At The Birds & Beets in Vancouver, Matthew Senecal-Junkeer’s cafe transforms from a casual daytime spot for sandwiches and coffee to an evening venue offering wine and small plates. Senecal-Junkeer has observed a shift in customer spending habits between day and night. During the day, customers are more price-conscious, opting for cheaper menu items and being mindful of extras like oat milk and avocado. However, in the evening, customers seem more inclined to indulge in higher-priced menu items without much hesitation, creating a more luxury-driven experience.
The restaurant industry is facing challenges, with quick-service establishments feeling a more significant impact than upscale restaurants. This trend reflects a “K-shaped economy,” where wealthier individuals can still afford fine dining experiences, while lower-income households are cutting back on discretionary spending due to economic instability. Restaurants Canada President Kelly Higginson highlights the disproportionate impact on low-income households, leading to a decline in overall sales and profitability for many restaurants.
A recent report from Restaurants Canada reveals contrasting trends between full-service and quick-service restaurants. Full-service establishments have seen modest sales growth, particularly in fine dining, while quick-service restaurants have experienced declining sales. Rising costs, including fuel prices, are expected to continue affecting both restaurants and consumer behavior, with quick-service restaurants serving as a barometer for the broader industry challenges.
Food economist Mike von Massow notes the competitive pressures on quick-service restaurants, exacerbated by value meal offerings from large chains to attract customers during tough economic times. Lower-income individuals, who frequent quick-service restaurants more frequently, are likely to cut back on dining out due to cost pressures. This shift in consumer behavior could impact job opportunities, especially for young workers who often start in the fast-food sector.
Despite these challenges, fine dining establishments like Pearl Morissette are thriving, with high-end dining experiences becoming a sought-after occasion for customers. Chef Daniel Hadida emphasizes the growing demand for upscale dining as a complete evening experience. The restaurant’s popularity is evident, with reservations booked months in advance, underscoring the enduring appeal of fine dining amid economic uncertainties. Senecal-Junkeer, facing similar price sensitivity among customers, grapples with the decision of whether to adjust menu prices to balance volume and margins amidst rising food costs.
