A café-restaurant in Vancouver, The Birds & Beets, managed by Matthew Senecal-Junkeer, shifts its offerings from sandwiches and coffee during the day to wine and small plates in the evening. Senecal-Junkeer has observed a change in customer behavior regarding pricing between day and night operations.
Customers at the café are price-conscious, carefully selecting between options like oat milk or regular dairy and adding extras like avocado based on cost. Senecal-Junkeer noticed a trend towards lower-priced menu items being more popular during café hours, with a significant increase in sales, while pricier items experienced a decline.
Conversely, in the evening at the wine bar, customers seem less concerned about price when opting for premium menu items like caviar, valuing the luxury experience without focusing on cost details. This shift reflects a broader trend in the restaurant industry, where lower-income households are cutting back on discretionary spending due to economic instability.
A recent report by Restaurants Canada highlighted the impact of rising costs on restaurants and consumers. Full-service restaurants saw a 4.6% growth in sales in January compared to the previous year, while quick-service restaurants experienced a 2% decline. Fine dining establishments witnessed the most significant increase in traffic in 2025.
Despite the growth in fine dining, many restaurants, both full-service and quick-service, are facing challenges. A large percentage reported lower sales, decreased profitability, and declining guest numbers. The rising cost of fuel is expected to continue affecting restaurant costs and consumer behavior, with quick-service restaurants serving as an indicator for broader industry trends.
Food economist Mike von Massow noted that quick-service restaurants are facing increased competition, especially as consumers seek value deals amid financial constraints. Lower-income individuals, who frequent these establishments more often, are likely to cut back on dining out due to cost pressures.
The potential decline in quick-service patronage could impact job opportunities, particularly for young individuals who often find employment in fast-food establishments. Additionally, competition from grocery stores and changing consumer habits may further affect quick-service sales.
On the other hand, fine dining establishments like Pearl Morissette are thriving, with high-end dining becoming a sought-after experience for patrons. Chef Daniel Hadida emphasized the shift towards viewing fine dining as a complete evening event, with reservations at the two Michelin star restaurant in high demand.
Despite cost pressures, restaurants like The Birds & Beets are grappling with the decision to raise menu prices to offset increased food costs while maintaining customer satisfaction. Senecal-Junkeer faces the dilemma of balancing volume and margin amidst rising expenses in the food industry.
