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
LIVE UPDATES Tracking Hurricane Milton: Millions told to evacuate from worst storm 'in 100 years to hit Florida'
U.S. forecasters are warning of destructive waves, devastating winds and flash floods through the week as Hurricane Milton makes its way from the Yucatan Peninsula toward Florida.
Meteorologist becomes emotional giving update on Hurricane Milton
A seasoned American meteorologist became emotional on air as he gave an update on a major hurricane, later suggesting the reason behind his strong reaction.
'I hope so': Marc Garneau on whether Liberal party still has room for Blue Liberals
Former cabinet minister Marc Garneau, who describes himself in his new book as always-a-Liberal, 'but a decidedly blue one,' says he hopes the party still has room for someone like him.
'Very' serious issue: federal transport minister on contamination in northern Alberta town
The renewed pleas of people in Fort Chipewyan, Alta. for government to take action cleaning up contamination in their community have reached the ears of federal Transport Minister Anita Anand.
'Extremely disappointed': Family of homicide victim storms out of courtroom as judge reads decision
Emotions boiled over after a judge acquitted two out of three defendants in a manslaughter case, while the third accused has since died.
WeightWatchers to offer compounded version of Wegovy weight-loss drug
WeightWatchers said on Tuesday it would offer a compounded version of Novo Nordisk's popular obesity drug Wegovy as part of its weight-management programs.
'I find it really disheartening': Family calls out police after Ottawa senior robbed in parking lot
On September 11, 80-year-old Madeleine Gervais was robbed in Ottawa's west end. It happened in the Loblaws parking lot in College Square, when she was approached by a man and a woman who insisted to help her load her groceries into her car.
opinion Tom Mulcair: Conservatives continue to attack Trudeau's potential successors
In his column for CTVNews.ca, former NDP leader Tom Mulcair argues that the dramatic side to Conservative Leader Pierre Poilievre, and his tendency to 'play everything to the hilt,' could well become his undoing.
One American physician's long journey to becoming a family doctor in Canada
An American family doctor is frustrated with what she says has been a challenging two-year-and-counting bureaucratic journey to be accepted into Canada.