Toronto restaurants see big decline in people dining in due to pullback in spending

Toronto restaurants are experiencing a troubling decline in in-person dining amid the rising cost of living and record-high inflation, according to new data from OpenTable. 

The online restaurant reservation service company measured the weekly change in seated diners for 2023 versus 2022 in cities across North America, and its findings were rather alarming. 

During the first 10 days of September, restaurants in Toronto witnessed a staggering 10 per cent decline in diners when compared to the same time last year. 

Probably a few factors here.

1. Eating out has become expensiver. Everything in Toronto has become expensiver
2. Restaurants are asking for mandatory tipping
3. The forced lockdowns have made people accustomed to eating in.
4. Dressing up to go out and eat can be a lot of work.

— Owen Jones (@ohwenjonez) September 12, 2023

The declining trend for in-person dining has been observed in Toronto for more than three consecutive months now, having first fallen below 2022 levels back in June — ironically the same time of year when restaurants typically see an uptick in diners. 

Change in seated diners by week, 2023 vs. 2022 in Canada. Source: OpenTable.

Taking a look at the country as a whole, the volume of in-person dining declined three per cent in September when compared to the same period last year. 

OpenTable sourced the data from its State of the Industry Dashboard, which observes online, phone, and walk-in reservations for restaurants that were also on the platform a year ago. 

Change in seated diners by month in 2023 vs. 2022 in Canada. Source: OpenTable.

The recent figures come during a time when restaurants across Toronto are already battling to stay afloat amid rent increases, food inflation, and challenges associated with years of lockdowns. 

The numbers will be skewed, year over year. There was a large surge in restaurant sales when restrictions were lifted & now they are seeing a cooling off period as the novelty wears off. It would be interesting to see overall sales, including delivery & takeout.

— SJ 🇨🇦 (@OntarioNative) September 12, 2023

Unfortunately, for some long-standing institutions in the city, the constantly static lunch hours, vacant dining rooms, and rising costs have just proven to be just too challenging to survive in the city.