Toronto, Feb. 06, 2025 (GLOBE NEWSWIRE) -- Foodservice sales are forecast to grow by 3.7% in the first quarter of 2025, thanks to a significant boost from the GST and HST holiday, but restaurants are still facing economic headwinds after a weak third quarter, according to Restaurants Canada's latest Quarterly Report.
Quarterly Report at a glance:
- Restaurant, caterer and bar sales are forecast to surpass $100B in 2025, representing a 3.9% nominal increase over 2024. Adjusted for menu inflation, real sales are forecast to grow by 0.8% compared to relatively flat real sales in 2024.
- Caterers are expected to see the strongest growth in 2025 at 4.3%, followed by quick-service restaurants (4.0%), full-service restaurants (3.8%) and drinking places (1.5%).
- More than a third of Canadians (36%) are going out to eat less frequently. Gen X report the largest reduction in visits to full-service restaurants (41%), while Gen Z are most likely to cut back on quick-service restaurants (42%).
- Menu inflation continued to moderate in the last half of 2024, with November menu prices being 3.4% higher compared to November 2023.
- Restaurants Canada estimates foodservice sales could be $1.5B higher over the GST/HST holiday period than they would have been if there was no tax holiday.
- This issue of the Quarterly also starts to examine how significant changes to immigration and tariff threats will affect the restaurant industry and the economy, how foodservice businesses are responding to a rise in crime, and strategies consumers are employing to make dining out more affordable.
"2024 was a very difficult year for the restaurant industry, and our forecasting tells us that we are not out of the woods yet. Restaurants face significant threats, including drastic cuts to immigration amid a very tight labour market in much of the country outside of urban centres, a tariff dispute with the U.S. and continued low consumer confidence.”
"We are calling on governments to permanently remove sales taxes from restaurant meals. Early data about the GST and HST holiday give us some hope for a stronger start in 2025. Restaurants are the fourth largest employer in the country with nearly 1.2 million workers, they support local economies and initiatives in every community across Canada, and they improve the day-to-day quality of life of Canadians. Restoring food tax fairness is a win for all.”
About Restaurants Canada
Restaurants Canada is a national, not-for-profit association advancing Canada's diverse and dynamic foodservice industry. Restaurants are a $120 billion industry employing nearly 1.2 million Canadians and is the number one source of first-time jobs in Canada.
CONTACT: Milena Stanoeva
Restaurants Canada
6479211758
