McDonalds Cuts Prices In Canada Slightly, 41% Of Restaurants Barely Breaking Even

[Economy 52,858]

https://www.bnnbloomberg.ca/investing/investor-outlook/2026/01/13/investor-outlook-lower-fast-food-prices-raise-consumer-demand-questions/

 

Canadians are pulling back big time on eating our amid cost of living crisis and restaurants are under severe strain. According to new polls, 41% of the Nations Restaurants are now only breaking even or operating at a loss vs only 12% just 3 years ago as restaurants deal with lower sales demand and input cost increases simultaneously

 

Canadians are instead turning more to fast food in proportion but even that is taking a hit. As a result this is resulting in stiff competition. Restaurants are trying to eat as much of the rising costs as possible and minimize passing on anymore to try and gain customers, Mcdonalds has outright cut prices slightly.

[Economy 52,858]

The situation must be complex. All i know is restaurant prices doubled in the last 5 years and tip expectations also went up (15% used to be ok now it has to be 18% to 20% minimum)

 

Despite the fact that I have a better paying job than 5 years ago, eating out actually still feels like more of a burden now and I only do it as an occasional treat.

 

In the 2010s I used to eat out all the time despite only making like 20% above minimum wage. Now I make like 75% above minimum wage and by most measures Im better off now, yet it actually feels more of a burden now to eat out and out of reach

Edited January 14 by Economy

[EART HL I NG 1,304]

I know there’s deeper economic doings that run with this. But if corporate greed for y’all up north is anything like here in the States then I’m glad they’re starting to feel it in their wallet. Their prices have become outrageous and there’s no need for it all  

Edit to add that I feel for the employees who will inevitably feel this burden in regards to their pay and benefits

Edited January 14 by EART HL I NG

[GregJA 5,531]

I gave up when businesses in general (not just restaurants ) started with the 18% tip to add to my pickup order or 18-20% tip in restaurants when the waitress came around once 

[Taumaturg0 1,356]

I'm amazed at how the first world still has developing world problems... You guys have the same inflation in a year than we do in a month and somehow, same issues

[Economy 52,858]

4 hours ago, EART HL I NG said:

I know there’s deeper economic doings that run with this. But if corporate greed for y’all up north is anything like here in the States then I’m glad they’re starting to feel it in their wallet. Their prices have become outrageous and there’s no need for it all  

Edit to add that I feel for the employees who will inevitably feel this burden in regards to their pay and benefits

Corporate greed in general yes but Restaurants have never been a high profit margin industry, they have traditionally been razor thin like airlines

 

The biggest price gougers here based on high profit margins (often as much as 20% to 30% of revenue) are Banking and Telecom, both sectors which are heavily ologopolized here

 

Banking basically has 5 really large banks (and a 6th that has grown to some National Relevancy) that make up 90% of the Banking industry

 

Telecom has basically 3 or 4 large parent companies that own almost the entire network and most smaller competitors are owned by them and so not actually smaller competitors

 

Grocery Chains and Airlines also have literally just a few players making up most of the market, yet despite this, they do not achieve the profit margins Banks and Telecoms do

 

Canada is extremely Corporate tho despite the misleading perception to the world. To illustrate just how much... Canada as the Worlds 10th Largest Economy and a GDP of about $2.5 Trillion has a bigger stock market than Germany the worlds 3rd largest economy with a GDP of over $4.5T.

 

This because despite an economy almost twice as large, they have way more small and medium sized companies that arent publicly traded while Canadas economy is extremely Corporate run. We are #6 largest stock and equity market despite #10 on pure economic size

Edited January 14 by Economy

[monstertoronto 11,744]

I have now been to restaurants where the lowest tip option in the thingy was 25% and it had “okay” or something written next to it and then there were options for 30% “good”, 40% “great”, and actually a 50% tip option that they called “excellent”! What normal person would leave a 50% tip?? I had to do a custom tip just to leave 20% but I wanted to leave even less because I was so disgusted at the audacity. 

[Economy 52,858]

5 minutes ago, monstertoronto said:

I have now been to restaurants where the lowest tip option in the thingy was 25% and it had “okay” or something written next to it and then there were options for 30% “good”, 40% “great”, and actually a 50% tip option that they called “excellent”! What normal person would leave a 50% tip?? I had to do a custom tip just to leave 20% but I wanted to leave even less because I was so disgusted at the audacity. 

I literally dont understand why tip expectations keep rising. Tip earners already got an automatic raise when the law came in Ontario that tip earners still had to get the full minimum wage regardless (in the past tip earners could earn less)...

 

But my bigger argument is that since restaurant menus went up faster than general average inflation, then by default the tips already go up more than general inflation as well since they are a percentage of the base price. So anyone who argues we need to tip more because of inflation is completely ignoring the fact that the menu prices going up already means a higher tip automatically as well without the percentages going up

 

15% was perfectly manageable before. Now 20% to 25% on menu prices that already skyrocketed to begin with is just such a burden

 

I just eat out way less than I used to simple as that. The prices are too astronomical now to justify. Me and my wife for a dinner now pay $100+ by time taxes and tip are included and we usually dont order alcohol. Its madness

[Helxig 45,359]

6 hours ago, GregJA said:

I gave up when businesses in general (not just restaurants ) started with the 18% tip to add to my pickup order or 18-20% tip in restaurants when the waitress came around once 

1 hour ago, monstertoronto said:

I have now been to restaurants where the lowest tip option in the thingy was 25% and it had “okay” or something written next to it and then there were options for 30% “good”, 40% “great”, and actually a 50% tip option that they called “excellent”! What normal person would leave a 50% tip?? I had to do a custom tip just to leave 20% but I wanted to leave even less because I was so disgusted at the audacity. 

1 hour ago, Economy said:

I literally dont understand why tip expectations keep rising. Tip earners already got an automatic raise when the law came in Ontario that tip earners still had to get the full minimum wage regardless (in the past tip earners could earn less)...

I'm so glad that I live in a country where tipping isn't at all a thing and workers just get paid a liveable wage upfront anyway 

I HATED tipping culture in the US. Hate it

[Lextyr97 20,796]

6 hours ago, Economy said:

The situation must be complex. All i know is restaurant prices doubled in the last 5 years and tip expectations also went up (15% used to be ok now it has to be 18% to 20% minimum)

 

Despite the fact that I have a better paying job than 5 years ago, eating out actually still feels like more of a burden now and I only do it as an occasional treat.

 

In the 2010s I used to eat out all the time despite only making like 20% above minimum wage. Now I make like 75% above minimum wage and by mosy measures Im better off now, yet it actually feels more of a burden now to eat out and out of reach

I make about 40% more than I did 5 years ago yet I feel broker than ever

[Economy 52,858]

5 hours ago, Lextyr97 said:

I make about 40% more than I did 5 years ago yet I feel broker than ever

Wages have not kept up with cost of living increases so not surprised everyone feels that way

 

On paper wages have kept up with official CPI but thats not the same as cost of living, plus the CPI has some major flaws that imo under estimate inflation

[Mr Ricky 9,089]

That tipping economy there is insane. I tip whenever I get good service/food. I won't ever tip if it's the opposite. And I decide what I want to tip, not some percentage. Restaurants just need to increase the wage for their personnel. 

Increase wage -> happier/hard working staff -> better service -> happy customers -> they tip because of the service/food 

Edited January 14 by Mr Ricky

[Dojo 19,823]

good, now my ex can afford a happy meal 

[tylerjs 6,093]

a large order of fries at my local McDonald’s is $4.09 plus tax USD

just the fries lol

Edited January 14 by tylerjs