As economic pressures mount in Canada, dining habits are shifting in response to rising costs and changing consumer preferences. A recent report from Restaurants Canada and Circana LLC, released on May 22, 2025, reveals that Canadians are increasingly turning to coupons, digital deals, and value-driven dining options to stretch their budgets. This trend, driven by cost-of-living concerns, a growing diverse population, and the influence of Gen Z, is reshaping the restaurant industry in Canada and has implications for the United States, where similar economic challenges are influencing consumer behavior. Below, we explore these dining trends, their impact, and what they mean for the restaurant industry on both sides of the border.
The 2025 Hot 10 Restaurant Trends report highlights a significant shift in how Canadians approach dining out. With inflation and rising menu prices, diners are prioritizing value over luxury. According to Vince Sgabellone, an industry analyst at Circana, “Value no longer just means low prices—it’s about maximizing the experience, whether that’s finding the best digital deal, customizing a meal to fit your lifestyle, or choosing a menu item that feels worth it.” This focus on value is evident in the growing popularity of digital coupons, loyalty programs, and affordable menu items like the chicken sandwich, which has emerged as the fastest-growing menu item in Canada.
In Canada, the average check size for dining out has risen to $63 in 2025, up from $56 in 2023, reflecting higher menu prices. Meanwhile, daily dining out has dropped by 50% compared to the previous year, with only 24% of Canadians dining out at least once a week. Takeout and delivery, however, remain strong, with 30% of diners ordering takeout weekly or more. This shift toward off-premise dining aligns with the growing use of digital platforms, as consumers seek convenience and savings through apps and online deals.
One of the standout trends in Canada is the rise of digital couponing. For the first time, digital coupons have surpassed physical coupons, as consumers increasingly turn to social media, retailer apps, and websites like RetailMeNot to find discounts. According to a 2025 coupon statistics report, 59% of consumers use Google to find deals, while 46% visit coupon websites, and 41% rely on retailer apps. In the United States, 35% of shoppers access digital coupons while in-store, and 80% spend less than 20 minutes searching for deals, indicating a preference for quick, accessible savings.
This trend is particularly pronounced among Gen Z, who are driving the digital revolution in dining. Nearly half of Canadian diners (42%) are members of restaurant loyalty programs, up from 29% the previous year. These programs offer discounts, free items, or exclusive deals, making them a key tool for budget-conscious consumers. In the U.S., similar patterns are emerging, with chains like Chipotle and Taco Bell offering National Burrito Day deals on April 3, 2025, to attract cost-sensitive customers through loyalty apps and digital promotions.
Economic factors, including inflation and new trade policies, are contributing to cost concerns in both Canada and the United States. Canada’s annual inflation rate eased to 1.7% in April 2025, but rising food prices continue to strain household budgets. In the U.S., fast food prices have surged, with a quarter pounder with cheese meal at McDonald’s jumping from $5.39 in 2014 to $12 in 2024. Economists point to factors like bird flu, which has driven up egg prices, and new U.S. tariffs on Canadian and Mexican goods, which took effect on March 4, 2025. These tariffs, including a 25% duty on non-USMCA-compliant imports, are expected to further increase prices at grocery stores and restaurants.
For example, Loblaw, a major Canadian grocer, has warned that prices for tariff-affected items will rise as pre-trade war inventory depletes. Walmart in the U.S. has already increased prices due to higher costs from tariffs. These economic pressures are pushing consumers in both countries to seek out deals and prioritize affordable dining options, such as fast food, which has seen a 17% increase in popularity in Canada.
The chicken sandwich has emerged as a star in Canada’s dining scene, reflecting a broader trend toward affordable, customizable menu items. Its popularity is driven by its versatility and perceived value, appealing to a wide range of diners. Meanwhile, Canada’s growing diversity is shaping dining preferences. By 2041, the share of Canadians who are people of color is expected to nearly double, influencing restaurant menus. For instance, 48% of South Asian diners and 32% of Latin American diners prioritize plant-based dishes, compared to just 21% of white diners. This shift is prompting restaurants to offer more diverse and customizable options to cater to varied tastes.
In the U.S., similar trends are evident. Fast food chains like Popeyes and Taco Bell have seen significant price increases, but their focus on value-driven promotions, such as digital deals and loyalty rewards, helps retain customers. The emphasis on plant-based and customizable options is also growing in the U.S., particularly among younger and more diverse demographics, mirroring Canada’s evolving dining landscape.
Restaurants in both countries face the challenge of balancing rising costs with consumer demand for value. In Canada, the plateau in dining demand highlights the need for restaurants to adapt to cost-conscious behaviors. TouchBistro’s 2025 Canadian Diner Trends Report notes that Canadian diners are more cautious than their American counterparts, who have increased dining out and takeout frequency. To attract customers, restaurants are investing in digital platforms, offering loyalty programs, and promoting affordable menu items.
In the U.S., restaurants are navigating similar challenges. The dominance of delivery apps and takeout services, coupled with consumer concerns about online fraud, underscores the importance of secure digital transactions. Restaurants that prioritize user-friendly apps, robust security measures, and attractive digital deals are better positioned to build customer loyalty. For example, Costco’s monthly coupon book and National Burrito Day promotions demonstrate how retailers and restaurants use discounts to drive traffic and sales.
As cost concerns continue to shape dining habits, restaurants in Canada and the U.S. must stay ahead of the curve. The rise of digital couponing and loyalty programs reflects a broader shift toward technology-driven dining experiences. Gen Z’s influence, combined with increasing diversity, is pushing restaurants to offer personalized, affordable, and convenient options. At the same time, economic factors like tariffs and inflation will likely keep prices high, making value-driven strategies essential.
For diners, this means more opportunities to save through digital deals and loyalty programs, but also the challenge of navigating rising costs. For restaurants, success will depend on understanding these trends and adapting to meet consumer expectations. As Sgabellone notes, “In today’s competitive restaurant landscape, it’s more important than ever that restaurants understand these emerging trends and shifting consumer preferences.”
Canada’s dining trends offer a glimpse into the future of the restaurant industry in North America. With coupons and digital deals at the forefront, consumers are finding creative ways to enjoy dining out while managing budgets. As economic pressures and diverse preferences continue to shape the market, restaurants in both Canada and the U.S. will need to innovate to stay competitive. By embracing digital platforms, offering value-driven menu items, and catering to diverse tastes, the industry can thrive in this cost-conscious era.
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