Key Takeaways
- Canadian food-service sales rose 0.3% in August to $8.9 billion, extending a national growth streak to eight months.
- Bars were the only food-service category with lower August sales, falling 0.6%, while restaurants and takeout posted modest gains.
- Higher prices contributed to spending growth: restaurant food and licensed alcohol prices were each 3.1% higher year over year.
Canadians Keep Eating Out — Even as the Bills Get Bigger
It's Friday night. The restaurant is buzzing, tables are filling up, and the bill at the end of dinner is a little harder to swallow than it used to be.
But Canadians aren't giving up their restaurant habit.
In August, restaurant, café and bar sales climbed for the eighth straight month, reaching $8.9 billion, according to Statistics Canada.
Sales rose 0.3%, from $8,905.7 million in July to $8,928.9 million in August.
Compared with August 2025, Canadians spent 6.1% more at food services and drinking places.
But there's a twist hiding behind those growing numbers.
Not every business is celebrating.
Restaurants Are Winning. Bars? Not So Much.
Imagine two businesses on the same street.
One is a sit-down restaurant. The other is a bar.
Both are serving customers, but their August sales figures tell different stories.
Here's how Canada's food-service businesses performed:
- Special food services, including caterers and food contractors: up 0.4%
- Full-service restaurants: up 0.3%, delivering the biggest increase in dollar terms
- Limited-service eating places, including fast-food and takeout counters: up 0.2%
- Drinking places (bars): down 0.6%
Bars were the only category to record a decline.
So while Canadians continued spending more at restaurants and takeout counters, drinking establishments moved in the opposite direction.
Eight months of national growth doesn't mean every business is sharing the good news.
Only Four Provinces Saw Sales Rise
Canada's restaurant industry might be growing nationally, but the provincial picture tells a different story.
Only four provinces recorded higher sales in August:
- British Columbia: +0.6%
- Ontario: +0.4%
- Alberta: +0.3%
- Quebec: +0.2%
The biggest declines came from:
- Nova Scotia: −0.8%
- Saskatchewan: −0.7%
Here's what makes that interesting.
Most provinces didn't record an increase, yet Canada's national sales still climbed.
Why?
Because the four provinces reporting growth include the country's largest markets. Their gains were enough to push the national total higher despite declines elsewhere.
The national headline looks strong. The provincial picture is considerably more mixed.
Here's the Catch: Eating Out Costs More
That restaurant bill that feels bigger than last year?
The numbers back it up.
In August, prices for food purchased from restaurants were 3.1% higher than a year earlier.
Alcoholic beverages served in licensed establishments also cost 3.1% more year over year.
And that changes how we should read the sales figures.
When restaurant sales rise 6.1% over a year, it doesn't automatically mean 6.1% more meals were sold or that restaurants welcomed more customers.
Part of the increase reflects higher prices.
Think about it this way: a restaurant can collect more money even if it serves the same number of meals, simply because those meals cost more.
That's why rising sales are not necessarily proof that Canadians are eating out more frequently.
They're proof that more money is being spent.
Eight Months of Growth — But Is the Momentum as Strong as It Looks?
Eight consecutive monthly increases are certainly noteworthy.
Yet look beneath the national total and three details stand out.
Restaurants and takeout businesses posted modest gains, while bars slipped.
Only four provinces recorded sales growth.
And higher menu prices contributed to the increase in spending compared with a year earlier.
Canada's food-service industry is still generating more revenue, but that doesn't mean every restaurant, bar or province is enjoying the same momentum.
The Twikup Take
Canadians are spending more money at restaurants, cafés and bars than they were a year ago, and national sales have now risen for eight consecutive months.
But don't confuse a bigger restaurant bill with a busier restaurant.
With bars recording declining sales, most provinces missing out on monthly growth, and restaurant prices rising 3.1% year over year, the headline deserves a closer look.
Canada's restaurant industry keeps bringing in more money — but higher sales don't always mean more customers or more meals.
Image: AI-generated illustration.