September 22, 2025RED FM News DeskA new report from Restaurants Canada reveals growing financial strain across the foodservice industry, as both rising costs and shifting consumer habits take a toll on restaurant operators. The primary reason: the rising cost of living. Restaurants Canada CEO Kelly Higginson calls the trend “alarming,” noting that consumers are increasingly seeking more value for their money. At the same time, restaurants are grappling with sharp increases in food prices, labour costs, and insurance, all of which have grown by double-digit percentages. As of June 2025, the report found that 41% of restaurants were either losing money or just breaking even.