due to rising food, labour, rent and other operating expenses.
Click here to download the latest REACT Survey.
Restaurants Canada Digital
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