TORONTO — Square has released its first Canadian Quarterly Restaurant Report, with this edition focused on full-service restaurants. The report brings together data and insights from across Square Canada’s food-and-beverage sellers and consumer surveys to examine dining trends, along with shifts in consumer spending and restaurant wages.
Canadians are re-thinking date night
For 71 per cent of consumers, cost is more of a factor this year than last when deciding whether to dine out.
While dining out used to be commonplace, 62 per cent of Canadians now say they’ll reserve it for special occasions while only 12 per cent still plan to eat out regularly. But for a small sector of would-be diners (10 per cent), dining out is now being reserved for date night only.
A year of deliberate dining at FSRs
For 61 per cent of respondents, the simple solution for managing spending on food is to dine out less often than last year. Forty-six per cent said they still dine out, but will opt for less expensive, more casual restaurants over higher-end establishments.
Just over a quarter of respondents (26 per cent) said they would simply cut out appetizers, cocktails or desserts in order to still have a night out, while 18 per cent said they could save money but still dine out by swapping more expensive dinners with breakfast, brunches or lunches.
Average cheque remains level, even as wages see steady growth
Canadians’ shrinking appetites for dining out will increase pressure on an industry already grappling with economic uncertainty and rising food costs.
For full-service restaurants using Square, average cheque amounts have remained relatively flat over the past two years, from $51.64 in December 2022 to $52.98 in December 2024, which amounts to a decrease when adjusted for inflation.
At the same time, hourly wages for full-service restaurant workers using Square have seen steady growth, increasing 7.74 per cent from a national average of $16.27 to $17.53 between December 2022 and December 2024.
“Despite inflation easing, restaurants in Canada are continuing to face a number of challenges in their operations, whether it’s fluctuating food prices, employee retention, or ballooning payroll costs. Many restaurants are grappling with how to balance these increased expenses while still offering affordability to customers. We’ve seen some restaurants lean on automation and other time-saving technology to keep margins under control,” says Ming-Tai Huh, head of Food and Beverage at Square.
