Higher income households eating out less as consumer pain bites: survey

Higher income Canadians are dining out less frequently as the cost of living continues to rise, according to new data from Restaurants Canada. The organization's survey, conducted in May and including 1,500 participants, revealed that 80% of all respondents said they have been eating out less often. This sentiment was echoed by 78% of households earning $100,000 or more annually, up from 70% in the previous year.

Meanwhile, 81% of households earning between $50,000 and $100,000 said they are dining out less this year, up from 76% last year. In contrast, households earning less than $50,000 have remained relatively unchanged, with 87% saying they are dining out less than last year, up from 86% the previous year.

Consumer and retail analyst Bruce Winder explained the phenomenon as part of a "K-shaped" economy, where the economic divide between top earners and lower income brackets is growing. He noted that while the wealthy are spending more, it is not enough to mask the fact that many lower-income households are spending less. Winder emphasized that the widening income disparity has significantly affected consumer spending patterns, with those who have more disposable income planning to visit table-service restaurants more often if they had more money to spare.