Over one-third of Ontario restaurants say less consumer spending top threat to biz

October 9, 2026 · Toronto Sun

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As Thanksgiving weekend descends – presenting an opportunity to eat out – a new report says just over one-third, or 38%, of Ontario restaurants say declining consumer spending is a top threat to their business.

The 2026 Hospitality Operator Report by EconoLease says another 56% identify rising food and beverage costs as a top business threat over the next year while the typical hospitality operator reported a median overall cost increase of 7.5% over the past year.

Needless to say a spokesperson for EconoLease, a Canadian hospitality equipment financing company, is encouraging folks take advantage of the long weekend by eating out at some point.

Get out there and eat your turkey!

“We have a three-day opportunity for restaurateurs to open up on Saturday, Sunday and potentially Monday too, so there’s opportunities there,” Executive Vice President of Growth at EconoLease Wayne Jackson said.

“Whether it’s family brunches, or Thanksgiving lunches or even take-out. There’s a bunch of opportunities beyond the typical 7 p.m. reservation there. Changing cultural dynamics and traditions and family dynamics, you have blended families, all kinds of different things going on, you’re also seeing group eating increasing significantly, so the traditional Canadian Thanksgiving set up is evolving.”

Locally, the report says top threats Toronto operators cite over the next 12 months are rising food and beverage costs (52%), economic uncertainty or recession risk (47%), labour shortages or rising wages (34%), declining consumer spending (31%), and tariffs or supply chain disruptions (17%).

Operating costs continue to climb: over the past 12 months, the steepest increases were in food and beverage costs (67%), labour and wages (55%), and rent and occupancy (29%).

In Ontario, only 63% said food and beverage costs are creating greater pressure while labour and wages are roughly in line (54%).

Jackson said group restaurant bookings were up 28% year over year, which creates its own challenges.

“You’re perhaps set up with a romantic two-table, and now you’re seeing larger groups and not necessarily traditional groups,” he said.

“You’re seeing bench tables and communal tables and things like that for larger groups of friends and blended families. It’s an opportunity.”

74% of Toronto restaurateurs optimistic

The report found that 43% of Toronto operators say their profit margins improved over the past year, compared to 46% in Ontario, while 24% report a decline.

Despite the pressure, 74% of Toronto operators feel optimistic about the year ahead versus in Ontario where it is 80% and nationally where it’s 83%.

Opening a hospitality business in Toronto costs a median $325,000, matching both the Ontario and national medians, and most operators take more than a year to turn a profit.

Reaching profitability takes time: 41% of Toronto operators turned a profit within their first year, compared to Ontario at 39% and nationally at 37%, while 43% took two to three years.

“I think 80% of Canadians said they begun eating out less than say two years ago,” said Jackson. “So (Thanksgiving is) an opportunity for restaurants to make some of that ground up. In Toronto there were Thanksgiving dinners offered for $25 all the way up to $130 per head. Also brunches, lunches, and promotions and special dine out menus to get people through the door.”

Over one-third of Ontario restaurants say less consumer spending top threat to biz

Get out there and eat your turkey!

74% of Toronto restaurateurs optimistic

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