TORONTO — Nighttime spending is down across Canada, from an average of 37 per cent in 2023 to 34.5 per cent this year, according to technology company Square.
Square’s study, conducted by Morning Consult, analyzed millions of in-person transactions and revealed that Calgary and Toronto had the highest percentage of nighttime spending at bars, cafés and restaurants, with 38 per cent of transactions occurring between 7 p.m. and 4 a.m. However, the nightlife scene has slightly dimmed compared to last year, with nighttime transactions down from 41 per cent in Toronto and 39 per cent in Calgary in 2023.
According to the study, 43 per cent of Canadians say they go out slightly or a lot less often now than in past years. Of this, 23 per cent fall into the “a lot less often” camp. The cost of food was the main driver for this change in behaviour, with 72 per cent indicating that the rising cost of food is the main reason they stay home. Rising drink prices were another factor mentioned by 51 per cent of respondents.
“We’re seeing a bit of a re-set, but given the broader economic climate, we’re calling this a win,” says Ara Kharazian, Research & Data lead at Square. “The share of nighttime spending is still in line with or above comparable cities in the U.S. or Europe. Slowing inflation will ideally improve customer confidence, so we feel optimistic about Canada’s night economy going forward.”
As bars and restaurants look for ways to bring in more patrons, Happy Hour is one area that offers the chance to attract customers. But the survey found that the promised discounts associated with early drinks and dinner aren’t enough to move the needle.
Forty-seven per cent believe that the discounts offered during Happy Hour are negligible; 62 per cent say that even with Happy Hour discounts, it’s still too expensive to go out; and 32 per cent say they attend Happy Hours a lot less often now than in past years.
Even if outing have dipped, Canadians are still up for the occasional night out, and for beer drinkers, preferences are pretty clear cut. According to the survey, 31 per cent of Canadians prefer lager. Blondes were the second most popular, but by a very large margin, with only 12 per cent. Pilsner (nine per cent); IPA (six per cent); and stout (four per cent) rounded out the less popular types.
Beer
When it comes to flavoured or specialty beers, 14 per cent of beer drinkers indicated a deep dislike for such creations; 85 per cent are more open to them; and 24 per cent said they love trying new concoctions. Forty-three per cent of beer drinkers said their preferences change depending on the flavour.
“We’ve definitely observed a shift in preferences over the past few years. Our customers used to come in looking for new and exciting speciality options, but now they lean toward the more tried and true,” says Adin Wener, managing partner of Henderson Brewing Company in Toronto. “I’d say people are less curious with craft beer, and are looking for consistency, rather than something surprising but that they may not enjoy.”
Wine
Canadians are split between red and white. When it comes to their preferences, 29 per cent of Canadians prefer red, 22 per cent prefer white and 12 per cent opt for sparkling varieties.
Among the 72 per cent of Canadians who drink wine, Merlot is their favourite red varietal, preferred by 21 per cent, followed by Cabernet Sauvignon (19 per cent), red blends (18 per cent), and Pinot Noir (16 per cent). When it comes to white, 20 per cent of wine drinkers prefer Chardonnay, followed by 18 per cent who prefer Pinot Grigio, Rose (14 per cent), Sauvignon Blanc (13 per cent), and Moscato (11 per cent).
Mocktails
A third of Canadians are on board with mocktails, with 33 per cent saying that they love to get a fancy drink without the alcohol, with younger Canadians leaning into non-alcoholic beverage culture more than older ones. Conversely, 45 per cent say mocktails are too expensive for what they are.
