At The Birds & Beets in Vancouver, Matthew Senecal-Junkeer operates a cafe-restaurant that shifts from serving sandwiches and coffee during the day to offering wine and small plates at night. Senecal-Junkeer has observed a change in his customers’ price sensitivity between daytime and nighttime visits.
Customers are more price-conscious during café hours, carefully considering choices like oat milk versus regular dairy and adding avocado to a sandwich based on cost. Senecal-Junkeer noted a shift towards lower-priced menu items selling more during the day, with higher-priced items experiencing a decline in sales.
Conversely, at night, customers at the wine bar show less hesitation in opting for more expensive menu items, indicating a preference for a luxury experience without worrying about costs as much.
According to a report from Restaurants Canada, the restaurant industry is experiencing a “K-shaped economy,” where those with higher incomes continue to spend on dining out, while lower-income households are cutting back on discretionary spending due to economic instability.
The report revealed that full-service restaurants saw a 4.6% sales increase in January compared to the previous year, whereas quick-service restaurants experienced a two percent decline. Fine dining establishments witnessed the most significant growth in traffic in 2025.
Despite the growth in fine dining, the report highlighted challenges faced by the restaurant industry, with nearly half of all restaurants reporting lower total sales and reduced foot traffic. Quick-service restaurants particularly struggled, with 81% reporting declining profitability.
Rising costs, including fuel prices, are impacting both restaurants and consumer habits. Quick-service restaurants, facing increased competition from grocery stores, are more vulnerable to consumer cutbacks, especially among lower-income groups.
Chef Daniel Hadida of Pearl Morissette, ranked as Canada’s top restaurant, noted a trend towards high-end dining as a complete evening experience. Fine dining establishments like his are thriving, with reservations booked months in advance, despite challenges in maintaining fair prices for customers.
Matthew Senecal-Junkeer at The Birds & Beets faces the dilemma of balancing rising food costs with customer price sensitivity, striving to maintain margins while keeping menu prices reasonable without compromising quality.