Quick-service restaurants face bigger sales drop as Canadians cut back

Quickservice restaurants in Canada are seeing a sharper slowdown than higherend dining as households feel pressure from the cost of living, according to a Restaurants Canada report released this week. The report, based on a March survey of 300 members, found that 81% of quickservice restaurant respondents said profitability was declining, compared with 70% of fullservice restaurants. Real sales at fullservice restaurants rose 4.6% in January from a year earlier, while quickservice sales fell 2%. Restaurant operators said customers are becoming more pricesensitive, especially at lower price points, and some are shifting spending toward grocery stores or cutting back on discretionary purchases. Industry leaders also said higher fuel and food costs are adding pressure, and that the effects could continue to weigh on the broader restaurant sector.