10 Things You Should Know About Canada's Restaurant Industry

Canada's restaurant industry is a vibrant and vital part of the nation's cultural and economic landscape. From bustling metropolitan areas to small towns, restaurants serve as community hubs, social spaces, and a source of livelihood for millions. The industry reflects the country's rich culinary diversity and plays a significant role in driving the economy, generating billions of dollars in revenue each year. In recent years, however, the sector has faced considerable challenges, particularly during the COVID-19 pandemic, which forced businesses to innovate and adapt to a rapidly changing environment.

Today, Canada's dining scene is more dynamic than ever, shaped by shifting consumer preferences, technological advancements, and an increased focus on sustainability and health. Whether you're a restaurateur, food lover, or someone interested in the evolving trends in Canadian dining, understanding the forces at play in this industry is key. From the rise of plant-based dining to the boom of ghost kitchens, here are 10 essential things you should know about Canada's restaurant industry.

1. Economic Powerhouse

Canada’s restaurant industry contributes significantly to the economy, generating over $90 billion annually. With more than 90,000 restaurants across the country, the industry employs over 1.2 million people, making it one of the largest private-sector employers in the nation.

2. Impact of the Pandemic

The COVID-19 pandemic heavily impacted the industry, with more than 10,000 restaurants closing permanently. However, the industry has shown remarkable resilience, with many restaurants adapting through takeout, delivery services, and digital platforms.

3. Diverse Culinary Landscape

Canada’s multiculturalism is vividly reflected in its restaurant scene. From authentic Indian, Italian, and Chinese cuisine to Middle Eastern cuisine, restaurants in Canada offer a global dining experience, particularly in cities like Toronto, Vancouver, and Montreal, which are renowned for their diverse culinary options.

4. The Rise of Plant-Based Dining

Canada is experiencing a surge in plant-based diets, with an increasing number of consumers opting for vegan or vegetarian meals. Restaurants like Fresh and chains like A&W have expanded their plant-based menus, appealing to eco-conscious diners and health enthusiasts alike.

5. Sustainability is a Key Focus

With climate change concerns growing, many Canadian restaurants are prioritizing sustainability. Farm-to-table movements reduced food waste initiatives, and sourcing local, organic ingredients is becoming more common. This shift aligns with the increasing consumer demand for environmentally friendly dining options.

6. Labor Shortages Continue

The restaurant industry has been grappling with labor shortages, especially after the pandemic. Recruiting and retaining staff is a significant challenge for restaurant owners, with many workers leaving the industry searching for more stable and higher-paying roles. This has led to an increase in wages and benefits to attract talent.

7. Technological Innovations

Technology has transformed how restaurants operate, from online ordering and delivery apps like Uber Eats and DoorDash to QR code menus and contactless payment systems. These innovations have not only improved efficiency but also reshaped customers' dining experiences.

8. Boom in Ghost Kitchens

Ghost kitchens—restaurants without a physical dining space that operate solely through online delivery—are on the rise. These virtual kitchens have become especially popular during the pandemic, allowing businesses to lower overhead costs and focus on delivery services. This trend is expected to grow in urban centers. 

9. Health and Safety Prioritized

Since the pandemic, health and safety measures have become a top priority for restaurants. Enhanced cleaning protocols, social distancing, and the implementation of touchless systems are now standard. Many restaurants have also invested in outdoor patios and expanded seating areas to adapt to these new demands.

10. A Passionate Dining Culture

Canadians are passionate about food. Whether they’re enjoying poutine in Quebec, seafood on the East Coast, or trying the latest culinary trends in cosmopolitan cities, dining out remains a beloved part of Canadian culture. Food festivals, like Toronto’s Winterlicious and Vancouver’s Dine Out, celebrate this love for good food and bring communities together.

Canada’s restaurant industry is dynamic and ever-evolving, with challenges and opportunities shaping its future. Whether you're a food enthusiast or a business owner, understanding these key trends will give you deeper insight into one of the country's most important industries.