Report finds 7,000 Canadian restaurants closed last year amid rising costs, softening demand and declining alcohol sales - News Summed Up

Report finds 7,000 Canadian restaurants closed last year amid rising costs, softening demand and declining alcohol sales


Already a notoriously tough industry, Canadian restaurants are expected to be under pressure in 2026. It is that the sector has been operating in a prolonged state of economic stress since 2021,” according to the report. Supports such as pandemic wage subsidies and rent relief prevented immediate closures, but restaurants now face a new set of pressures related to the state of the economy. Advertisement AdvertisementAdvertisement AdvertisementThe report notes that alcohol sales have historically been one of the most profitable parts of a restaurant’s business — but no longer. Canadians are drinking less beer, wine and spirits in response to rising prices, health considerations and shifting social norms.


Source: National Post January 13, 2026 12:49 UTC



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