While white-collar workers bemoan return-to-office mandates, at least one industry is thankful to have more people back at their desks: restaurants.
More than three quarters of Canadian restaurants enjoyed more foot traffic at their establishments in 2025, with an average increase of 34 per cent, according to TouchBistro’s
2026 Canadian State of Restaurants report.
“Monday morning coffee crowds are back, lunchtime is busy again, and mid-week dinner traffic is strengthening,” the report states. “Operators are no longer counting on Friday and the weekends to pay the bills.”
In 2024, Ottawa businesses pushed for federal public servants to return to the office as they struggled with the reduced foot traffic, which prompted a “buy nothing” campaign from the Public Service Alliance of Canada (PSAC).
Now, many public sector employees, including those working for the province of Ontario and the City of Ottawa, are back to the office full time.
Several major private sector employers have also rolled back work-from-home perks, including Bank of Montreal, Scotiabank,
Royal Bank of Canada
and
Amazon.com Inc.
National restaurant profit margins hit 10.4 per cent for the year, which the report calls “impressive” given the rise in operating costs and staffing concerns many face.
Despite the healthy margins, 73 per cent of restaurants are carrying debt, with an average balance of more than $57,000, the report said.
In Vancouver, 54 per cent of restaurants took out a loan or applied for financing in 2025 – significantly higher than other regions in Canada – in part due to a higher cost of living.
The
price of food
remains the biggest concern among restaurant operators, though many have dealt with the price pressures by either cutting food waste or increasing prices.
Food price inflation has been a hot-button issue, having risen twice as quickly as headline inflation in recent months. Grocery prices are up 30 per cent since 2019,
according to TD Economics.
In response to rising food costs, the federal government
announced a 25 per cent boost to the Goods and Services Tax (GST)
Credit for five years, with a 50 per cent increase this year. Carney has also renamed the credit the “Canada Groceries and Essentials Benefit.”
Overall, 82 per cent of restaurant owners are optimistic about the future and many are planning to expand. The report notes that 46 per cent of restaurateurs plan to extend their service through participation in food festivals, 39 per cent are considering adding a catering service and 39 per cent are looking to grow their offerings when it comes to private events.
“These shifts make sense when looking at customer behaviour – many are dining in larger groups and looking for experiences,” the report said. “Operators are meeting them where they are.”
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Canada and India have agreed to expand trade in oil and gas as the two countries look to rebuild their fractured relationship.
Under the deal, India will be sent more liquefied natural gas and liquefied petroleum gas, while Canada will receive more refined petroleum.
This comes as Canada looks to diversify its energy export markets and reduce its reliance on the U.S. There seems to be growing opportunities in Asia.
Canada only ships about one per cent of its critical minerals to India, and westward LNG exports only began as of June 2025.
Read more here.
- 9:45 a.m.: Bank of Canada interest rate announcement and monetary policy report
- 2:00 p.m.: U.S. Federal Reserve interest rate announcement
- 2:30 p.m.: Press briefing with U.S. Federal Reserve Chair Jerome Powell
- Earnings: Microsoft Corp., Meta Platforms Inc., Tesla Inc., IBM Corp., AT&T Inc., Starbucks Corp., Canadian Pacific Kansas City Ltd.
- Fear creeps into Canada-U.S. lobster industry as Trump’s tariff threats loom
- Canadian dollar climbs as one analyst speculates Trump is ‘engineering’ greenback’s decline
- Automatic tax filing is a good idea, but here’s how the CRA can make it even better for more people
- Forget about a spring recovery in the Canadian housing market
The balance of power in the rental market appears to be shifting after 15 straight months of price declines, though not everyone is in position to take advantage. The average apartment lease still requires a salary upwards of $82,000 to meet the established threshold of affordability.
Read more.
Interested in energy? The subscriber-only FP West: Energy Insider newsletter brings you exclusive reporting and in-depth analysis on one of the country’s most important sectors.
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McLister on mortgages
Want to learn more about mortgages? Mortgage strategist Robert McLister’s
Financial Post column
can help navigate the complex sector, from the latest trends to financing opportunities you won’t want to miss. Plus check his
mortgage rate page
for Canada’s lowest national mortgage rates, updated daily.
Financial Post on YouTube
Visit the Financial Post’s
YouTube channel
for interviews with Canada’s leading experts in business, economics, housing, the energy sector and more.
Today’s Posthaste was written by Ben Cousins with additional reporting from Financial Post staff, The Canadian Press and Bloomberg.
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Posthaste: Back-to-office mandates buoy Canadian restaurant industry
2026-01-28 13:00:58
