Canada’s restaurant industry on the brink? 4,000 closures predicted in 2026 amid soaring costs and shrinking consumer spending

Canada's restaurant sector is bracing for significant closures. Analysts predict thousands of eateries may shut down in 2026, following a tough 2025. Soaring food prices, inflation, and operational costs are major challenges. Canadians are spending less on dining out due to affordability issues and changing habits. Restaurants Canada advocates for removing GST on food to ease the burden on consumers.