Canadian fast food chains create value menus to win back customers

Canada’s restaurant industry is in a slump as money conscious consumers are eating out less and spending less when they do go out.

Canada’s restaurant industry is in a slump as money conscious consumers are eating out less and spending less when they do go out.

“We absolutely are seeing people come to restaurants less and the spend per visitor is down,” said Kris Barnier, vice president of central Canada with Restaurants Canada.

Barnier said inflation, higher interest rates and housing costs have been putting the squeeze on consumers and restaurants are no different.

Barnier said that many businesses are facing financial pressures due to hikes in their operating costs of 20 to 30 per cent.

Restaurants are dealing with the high cost of food, wages, rents and insurance and Barnier said that’s making it harder to keep menu prices low.

“We are at 47 per cent of restaurants across Canada that say they we are not making money and in fact we are losing money" said Barnier.

Givex Canada which works with companies to engage customers said there is currently a value meal war taking place with burger chains, sub shops and taco restaurants creating lower prices on some items.