80% of Canadian restaurants raised prices in 2026; half plan more hikes next year

Four out of five Canadian restaurant operators raised menu prices in 2026, and about half are planning to do it again next year, according to a survey of more than 250 foodservice and hospitality operators commissioned by Econolease.

For Montreal diners, the squeeze is real. Residents say they're eating out less, choosing single nice meals over multiple restaurant visits, and second-guessing drinks orders to manage their budgets. "Food is a huge thing in Montreal," one diner said. "I feel like it's such a huge cultural thing for us and anyone who visits always says we have such good food, such good places to go eat and I don't know if it's going to stay the same."

But some local restaurant owners are pushing back on the cycle. Jean-Daniel Nadeau, who runs Brigade Pizzeria, shifted to take-out only and cut prices instead of raising them—betting that volume matters more than check average. "There's just a certain maximum price that you can increase before people stop coming," Nadeau said. "We've been increasing for a few years we've been trying to make it happen and what happened is a backlash and if people stopped going to the restaurants, we're not better off."

Alain Creton, who has been in the restaurant business for more than 50 years and owns Chez Alexandre, introduced a "menu bouillon" with smaller portions at lower prices: main courses under $20 and appetizers under $10. Half of Chez Alexandre's customers have adopted it. "If we pass one or two years having less profit, so what?" Creton said. "I still enjoy the customers and I want to have them all the time. I don't want to keep them away because the price is too high."

Operators planning 2027 hikes cite economic uncertainty, labour shortages, rising wages, declining consumer spending, and potential tariff or supply chain disruptions. Yet 83% of Canadian restaurant operators report feeling optimistic about the year ahead—a sign that despite the headwinds, the industry still sees room to grow. As HOC reported in June, restaurant prices in Montreal have nearly doubled over the past decade.