Canadian fast food chains create value menus to win back customers
Canada’s restaurant industry is in a slump as money conscious consumers are eating out less and spending less when they do go out.
“We absolutely are seeing people come to restaurants less and the spend per visitor is down,” said Kris Barnier, vice president of central Canada with Restaurants Canada.
Barnier said inflation, higher interest rates and housing costs have been putting the squeeze on consumers and restaurants are no different.
Barnier said that many businesses are facing financial pressures due to hikes in their operating costs of 20 to 30 per cent.
Restaurants are dealing with the high cost of food, wages, rents and insurance and Barnier said that’s making it harder to keep menu prices low.
“We are at 47 per cent of restaurants across Canada that say they we are not making money and in fact we are losing money," said Barnier.
Givex Canada, which works with companies to engage customers, said there is currently a value meal war taking place with burger chains, sub shops and taco restaurants creating lower prices on some items.
“What we are seeing with these quick service brands is a lot of value meals, and value meal wars to entice customers to come through the door,” said Mo Chaar, chief commercial officer with Givex Canada.
Chaar also said that Quick Service Restaurants (QSR) are creating dollar coffees, loyalty programs and value boxes that can go further feeding a family.
Many of the people CTV News Toronto stopped outside fast food restaurants in Scarborough said they are eating fewer fast food meals due to higher prices.
“Ever since COVID prices have literally doubled,” said one man, while another added, “You can't afford to eat out every day these days."
A man eating his lunch in his truck on a break from work said, “ A burger combo used to be $7 or $8, but now it’s like $15 or $16.”
Another man said he always looks for deals and if he doesn’t find one he eats at home.
“To be honest I try to go when there are coupons, but if there are no coupons I try to avoid it in general,” said the man.
Some value items are limited time deals, but others could be around to stay as chains try to find new ways to draw more foot traffic into their restaurants.
Restaurants feel that tax changes could help their industry as meals under $4 are free of the provincial sales tax in Ontario, but Barnier said that raising the tax break to a higher amount could make modest meals more affordable.
CTVNews.ca Top Stories
Polls close for closely watched byelections in Montreal and Winnipeg
The NDP has a slight early lead in Winnipeg while remaining in a three-way race with the Liberals and the Bloc Québécois in Montreal as ballots continue to be counted in two crucial federal byelections.
GoFundMe cancels fundraiser for Ontario woman charged with spraying neighbour with a water gun
A Simcoe, Ont., woman charged with assault with a weapon after accidentally spraying her neighbour with a water gun says GoFundMe has now pulled the plug on her online fundraiser.
Freeland says she is 'not going anywhere' after Conservatives call her 'phantom finance minister'
Deputy Prime Minister Chrystia Freeland declared she is 'not going anywhere' when pushed by the Conservatives on Monday about her future as finance minister.
Suspect in apparent assassination attempt on Trump was near golf course for 12 hours
The man suspected in an apparent assassination attempt targeting Donald Trump camped outside a golf course with food and a rifle for nearly 12 hours.
Body recovered from B.C. lake after unclothed man leads investigators to crash site
Mounties are investigating a fatal crash north of Whistler, B.C., after an unclothed man who was found along the side of the road led police to a pickup truck submerged in a lake with one occupant still inside.
'Never seen anything like this': Humpback whale catches unsuspecting seal off Vancouver Island
A Vancouver Island nature photographer says he has never seen anything like what his camera captured on a recent whale-watching excursion off Victoria.
'Not that simple': Trump drags Canadian river into California's water problems
Republican presidential nominee Donald Trump promised "more water than you ever saw" to Californians, partly by tapping resources from a Canadian river.
Mortgage loan rules are changing in Canada
Finance Minister Chrystia Freeland has announced changes to mortgage rules she says are aimed at helping more Canadians to purchase their first home.
First teen sentenced in Kenneth Lee case gets 15 months probation
The first teenager to be sentenced in the death of a Toronto homeless man will not face further time in custody, and instead participate in a community-based program.