Restaurants: Value-seeking consumers shape Canadian dining preferences

Why it is the topic trending:

• Cost-of-Living Concerns: Persistent inflation and rising expenses across various sectors are forcing Canadians to be more mindful of their spending, significantly impacting their choices when dining out.

• Shifting Dining Trends: These economic pressures are causing noticeable changes in what consumers order, which types of restaurants they visit, and how frequently they eat out.

• Importance for Restaurant Operators: To remain competitive and profitable, restaurant owners and managers must thoroughly understand these evolving consumer behaviors and preferences.

• Focus on Value Beyond Price: While price is a factor, Canadians are primarily seeking the best possible combination of quality, quantity, and overall experience for their foodservice budget.

Overview:

The article examines the significant influence of cost-conscious Canadian consumers on the restaurant industry in 2025. Facing continued financial strain, diners are altering their habits, as highlighted in a recent report by Restaurants Canada and Circana. The findings emphasize a strong consumer focus on maximizing value when eating out, leading to shifts in everything from the specific menu items chosen and the methods used to find discounts to the effectiveness of restaurant loyalty programs in retaining customers.

Detailed Findings:

• Growth of Coupon Culture: With rising costs impacting their budgets, Canadian consumers are increasingly turning to digital platforms and social media in their search for restaurant coupons and promotional offers, with digital formats now preferred over traditional physical coupons.

• Combos Offer Best Value: While the use of coupons remains a popular strategy for saving money, combo meals are the most favored type of deal, suggesting that consumers are prioritizing getting more food for a bundled price rather than just the absolute lowest cost.

• Shifting Restaurant Choices: Instead of trading down to less expensive full-service establishments as seen in past economic downturns, many Canadians are now opting for less expensive individual menu items at their preferred restaurant types, often skipping beverages like soda in favor of complimentary water, and choosing to forego add-ons such as extra sides or desserts.

• Gen Z's Influence on Tech: The dining trends are significantly influenced by Generation Z, who are actively driving the demand for technological tools and digital platforms to discover and access restaurant deals, as well as to engage with digital ordering and delivery services linked to loyalty programs.

• Loyalty Programs Drive Return Visits: Restaurant loyalty programs are proving to be an effective tool for attracting and retaining customers, with a large majority of Canadian members reporting that these programs incentivize them to return to the restaurant more often and provide a valuable return on their engagement.

Key Success Factors of Product (Trend):

• Meeting Value Expectations: Restaurants that can effectively communicate and consistently deliver on the expectation of receiving good value for money will be more successful in attracting and retaining customers in the current economic climate.

• Embracing Digital Channels: Restaurants that actively utilize social media platforms and other digital channels to share coupons, promote deals, and manage loyalty programs are better positioned to connect with value-conscious consumers.

• Offering Combo Deals: Strategically designed combo meals that bundle popular items at a slightly reduced price compared to purchasing them separately strongly appeal to diners looking to maximize their spending.

• Implementing Effective Loyalty Programs: Well-structured loyalty programs that offer relevant and tangible rewards for repeat business are crucial for building customer loyalty and encouraging ongoing patronage.

• Understanding Generational Preferences: Recognizing the distinct preferences of different generations, particularly the tech-savviness of Gen Z when it comes to finding deals, is important for tailoring marketing and promotional strategies.

Key Takeaway:

In 2025, the Canadian dining landscape is being fundamentally reshaped by consumers' strong focus on value, a direct response to ongoing economic pressures. This means restaurants must prioritize offering attractive deals, effectively utilizing digital platforms to reach consumers, and understanding that value encompasses not just price but also the overall quality and experience.

Main Trend:

The Canadian Quest for Smart Dining Value

Description of the Trend:

This trend illustrates how Canadian consumers are strategically navigating the dining landscape in 2025 by prioritizing value in a way that goes beyond simply seeking the lowest prices. They are actively employing smart tactics such as leveraging digital deals, favoring combo meals, making careful menu selections, and engaging with loyalty programs to optimize their dining experiences without exceeding their budgets.

What is Consumer Motivation:

• Smart Spending: Consumers are motivated to be more strategic and informed about how they spend their limited dining dollars.

• Maximizing Enjoyment Within Budget: They want to continue enjoying the experience of dining out while staying within their financial constraints.

• Seeking Tangible Savings: The desire to find and utilize deals, discounts, and rewards to reduce the overall cost of their meals is a key motivator.

• Making Informed Choices: Diners are taking the time to compare options and choose menu items that offer the best perceived value.

• Building Loyalty for Rewards: Consumers are motivated to join and actively participate in loyalty programs that offer meaningful benefits for their repeat business.

What is Driving Trend:

• Economic Instability: Persistent inflation and rising cost of living continue to put pressure on household finances across Canada.

• Ubiquitous Digital Access: The widespread availability and usage of smartphones and the internet make it easy for consumers to find and use digital deals and engage with loyalty programs.

• Competitive Restaurant Market: The restaurant industry in Canada is highly competitive, leading establishments to offer more deals and promotions to attract customers.

• Technological Adoption by Younger Generations: Gen Z's reliance on digital tools is normalizing and driving the adoption of digital tools for finding value in dining.

• Data on Loyalty Program Effectiveness: Clear evidence that loyalty programs influence consumer behavior is encouraging more diners to participate.

What is Motivation Beyond the Trend:

• Maintaining a Sense of Normalcy: Despite economic challenges, people still want to maintain some aspects of their pre-inflation lifestyle, such as occasional dining out.

• Finding Affordable Ways to Socialize: Restaurants often serve as social hubs, and consumers are looking for budget-friendly ways to connect with friends and family in these settings.

• Supporting Local Businesses Mindfully: Some consumers may want to continue supporting local eateries but need to do so in a more cost-effective manner.

• Convenience of Not Cooking: The desire for a break from meal preparation remains a factor, but now balanced with cost considerations.

• Occasional Indulgence (with a deal): Even when budget-conscious, consumers may still want to treat themselves occasionally if they can find a good deal.

Description of Consumers Article is Referring To:

The article focuses on Canadian consumers who are facing increased cost of living and are adjusting their dining habits to maximize the value they receive when eating out.

• Who are them: Canadian consumers across various demographics.

• What kind of products they like: Restaurant meals from quick-service to potentially table-service (though less so for the latter currently), combo meals, discounted items, and offerings from loyalty programs.

• What is their age?: Spans all age groups, with specific emphasis on the influence of Gen Z.

• What is their gender?: Not explicitly specified.

• What is their income?: Likely a wide range, but predominantly those feeling the pinch of rising costs and actively seeking ways to save money on dining.

• What is their lifestyle: Includes individuals and families who dine out for various reasons (convenience, social, treat) but are now more budget-conscious in their approach.

• What are their category article is referring shopping preferences: Dining at restaurants (both quick-service and table-service).

• Are they low, occasional or frequent category shoppers: Likely a mix, including those who might be dining out less frequently overall but are more strategic when they do, and those who continue to dine out frequently but are more focused on value.

• What are their general shopping preferences-how they shop: Increasingly utilizing digital tools for research, deal discovery, and engaging with loyalty programs, demonstrating a savvier and more price-aware approach to their spending.

Conclusions:

The current economic landscape is fundamentally altering how Canadians approach dining out, with a strong and pervasive emphasis on seeking and obtaining maximum value. This shift requires restaurants to adapt their strategies to meet these evolving consumer expectations and preferences effectively.

Implications for Brands:

• Prioritize Transparent Value Communication: Clearly highlight savings and benefits in all promotional materials and on menus.

• Invest in User-Friendly Digital Platforms: Ensure your website and apps are easy to navigate for finding deals and managing loyalty accounts.

• Offer a Variety of Price Points and Portion Sizes: Cater to different budgets and appetites with a range of menu options.

• Train Staff to Highlight Value Options: Equip your team to point out specials and combo deals to customers.

• Continuously Analyze and Adapt Loyalty Programs: Regularly review the effectiveness of your loyalty program and make adjustments based on customer feedback and data.

Implication for Society:

• Potential for Increased Demand at Value-Oriented Establishments: Restaurants known for their affordability and deals might see a rise in customers.

• Evolution of Restaurant Business Models: Restaurants may need to become more creative in offering value while maintaining profitability.

Implications for Consumers:

• More Opportunities to Save Money on Dining Out: Increased availability of deals and loyalty rewards.

• Need to Be Proactive in Seeking Out Value: Consumers will need to actively look for and utilize available discounts and programs.

Implication for Future:

• Value Will Remain a Key Differentiator: As long as economic pressures persist, the emphasis on value is likely to remain a key factor in consumers' dining choices.

• Further Integration of Technology in Deals: Expect even more sophisticated digital tools for finding and redeeming restaurant offers.

Consumer Trend:

Name: The Frugal Foodie

Detailed Description: Canadian consumers who enjoy dining out but are increasingly prioritizing affordability and value for their money in their restaurant choices, actively seeking deals and making strategic decisions about what and how much they order.

Consumer Sub Trend:

Name: Digital Deal Seekers

Detailed Description: The growing segment of diners, particularly Gen Z, who heavily rely on technology, social media, and digital platforms to find and utilize coupons, discounts, and loyalty programs for restaurants.

Big Social Trend:

Name: The Smart Spending Movement

Detailed Description: Across various sectors, consumers are becoming more focused on getting the best value for their spending as they navigate rising costs of living and economic uncertainty.

Worldwide Social Trend:

Name: Global Cost Consciousness

Detailed Description: Economic pressures are leading consumers worldwide to be more mindful of their spending and to seek greater value in their purchases, including dining out.

Social Drive:

Name: The Pursuit of Economical Enjoyment

Detailed Description: Consumers still desire enjoyable experiences like dining out but are increasingly driven to find ways to do so that align with their budgetary constraints.

Learnings for brands to use in 2025:

• Make Value Easily Discoverable Online: Ensure deals and loyalty program information are prominently featured on your website and social media.

• Offer a Clear Return on Loyalty: Design your loyalty program with rewards that customers genuinely want and will actively work towards.

• Experiment with Creative Combo Options: Develop unique and appealing combo meals that offer a significant saving compared to individual purchases.

• Personalize Digital Offers Based on Customer Data: Use information about past orders and preferences to provide relevant and valuable digital coupons.

• Track Redemption Rates of Deals to Optimize Future Offers: Analyze which promotions are most effective in driving traffic and sales.

Strategy Recommendations for brands to follow in 2025:

• Implement a Dynamic Digital Coupon Strategy: Regularly offer new and engaging digital coupons through various online channels.

• Create Tiered Combo Meal Options: Provide a range of combo deals at different price points to appeal to various budgets.

• Develop a User-Friendly Mobile Loyalty App: Make your loyalty program easily accessible and rewarding through a dedicated mobile application.

• Run Social Media Campaigns Highlighting Value: Focus your social media content on showcasing deals, discounts, and the value proposition of your menu items.

• Offer "Build-Your-Own" Combo Options: Give customers the flexibility to create their own value meals based on their preferences and budget.

Final sentence (key concept) describing main trend from article:

Canadian dining preferences in 2025 are decisively shaped by a consumer base prioritizing value and actively seeking cost-saving opportunities when eating out.

What brands & companies should do in 2025 to benefit from trend and how to do it:

• Actively Promote Value-Focused Menu Items: Highlight affordable options and combo deals prominently on your menu and in your marketing.

• Develop a Strong and User-Friendly Digital Presence for Deals: Ensure your website and apps make it easy for customers to find and redeem coupons and access loyalty rewards.

• Create Engaging and Rewarding Loyalty Programs: Offer meaningful incentives for repeat customers that provide tangible value.

• Utilize Social Media to Share Discounts and Special Offers: Regularly communicate your value propositions through social media campaigns.

• Train Staff to Inform Customers About Value Options: Encourage your team to proactively mention deals and combo meals to diners.

Final Note: Core Trend

• Name: The Economically Minded Diner

• Detailed Description: Canadian consumers in 2025 are making dining decisions with a strong emphasis on affordability and value due to ongoing cost-of-living concerns.

Final Note: Core Strategy

• Name: Value-Centric Operations and Marketing

• Detailed Description: Restaurants need to prioritize offering value in their menus, deals, and loyalty programs, and effectively communicate this value to attract and retain customers.

Final Note: Core Industry Trend

• Name: The Optimization of Dining Deals Through Technology

• Detailed Description: The restaurant industry is increasingly relying on digital platforms to deliver and manage coupons, discounts, and loyalty programs to value-seeking consumers.

Final Note: Core Consumer Motivation

• Name: Achieving Maximum Value in Foodservice Spending

• Detailed Description: The fundamental motivation of Canadian diners is to get the most for their foodservice dollars in the current economic climate.

Final Conclusion:

The dominant trend of value-seeking among Canadian diners in 2025 necessitates that restaurants strategically adapt their operations and marketing to emphasize affordability and the delivery of maximum value to attract and retain customers in a competitive market.

Core Trend Detailed:

• Description: The Canadian Quest for Dining Value signifies a significant and pervasive shift in consumer behavior within the Canadian restaurant industry in 2025. Triggered by persistent cost-of-living concerns, Canadian diners are moving beyond simply seeking the cheapest options and are instead engaging in a more nuanced pursuit of "value." This involves a strategic and multifaceted approach to their dining choices, where they actively seek out and utilize a variety of tools and tactics to maximize the benefits and minimize the costs associated with eating out, demonstrating a heightened level of financial awareness and a determination to make their foodservice dollars stretch further.

  • Key Characteristics of the Trend:

    • Strategic Deal Seeking: Consumers are actively searching for and utilizing coupons, discounts, and promotional offers from restaurants, indicating a proactive approach to saving money on their meals.

    • Preference for Bundled Value: Combo meals and bundled offerings are highly favored as they provide a perception of getting more food or benefits for a single, often slightly reduced, price point compared to purchasing items individually.

    • Conscious Menu Selection: Diners are making more deliberate choices about what to order, frequently opting for less expensive items and often skipping add-ons or extras like beverages to manage their overall spending.

    • Engagement with Loyalty Programs: There is a strong emphasis on participating in restaurant loyalty programs to earn rewards, discounts, and other benefits that provide ongoing value for their patronage.

  • Market and Cultural Signals Supporting the Trend:

    • Restaurants Canada and Circana Report: The "2025 Hot 10 Restaurant Trends" report specifically identifies the prioritization of value as a dominant factor shaping consumer dining behavior in Canada.

    • Survey Data on Spending Adjustments: Research indicates a significant portion of Canadians are either cutting back on the frequency of their restaurant visits or are actively employing strategies like using coupons more often to save money while dining out.

    • Increased Digital Coupon Activity: The growing preference for and utilization of digital coupons and promotional codes over traditional physical coupons highlights the role of technology in facilitating value-seeking behavior.

    • Restaurant Marketing Focus: Many restaurants are actively promoting deals, discounts, and the benefits of their loyalty programs in their marketing efforts, directly responding to the consumer demand for value.

  • How the Trend Is Changing Consumer Behavior:

    • Heightened Price Sensitivity: Consumers are becoming increasingly aware of and sensitive to the prices of menu items, carefully comparing costs across different options and establishments before making a decision.

    • Increased Reliance on Digital Resources: Diners are more frequently turning to restaurant websites, mobile applications, and social media platforms to discover available deals and manage their loyalty accounts.

    • Greater Selectivity in Restaurant Choice: Consumers may be more inclined to choose restaurants that are known for offering good value or consistent promotions over those perceived as being more expensive without offering comparable benefits.

    • Potential for Order Modifications: Diners might be more willing to customize their orders by removing items they deem non-essential to reduce the overall cost of their meal while still enjoying the core components they desire.

  • Strategic Forecast:

    • Continued Emphasis on Value: The focus on value in Canadian dining is highly likely to persist as long as economic pressures remain a significant concern for households across the country. Restaurants will need to continually adapt their offerings and strategies to cater to this value-driven mindset to maintain customer traffic and loyalty.

    • Agility and Innovation in Value Propositions: Restaurants will need to be agile and creative in how they offer value to consumers, potentially exploring new types of combo deals, discounts tied to specific days or times, and more personalized offers based on customer data. This ongoing innovation will be key to staying competitive.

    • Central Role of Digital Platforms: Technology will become even more crucial in connecting restaurants with value-seeking consumers. Expect to see further advancements and wider adoption of digital platforms for discovering and utilizing dining deals, as well as for managing loyalty programs and facilitating online ordering with discounts.

    • Evolution of Loyalty Programs for Deeper Engagement: Restaurant loyalty programs are anticipated to evolve further, potentially offering more personalized and relevant rewards tailored to individual customer preferences and spending habits. Gamification and exclusive offers for loyal members could also become more prevalent.

    • Navigating the Balance Between Price and Experience: A key challenge for restaurants will be to strike the right balance between offering attractive value propositions and maintaining the quality of the food and the overall dining experience. Consumers will likely continue to seek good deals, but they will also expect a positive and enjoyable experience for their money.

Final Thought (summary):

Despite the enduring appeal of dining out and the desire for a convenient break from cooking, Canadian consumers in 2025 are overwhelmingly prioritizing value in their restaurant choices. They are strategically navigating their dining experiences to maximize their spending power amidst ongoing economic uncertainty, carefully seeking out deals, opting for cost-effective menu items, and actively engaging with loyalty programs to make their foodservice dollars stretch further and still enjoy the social and culinary aspects of eating out.

Source: https://www.restobiz.ca/value-seeking-consumers-shape-canadian-dining-preferences/