Canada food service sales extend monthly gains in August

Canada food service sales extend monthly gains in August
August food service surge

Canadian food services and drinking places sales continue to rise in August, reaching $8.9 billion for an eighth straight monthly increase. The gain comes as restaurant food prices and prices for alcoholic beverages served in licensed establishments both run 3.1% above a year earlier.

Highlights

  • Statistics Canada reports total sales in food services and drinking places subsector up 0.3% in August from July, led by full-service restaurants.
  • Drinking places sales drop 0.6% in August, while restaurant food prices and alcoholic beverage prices both rise 3.1% year-over-year.
  • British Columbia leads provincial sales gains with 0.6% increase, while Nova Scotia posts largest decline at 0.8% in August.

August sales trends across restaurant segments

As reported by Statistics Canada, total sales in the food services and drinking places subsector increase 0.3% in August from July levels. The largest dollar gain comes from full-service restaurants, where sales rise 0.3%, while limited-service eating places post a 0.2% increase and special food services climb 0.4%.

Drinking places are the main weak spot in the monthly data, with sales declining 0.6%. At the same time, non-seasonally adjusted prices for food purchased from restaurants are up 3.1% compared with August 2025, matching the 3.1% increase in unadjusted prices for alcoholic beverages served in licensed establishments.

Provincial performance shows uneven momentum

Sales increase in four provinces in August, led by British Columbia with a 0.6% gain. Ontario records a 0.4% increase, while Alberta rises 0.3% and Quebec adds 0.2%.

The largest provincial declines come from Nova Scotia, where sales fall 0.8%, and Saskatchewan, down 0.7%. The mixed regional picture suggests consumer spending on dining and drinking remains positive overall in Canada, but momentum varies by province and business type.

Our earlier article on Famous Brands’ interim outlook highlighted how rising operating costs and a goodwill impairment tied to its Botswana exposure were set to pressure profitability for the six months ended 31 August 2026. It also noted the group’s plan to sell down its stake in the Botswana Retail Group as part of an asset-light strategy aimed at reducing exposure to operating losses while keeping a smaller economic interest.

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