Full tables, tight margins
2025 dining out and travel recap
By Siddhartha Bhattacharya 4 March 2025 2 min read
Building on our previous analysis of Alberta’s retail spending patterns and their key drivers in 2025, today’s Twenty-Four dives into Alberta's restaurant sales and international travel trends over the past year.
Spending up, but diners show restraint
Food services and drinking establishments posted stronger revenues in 2025 across the country with national sales up 5.6%. Alberta establishments saw a notable 5.9% increase, improving on the 2.9% gain in 2024.
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While the overall increase in revenues is significant, the picture is less rosy when adjusting for restaurant food prices and population growth. Real* per capita restaurant sales only grew by 1.9% last year. While this is encouraging given the 5.2% decline in real per capita sales in 2024, it still trails the 10-year average by 2.5%.
*Deflated by the Alberta Consumer Price Index for food purchased at restaurants
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Profitability a challenge amidst cost and labour pressures
Despite overall sales growth, profitability in the restaurant sector remains under strain. Since the pandemic, restaurant price appreciation has lagged behind grocery price hikes, as we have shown, suggesting that operators are absorbing escalating costs rather than passing them on fully to consumers. A November 2025 report from Restaurants Canada indicated that 44% of operators were either losing money or just breaking even, up from 41% in June and sharply higher than the 12% recorded in 2019.
The labour market remains a persistent challenge for the accommodation and food services sector, which continues to face labour shortages. As of Q3 2025, the sector's job vacancy rate was 4.9%, exceeding the 2.7% all-industry average in Alberta. Despite four consecutive years of growth since 2021, employment in this industry has only just recovered to pre-2015 levels.
Travel a key driver of domestic activity
Cross-border travel appears to be a significant factor bolstering Alberta's dining activity. Trade tensions with the U.S. influenced travel patterns last year: the number of Albertans returning (via road and air) from the U.S. was down by 11.6%, while Alberta saw a rise in U.S. visitors (+6.7%) and visitors from other countries (+23.3%).
This influx of international travelers contributed to record spending by foreign residents, reaching $3.5 billion in the first nine months of 2025—a 10% increase over 2024 levels. The introduction of several new domestic and international flights in Calgary and Edmonton last year supported this trend.
Given the anticipated continued rise in domestic travel this year, we expect another positive year for the tourism sector in 2026.
Answer to the previous trivia question: The moon appears red(ish) during a lunar eclipse, as could be seen across Canada earlier this week.
Today’s trivia question: Who was the first woman elected to the Alberta Legislature?
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