80% of Canadian restaurants raised prices in past year; Ontario poised for next round

Eight in ten Canadian restaurant and hospitality operators raised menu prices in the past 12 months, according to the inaugural Hospitality Operator Report from EconoLease and Leger surveying 250 operators nationwide. Half plan to raise them again in the next year.

Operators cited food and beverage costs as the biggest pressure, with 64% reporting increases, followed by labour and wages at 55%, and rent and occupancy at 32%. A quarter reported rising equipment maintenance and repair costs. Two-fifths estimated overall costs climbed 5–10% in the past year; 38% saw 11–20% increases.

Despite the price hikes, profit margins improved for only 42% of operators in the past 12 months — with just 33% reporting even a slight improvement. A quarter said margins stayed flat, and 27% reported margins declined.

The West region (B.C., Alberta, Manitoba, Saskatchewan) led in price increases already implemented. Ontario operators, however, have held prices relatively steady but are preparing to raise them in the coming 12 months — a reversal in timing compared to western peers. Labour pressure was notably higher in Canada at 55% of respondents versus 35% in the U.S.; Canadian operators also raised prices more aggressively (80% versus 68%).

Looking ahead, fast-casual restaurants flagged rising food and beverage costs as the biggest threat, while full-service casual dining operators cited labour shortages and declining consumer spending. The gap between price hikes and profit gains suggests operators are trying to absorb costs rather than pass them fully to diners — a squeeze that may not hold if pressures persist.