Report predicts that Canadians will eat out less in 2024 as a result of increasing food prices

December 28, 2023 TruthUSA

The rising cost of food has many Canadians looking for ways to make their money stretch further in 2024, a new report shows.

The end of year report from the Agri-Food Analytics Lab at Dalhousie University found that 80.3 percent of Canadians expect food prices to rise in 2024—and that will encourage many households to find new ways to save money.

One of the chief ways families will cut back on food spending in 2024 is by eating out less often, according to the report, which is based on a survey of 5,000 adult Canadians.

A total of 38.3 percent of Canadians say they are planning to eat out less often in the coming year while an additional 12.2 percent say they will not eat out at all.

While that increased thriftiness will benefit the pocketbooks of Canadians, it will do little to help an already struggling restaurant industry.

A recent report from Restaurants Canada revealed that more than half of Canadian restaurant owners are either operating at a loss or are barely breaking even.

Thirty-four percent of restaurants were in the red as of March this year compared to 7 percent prior to the COVID-19 pandemic, while 17 percent are only just breaking even compared with 5 percent four years ago. The report, released at the end of October, said only 12 percent of restaurant owners enjoy a double-digit profit margin.

Rising costs across the board are heavily impacting the bottom line of restaurants country-wide, causing owners to raise menu prices at record rates, the report said. The cost of food in particular is forcing menu prices to increase, and restaurants’ own costs are rising even more, forcing owners to walk a fine line of trying to recoup costs while not angering customers.

Canada foodservice industry analyst Vince Sgabellone predicted in the report that the rising menu prices would cause many consumers to make adjustments to their spending at restaurants.

“Lower income consumers will feel the pricing pressures more, and thus will adjust their foodservice spending sooner and more drastically,” Mr. Sgabellone said in the report.

His prediction seems to be right on the money based on the results of the new food spending survey.

The Agri-Food Analytics Lab report indicated that of those who do intend to go out to eat, 39.4 percent will choose budget-friendly restaurants while 24.2 percent will not order side dishes or alcohol to keep the cheque lower. Another 13.7 percent will split meals to reduce costs.

Shopping Habits

Canada’s 2024 Food Price Report, released earlier this month by the lab, predicts that the price of groceries will increase by an average of $701.79 per family of four in the new year. And Canadians are planning to tighten their belts on food spending to compensate.

“Our latest research highlights a growing concern among Canadians about rising food prices and their consequent shift in food consumption habits,” Agri-Food Analytics Lab director Sylvain Charlebois said in the report. “From increasing reliance on promotions and loyalty programs to a heightened focus on food waste reduction, Canadians are adapting in diverse ways to manage their food expenses.”

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