Since the turn of this decade, consumers have been met with rapidly rising costs for goods and services across every sector. Nothing seems to be immune in these tough economic times, and that certainly includes restaurant dining.

Data compiled last year from more than 7,000 hospitality businesses and 43 million transactions indicates that it’s more than just a perception. We really are paying much higher prices at restaurants than ever before.

A report from MOBI, a company specializing in tech solutions for business in the hospitality industry, suggests that Canadian consumers are paying 34 percent more to eat out than they did in 2019.

For example, the cost of the humble burger now averages around $20.

As a result, consumers are pulling back, many forced to recategorize restaurant dining as a luxury. Demand for eating out, the study says, has been decreasing by 10 percent, year over year.

“Menu prices for dining in, takeout, and delivery have all increased by 4.3 percent over the past year, reflecting the ongoing rise in the cost of living and dining out,” the report states. “The MOBI Index data closely aligns with the CPI (Consumer Price Index) from Statistics Canada’s July 2024 report. Hospitality inflation is at 4.8 percent, surpassing the national CPI for all goods of 2.5 percent. Since August 2019, the cost of dining out has surged… leading many consumers to seek more budget-friendly dining options.”1

Jamie Short of Niverville says that the cost of eating out has dramatically changed her perception towards restaurant dining.

“When I dine out, I feel I am now paying more for significantly less quality and customer service than I did ten years ago,” says Short.

Megan Gyles of Ritchot says her family’s eating out frequency hasn’t changed a lot in recent years, but it’s more specifically geared these days towards getting the best value for their dollar.

“If you get a large meal [that’s] filling and really good, it’s worth the money for us,” says Gyles. “For example, I loved to take my daughter out for crepes, but it’s $30 to $40 for us to get one each, and you aren’t even full after. [That’s] not worth the dough for me.”

As well, Gyles has resorted to a more traditional approach to tipping. If the server goes above and beyond and she feels like she’s enjoyed a great dining experience, she considers leaving a tip.

She doesn’t feel guilty, though, for not tipping at all.

Hilary Lungal feels a level of guilt in eating out when there’s a fridge full of expensive groceries at home that she can’t let go to waste.

“It feels wrong to pay for a steak dinner that’s only okay when we can have a bigger portion at home and cook it the way we like for half the price,” Lungal says.

For Andrea Kay, even fast-food dining has become something of the past—almost.

“I can feed my family of four one meal for the price of a Big Mac,” Kay says. “Eating out is a treat for us, otherwise it’s just too expensive to do with any regularity.”

Lyn Belanger says that it’s been a long while since her family dined out. On the odd occasion when they choose to indulge, they are very intentional about where they eat.

“We try to stay away from high-end establishments and frequent local establishments,” says Belanger. “On very special occasions, like an anniversary or milestone birthday, we do [spend more].”

Thankfully, there are small-town eateries, she adds, that still serve great food for a great price.

What’s Behind the Cost Increases

With consumers noticing sharp price increases everywhere from high-end steakhouses to the fast-food burger joints, it’s safe to assume that restaurants are responding to the bane of inflation. This makes sense considering their two primary cost inputs: food and staff wages.

According to the Consumers Council of Canada, the price of almost every grocery item today is markedly higher than it was just four years ago. In some cases, items have more than doubled in price.

Based on Canada’s Food Price Report 2025, it is expected that food prices will continue to climb this year by anywhere between three and five percent.2

Part of this lack of optimism likely stems from the additional costs incurred by the U.S.-imposed tariffs in the past few months.

The cost of wages in recent years has also played a significant role. In 2022, the minimum wage in Manitoba was $11.95 per hour. By October 2025, following a series of hikes, it will reach $16 per hour.

While not all restaurant employees pay the minimum wage for all positions, it’s safe to assume that wages across the board have had to increase in order to maintain an adequate gap.

In a review of the 2025 James Beard Independent Restaurant Industry Report, Forbes writer Stephanie Gravalese says that 91 percent of restaurants have raised their prices to offset the costs of labour and ingredients.

Most of those increases are in the area of five to ten percent. For some, however, a 15 percent hike was still barely enough to allow for any profit margin.3

In order to survive, restauranteurs are needing to get creative. 

“The [James Beard] report found that over 85 percent of independent restaurants experimented with non-traditional revenue models in 2024,” Gravalese writes. “Some are testing prepaid memberships where regulars pay upfront for exclusive perks. Others are shifting to ticketed dining events, pop-ups, and limited-time tasting menus—offering high-value experiences that diners are more willing to spend on.”

Supporting Local

At the end of the day, the best bang for your dining-out buck is probably realized by visiting a local establishment.

Generally speaking, rural restaurants can be more competitive thanks to reduced overhead costs compared to those found in cities.

Spending local also boosts the immediate economy, which benefits everyone. The stronger the commercial industry a community boasts, the greater the property tax benefit for all residents.

Finally, local restaurants play a significant role in giving back to the community in which they serve, whether they’re providing jobs or supporting community fundraising initiatives.

“It’s clear that local businesses benefit from a strong community, therefore the owners tend to be more engaged members of the community themselves,” says Joseph Lustberg for Forbes. “Small businesses donate 250 percent more than large businesses to local nonprofits and community causes, creating a positive cycle of giving back locally.”4