Trudeau Inflation Killing Canada’s Fast Food Restaurants

Fast food restaurant industry in Canada is struggling as budget-conscious consumers eat out less and spend less when they do. Many Canadians say high taxes and Trudeau inflation make it impossible for them to eat out.

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

According to Barnier, inflation, higher interest rates, and rising housing expenses created by the Liberal government have all put pressure on consumers, including restaurants. He says many businesses are suffering financial constraints as running costs rise by up to 47 percent.

Fast Food Restaurants in Canada are battling with increased food, wage, rent, and insurance costs, which Barnier says is making it difficult to keep menu pricing reasonable.

“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,” pointed out Barnier.

Fast Food Restaurant Loyalty Programs

Givex Corp Canada, which works with businesses to engage customers, stated that there is presently a value meal battle going on, with burger chains, sub shops, and taco eateries offering cheaper prices on certain products.

“What we are seeing with these quick service brands is a lot of value meals, and value meal wars to entice customers to come through the door,” said Mo Chaar, chief commercial officer of Givex Canada. They also stated that Fast Food Restaurants (QSR) are developing dollar coffees, loyalty programs, and value boxes that can help feed a family.

Many of the people interviewed by CTV News in Toronto claim they are consuming fewer fast food meals owing to rising prices and many blame it on Trudeau.  “Ever since COVID prices have literally doubled,” claimed one man, while another added, “You can’t afford to eat out every day these days.”

A man enjoying his lunch in his vehicle on a break from work stated, “A burger combo used to be $7 or $8, but now it’s like $15 or $16.”
Another man stated that he always hunts for deals and that if he cannot find one, he eats at home.

“To be honest I try to go when there are coupons, but if there are no coupons I try to avoid it in general,” according to the individual.

Some value goods are limited-time discounts, but others may be here to stay as businesses seek new methods to increase foot traffic in their restaurants.

Restaurants Canada believe that tax reforms might benefit their industry because meals under $4 are exempt from the provincial sales tax in Ontario, but Barnier believes that increasing the tax break to a greater sum could make modest meals more inexpensive.

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