At The Birds & Beets in Vancouver, Matthew Senecal-Junkeer operates a cafe-restaurant that shifts from serving sandwiches and coffee during the day to offering wine and small plates at night. Senecal-Junkeer has observed a change in his customers’ spending habits throughout the day. Customers tend to be more price-conscious during cafe hours, making choices based on cost, such as opting for oat milk over regular dairy or adding avocado to a sandwich. This has led to increased sales of lower-priced menu items during the day, with a decline in sales of higher-priced items.
In contrast, at night, customers at the wine bar show less price sensitivity. While some may choose a smaller bottle or forego adding expensive items like caviar to their appetizers, there is generally less hesitation in purchasing high-ticket menu items. Senecal-Junkeer describes the evening experience as a luxury where customers are less concerned about minor expenses.
A recent report from Restaurants Canada highlights the impact of rising costs on both restaurants and consumers. Full-service restaurants saw a 4.6% growth in real sales in January compared to the previous year, while quick-service restaurants experienced a 2% decline. Fine dining establishments witnessed the largest increase in traffic in 2025, indicating a stronger performance in the upscale dining segment.
Despite the growth in fine dining, the restaurant industry as a whole faces challenges. Many restaurants reported lower total sales and decreased foot traffic, with quick-service restaurants particularly affected. Rising fuel costs are expected to further impact restaurant expenses and consumer behavior, with quick-service establishments serving as an early indicator of broader industry challenges.
Food economist Mike von Massow notes that quick-service restaurants are facing intensified competition and consumer cutbacks, especially among lower-income groups. With large chains offering value meals and discounts to attract customers, quick-service establishments are particularly vulnerable to shifts in consumer spending habits. This trend could potentially lead to job losses, particularly affecting young workers who often start their careers in fast-food settings.
While quick-service restaurants grapple with these challenges, fine dining establishments like Pearl Morissette in St. Catharines, Ontario, continue to thrive. Chef Daniel Hadida notes a growing trend where high-end dining is viewed as a complete evening experience rather than a mere part of an outing. Despite high demand, Hadida has kept menu prices stable to accommodate diners, many of whom travel long distances to experience the restaurant’s offerings.
For Senecal-Junkeer at The Birds & Beets, balancing customer price sensitivity with rising costs presents a dilemma. Despite facing increased food expenses, he is cautious about raising menu prices significantly to maintain customer satisfaction and volume. The decision between profitability and customer affordability remains a challenging aspect of managing the restaurant’s operations.