At The Birds & Beets in Vancouver, Matthew Senecal-Junkeer’s establishment transforms from a casual café serving sandwiches and coffee during the day to a wine and small plates venue at night. Senecal-Junkeer has observed a shift in customer spending patterns between daytime and evening hours.
Throughout the day, customers at the café are highly price-conscious, making decisions based on affordability, such as choosing between oat milk and regular dairy or adding avocado to a sandwich. Senecal-Junkeer noted a significant increase in sales of lower-priced menu items during this period, while higher-priced items experienced a decline.
Conversely, in the evening at the wine bar, customers appear less concerned about prices. Although some may opt for smaller wine bottles or skip adding costly items like caviar to their dishes, there is a greater willingness to indulge in luxury experiences without constant price considerations.
The restaurant industry, facing economic challenges, reflects a “K-shaped economy,” as described by Restaurants Canada’s president and CEO, Kelly Higginson. The disparity in spending power is evident, with higher-income individuals maintaining their spending habits on dining out, while lower-income households are compelled to cut back on discretionary expenses.
A recent report from Restaurants Canada highlighted contrasting trends in the industry. Full-service restaurants saw a 4.6% sales growth in January compared to the previous year, while quick-service restaurants experienced a 2% decline. Fine dining establishments witnessed a surge in traffic in 2025, indicating a preference for upscale dining experiences.
Despite the success of fine dining, challenges persist across the industry. Many restaurants reported lower sales and reduced foot traffic, with quick-service establishments facing the brunt of declining profitability. Higginson emphasized the impact of rising fuel costs on restaurant operations and consumer behavior, signaling potential challenges for the entire sector.
Food economist Mike von Massow noted the heightened competition faced by quick-service restaurants, leading to strategic pricing initiatives by major chains to attract customers. Lower-income Canadians, who frequent quick-service venues, may curtail their visits due to financial constraints, influencing the sector’s performance.
Moreover, the decline in quick-service patronage could have broader implications, including job losses, particularly affecting young individuals seeking employment opportunities in the food industry. Von Massow highlighted the shift towards meal planning and cost-conscious behavior among consumers, affecting quick-service dining preferences.
In contrast, fine dining establishments like Pearl Morissette in Ontario continue to thrive, with a growing trend towards high-end dining experiences as a central component of social outings. Chef Daniel Hadida emphasized the appeal of upscale dining as a unique and memorable experience, attracting patrons seeking sophistication and exceptional service.
For Senecal-Junkeer and other restaurant operators, balancing price sensitivity and cost pressures poses challenges in menu pricing decisions. Despite facing increased food costs, Senecal-Junkeer strives to maintain a delicate balance between pricing adjustments and customer satisfaction to sustain business operations effectively.
