Your favourite restaurant might be losing money due to slower foot traffic and rising costs, according to a new survey.
A report from Restaurants Canada out today surveyed 220 of its members in late 2025 about their restaurant businesses. The results found that 26 per cent of restaurants surveyed were operating at a loss as of November 2025, while another 18 per cent were just breaking even.
Together, that means nearly half — 44 per cent — of respondents weren’t profitable, compared to 2019 when just 12 per cent were in that same financial position.
Those figures were a little better than in 2024, however, when 53 per cent of restaurants surveyed were losing money or breaking even.
“It is a very concerning number that is going to impact jobs. It’s gonna impact shifts. We’re going to see more restaurant closures,” Kelly Higginson, president and CEO of Restaurants Canada, told CBC News.
She says restaurants are struggling with rising costs across the board, on everything from food to rent to items like cutlery.
Toronto’s food scene has grown over the past decade, but some in the industry say the pool for professional chefs hasn’t kept up with the demand. CBC’s Mercedes Gaztambide spoke with restaurateurs about the decline.
In the report, food and labour costs were the two factors respondents were most concerned about — 89 per cent said they were worried about labour costs and 88 said the rising cost of food was an issue.
Inflation has had an especially big impact on food prices. In December, inflation for grocery items was up five per cent compared to the same time the year before, while that figure was at 2.4 per cent for items across the board.
…
Abyssus88 on
No kidding, Look at the cost of Rent & Food, No one can afford to even eat out anymore.
maxman162 on
Have they tried increasing prices and decreasing serving sizes?
Astrowelkyn on
Not really sure what the answer is aside from people earning more disposable income and/or being alleviated of more debt, or commercial landlords charging less rent.
chewwydraper on
What’s interesting is I was making half what I make now around 2017, yet I’d eat out 2 – 3 times a week comfortably.
Mind you, my rent also cost half what it does now, and restaurant prices were half what it is now.
I’m in my 30s now and don’t drink often, but when my buddies want to it’s now in someone’s garage when the default used to be go to the bar. But when a beer is $9 it just doesn’t make sense.
These days we maybe go out once a month, likely less. Would love to support local restaurants, but we can’t justify the bill, though I fully understand food costs are up for restaurants as well.
mfyxtplyx on
THE BIZ: „If you can’t afford to tip 20%, you can’t afford to eat out.“
ME: „OK.“
Weary_Rock1 on
I know someone you has to close their café and the very high rent is what hurt their business.
Caligula-II on
Landlords have a big part in this. I’ve seen this first hand. Greedy fuckers
ZooberFry on
I stopped going because a burger and fries is now $30 + tax and tip so… adios.
bloodandsunshine on
Sold and left the industry in December 2019 and I still wake up sweating imagining that I am chef/owner of a restaurant.
It’s incredibly exploitative from a labour perspective. It doesn’t feel good to pay great people as little as possible when you ask so much of them.
Delivery apps tried to gaslight businesses into believing that every second they weren’t at maximum capacity was a failure and that margin amounts don’t matter, only that the business is profitable at the end of the day.
This is because they (uber, skip, DoorDash, etc.) work at scale, off of our efforts and their riders/drivers.
The food available has decreased in quality and increased in price, from a distributor/wholesaler or direct from farm.
The scale of the animals killed and exploited for our food has also grown so monstrous that being part of that economy no longer felt ethical. From the animals themselves to the slaughterhouse workers, packers and butchers – it’s a brutal industry that requires subsidies from taxpayers without proper oversight.
Grand reformation of the entire service industry is needed – whatever this paradigm is called, it breaks everyone involved except those who can extract profit off the top.
Unfair-Pollution-426 on
Deserved. I cook better food at home. Eating out at a sitdown feels closer to fast food did in the 2000s. Decent and quick.
I miss when restaurants gave me pause to appreciate the meal.
rad2284 on
Not a surprise. People have less disposable income and eating out is one of the first luxuries they cut out. Another example of how using housing to drive GDP growth is actually detrimental in the long term, particularly in a consumer driven economy like ours.
But beyond all that, the restaurant business is low margin with high failure rates. Canada has an oversaturation of restaurants as well. In the long term, it’s much healthier for our economy to shift away from being the fast food, immigration fraud and housing speculation capital of the world and free up those assets to develop industries and companies the rest of the world needs. It’s time to think a little bigger.
Mr_Canada1867 on
$14 after tax and tip for a Guinness at a bar…. lol, at that price i can buy a 4 pack of 440ml with tax and can deposit included.
player1242 on
Gouging catches up
akd432006 on
Ironically, addressing the housing crisis is probably the best way of stimulating the economy.
If Canadians weren’t spending so much on housing, they would be able to eat out, travel, go to the movies, shop. It all trickles down.
pyfinx on
Can we just get rid of the stupid tipping thing… or just incorporate into one single price.
I just hate it when they disguise the additional cost as “tips” when there’s sweet fuck all service at all.
Lumpy-Day-4871 on
Good.
The majority of restaurants are serving absolute slop and pretending its good enough to charge $30 for a burger, $12 for a beer, and then expect an 18-20% tip on that.
I’ve basically stopped eating out because the dinner I make at home is better than what I’m getting out with a „chef“ preparing it.
I’m happy putting down decent money for a good dinner and night out. I’m not spending money to eat a TV dinner meal.
vanwhisky on
A meal out plus a tip is more of a luxury item these days.
IllProgress4439 on
I’ve stopped eating out. It’s not worth it anymore. Between low quality and outrage tip expectations, no thank you.
sorvis on
Man who thought not paying people enough to have disposable income would somehow not take out the restaurant business or any business that relies on disposable income.
Can’t pay people enough to have disposable income for Extra’s how the FUCK DO YOU EXPECT PEOPLE TO HAVE CHILDREN AND RAISE A FAMILY.
Special_Analysis1387 on
I mean servers said „if you can’t afford to tip 20% then don’t eat out“ and people took that literally. You can’t expect a tip of 20% (minimum now) at restaurants after taxes.
Either lower the price of dishes, or lower tip prompts. Or this will keep happening.
pmmedoggos on
What? No way. I really wanted a Syco Angus Beef Patty on a Brioche bun with coleslaw and parmesan garlic fries. I even had my $45 ready!
_Fauxpaw on
I feel for them but like.. if it costs me $10 to make a plate of decent food at home, I’m not paying $30-40 at a restaurant for something of a similar size, even if it’s better.. *and I have to tip on top*???
ProofByVerbosity on
In BC, there’s tax, liquor tax and I believe a lot of places you tip (18%+) on that tax. So I’m paying 30% on top of my bill. Gee, why don’t people go out anymore?
horizon_games on
Good. Default 18% tip on a $26 burger means these places SHOULD go out of business. It’s a sick world now.
Method__Man on
Shocking when we let rich people and corporations buy all the land/buildings and put MASSIVE rent on everything.
Electricalthis on
Rent, food, wages and taxes are all playing a role. Less people having money less people drinking so many reasons why
Jedi_I_am_not on
Sky high prices post Covid, insane tipping standard and mediocre food
Ok-Estimate1224 on
Japan is the only place that makes sense when it comes to eating out. They have a robust local supply chain system that cuts out the middle men and other unnecessary cost, low rent, low wages, and no tipping. What’s funny is that people who earn low wages in Japan can still afford eating out while the people that earn decent wages here in Canada cannot. It is a luxury to eat out now unless we find a solution that mimics the japanese dining system.
MarquessProspero on
We are watching the end of the glory days that started in the early 1990s. Before then eating out was a treat — maybe once a month, maybe less. We are heading back to those days (just that no-one will know how to cook now). On so many fronts we are watching the end of a glorious era and heading back to a world of haves and have nots (with most of us being in the have not class). We will blame politicians for a while but there will be real social unrest eventually.
mrmcbluffy on
Tipping culture being out of control is the #1 reason. Go back to 15% as the norm and they would be busy again. Get rid of greedy tip prompts making people feel cheap tipping less than 22%.
otkabdl on
Yup, too expensive. Even McDonalds, sometimes I think „I want a quarter pounder with cheese“ and then I’m like „but I can save $10 and make a sandwich at home..“
JoshHero on
Everything costs way too damn much.
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33 Kommentare
Your favourite restaurant might be losing money due to slower foot traffic and rising costs, according to a new survey.
A report from Restaurants Canada out today surveyed 220 of its members in late 2025 about their restaurant businesses. The results found that 26 per cent of restaurants surveyed were operating at a loss as of November 2025, while another 18 per cent were just breaking even.
Together, that means nearly half — 44 per cent — of respondents weren’t profitable, compared to 2019 when just 12 per cent were in that same financial position.
Those figures were a little better than in 2024, however, when 53 per cent of restaurants surveyed were losing money or breaking even.
“It is a very concerning number that is going to impact jobs. It’s gonna impact shifts. We’re going to see more restaurant closures,” Kelly Higginson, president and CEO of Restaurants Canada, told CBC News.
She says restaurants are struggling with rising costs across the board, on everything from food to rent to items like cutlery.
Toronto’s food scene has grown over the past decade, but some in the industry say the pool for professional chefs hasn’t kept up with the demand. CBC’s Mercedes Gaztambide spoke with restaurateurs about the decline.
In the report, food and labour costs were the two factors respondents were most concerned about — 89 per cent said they were worried about labour costs and 88 said the rising cost of food was an issue.
Inflation has had an especially big impact on food prices. In December, inflation for grocery items was up five per cent compared to the same time the year before, while that figure was at 2.4 per cent for items across the board.
…
No kidding, Look at the cost of Rent & Food, No one can afford to even eat out anymore.
Have they tried increasing prices and decreasing serving sizes?
Not really sure what the answer is aside from people earning more disposable income and/or being alleviated of more debt, or commercial landlords charging less rent.
What’s interesting is I was making half what I make now around 2017, yet I’d eat out 2 – 3 times a week comfortably.
Mind you, my rent also cost half what it does now, and restaurant prices were half what it is now.
I’m in my 30s now and don’t drink often, but when my buddies want to it’s now in someone’s garage when the default used to be go to the bar. But when a beer is $9 it just doesn’t make sense.
These days we maybe go out once a month, likely less. Would love to support local restaurants, but we can’t justify the bill, though I fully understand food costs are up for restaurants as well.
THE BIZ: „If you can’t afford to tip 20%, you can’t afford to eat out.“
ME: „OK.“
I know someone you has to close their café and the very high rent is what hurt their business.
Landlords have a big part in this. I’ve seen this first hand. Greedy fuckers
I stopped going because a burger and fries is now $30 + tax and tip so… adios.
Sold and left the industry in December 2019 and I still wake up sweating imagining that I am chef/owner of a restaurant.
It’s incredibly exploitative from a labour perspective. It doesn’t feel good to pay great people as little as possible when you ask so much of them.
Delivery apps tried to gaslight businesses into believing that every second they weren’t at maximum capacity was a failure and that margin amounts don’t matter, only that the business is profitable at the end of the day.
This is because they (uber, skip, DoorDash, etc.) work at scale, off of our efforts and their riders/drivers.
The food available has decreased in quality and increased in price, from a distributor/wholesaler or direct from farm.
The scale of the animals killed and exploited for our food has also grown so monstrous that being part of that economy no longer felt ethical. From the animals themselves to the slaughterhouse workers, packers and butchers – it’s a brutal industry that requires subsidies from taxpayers without proper oversight.
Grand reformation of the entire service industry is needed – whatever this paradigm is called, it breaks everyone involved except those who can extract profit off the top.
Deserved. I cook better food at home. Eating out at a sitdown feels closer to fast food did in the 2000s. Decent and quick.
I miss when restaurants gave me pause to appreciate the meal.
Not a surprise. People have less disposable income and eating out is one of the first luxuries they cut out. Another example of how using housing to drive GDP growth is actually detrimental in the long term, particularly in a consumer driven economy like ours.
But beyond all that, the restaurant business is low margin with high failure rates. Canada has an oversaturation of restaurants as well. In the long term, it’s much healthier for our economy to shift away from being the fast food, immigration fraud and housing speculation capital of the world and free up those assets to develop industries and companies the rest of the world needs. It’s time to think a little bigger.
$14 after tax and tip for a Guinness at a bar…. lol, at that price i can buy a 4 pack of 440ml with tax and can deposit included.
Gouging catches up
Ironically, addressing the housing crisis is probably the best way of stimulating the economy.
If Canadians weren’t spending so much on housing, they would be able to eat out, travel, go to the movies, shop. It all trickles down.
Can we just get rid of the stupid tipping thing… or just incorporate into one single price.
I just hate it when they disguise the additional cost as “tips” when there’s sweet fuck all service at all.
Good.
The majority of restaurants are serving absolute slop and pretending its good enough to charge $30 for a burger, $12 for a beer, and then expect an 18-20% tip on that.
I’ve basically stopped eating out because the dinner I make at home is better than what I’m getting out with a „chef“ preparing it.
I’m happy putting down decent money for a good dinner and night out. I’m not spending money to eat a TV dinner meal.
A meal out plus a tip is more of a luxury item these days.
I’ve stopped eating out. It’s not worth it anymore. Between low quality and outrage tip expectations, no thank you.
Man who thought not paying people enough to have disposable income would somehow not take out the restaurant business or any business that relies on disposable income.
Can’t pay people enough to have disposable income for Extra’s how the FUCK DO YOU EXPECT PEOPLE TO HAVE CHILDREN AND RAISE A FAMILY.
I mean servers said „if you can’t afford to tip 20% then don’t eat out“ and people took that literally. You can’t expect a tip of 20% (minimum now) at restaurants after taxes.
Either lower the price of dishes, or lower tip prompts. Or this will keep happening.
What? No way. I really wanted a Syco Angus Beef Patty on a Brioche bun with coleslaw and parmesan garlic fries. I even had my $45 ready!
I feel for them but like.. if it costs me $10 to make a plate of decent food at home, I’m not paying $30-40 at a restaurant for something of a similar size, even if it’s better.. *and I have to tip on top*???
In BC, there’s tax, liquor tax and I believe a lot of places you tip (18%+) on that tax. So I’m paying 30% on top of my bill. Gee, why don’t people go out anymore?
Good. Default 18% tip on a $26 burger means these places SHOULD go out of business. It’s a sick world now.
Shocking when we let rich people and corporations buy all the land/buildings and put MASSIVE rent on everything.
Rent, food, wages and taxes are all playing a role. Less people having money less people drinking so many reasons why
Sky high prices post Covid, insane tipping standard and mediocre food
Japan is the only place that makes sense when it comes to eating out. They have a robust local supply chain system that cuts out the middle men and other unnecessary cost, low rent, low wages, and no tipping. What’s funny is that people who earn low wages in Japan can still afford eating out while the people that earn decent wages here in Canada cannot. It is a luxury to eat out now unless we find a solution that mimics the japanese dining system.
We are watching the end of the glory days that started in the early 1990s. Before then eating out was a treat — maybe once a month, maybe less. We are heading back to those days (just that no-one will know how to cook now). On so many fronts we are watching the end of a glorious era and heading back to a world of haves and have nots (with most of us being in the have not class). We will blame politicians for a while but there will be real social unrest eventually.
Tipping culture being out of control is the #1 reason. Go back to 15% as the norm and they would be busy again. Get rid of greedy tip prompts making people feel cheap tipping less than 22%.
Yup, too expensive. Even McDonalds, sometimes I think „I want a quarter pounder with cheese“ and then I’m like „but I can save $10 and make a sandwich at home..“
Everything costs way too damn much.