More Than One-Third of Canadian Restaurants Operating at a Loss as Costs Rise

Patrons dine on a patio on King Street in Toronto on Sept. 28, 2021. A new report says restaurants are ushering in higher prices, shorter menus, smaller portion sizes, and reduced hours in a bid to survive inflation and labour shortages. The Canadian Press/Evan Buhler

More than half of Canadian restaurant owners are either operating at a loss or are barely breaking even, a new report from Restaurants Canada reveals.

Thirty-four percent of restaurants were in the red as of March of this year compared to seven percent prior to the COVID-19 pandemic, while 17 percent are only just breaking even compared with five percent four years ago, the report says. Only 12 percent of restaurant owners enjoy a double-digit profit margin.