Canada’s restaurant sector continues to show resilience as we move into 2026. Despite evolving spending patterns and ongoing economic pressure, national food-service sales remain strong — with Ontario leading much of the momentum.
Sales Momentum
Canada’s food-service and drinking-place sales reached $8.5 billion in July 2025, marking the fifth month in a row of growth. Ontario was the biggest driver of this gain, supported by tourism activity and a strong patio season.
Industry reports from Restaurants Canada show that Canadians are dining out slightly more often, although they are spending a little less per visit. Value-based menu engineering and strategic offers are helping operators keep traffic consistent.
→ Source: Restaurants Canada – Industry Research
Regional Trends
Urban centres like Toronto and Ottawa continue to outperform national averages. Suburban and small-market restaurants are also seeing steady gains, supported by population shifts and hybrid-work flexibility.
Commercial real estate data from TRREB indicates an increase in lease renewals for food-service spaces. This signals stronger operator confidence and more willingness to commit to multi-year terms.
Consumer Behavior
Even with lingering inflation, Canadians still view restaurant dining as an accessible treat. Loyalty programs, subscription models, and experiential add-ons are encouraging repeat visits without relying on heavy discounting.
Operators who balance value, convenience, and consistency are achieving the strongest retention.
Outlook for 2026
Ontario’s restaurant sector is entering 2026 on firmer footing. With stable sales, improving lease conditions, and steady consumer demand, it’s a strong moment for operators to make strategic moves.
Restaurant Realty recommends:
- renegotiating existing lease terms while vacancy conditions are favourable
- securing efficient, smaller footprints in high-traffic areas
- building scalable systems for delivery, takeout, and off-premise dining
Key takeaway:
Sales remain steady. The smartest move right now is to lock in flexible, well-located spaces while demand stays strong.
Sources
- Statistics Canada – Food Services and Drinking Places Sales (Table 21-10-0019-01):
https://www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=2110001901 - Restaurants Canada – Industry Research:
https://www.restaurantscanada.org/industry-research/ - Toronto Regional Real Estate Board (TRREB) – Commercial Market Report:
https://trreb.ca/news/news-releases/