Across Canada, the restaurant industry is facing one of the most challenging operating environments in decades. Despite strong consumer demand for dining experiences, many restaurant operators are finding themselves struggling to remain profitable. In fact, recent industry reports indicate that nearly half of Canadian restaurants are currently operating at a loss or just breaking even—an alarming trend that has become more pronounced in the years following the pandemic (Restaurants Canada, 2024).
For restaurateurs in Calgary and across Canada, this reality reflects a combination of rising operating costs, shifting consumer behaviour, and—perhaps most importantly—location decisions that can make or break a concept.
Rising Costs Continue to Pressure Operators
Food Costs
Food prices have risen sharply over the past several years, significantly increasing the cost of ingredients for restaurants. Operators across the country have reported substantial increases in the price of meat, dairy, produce, and other key menu inputs. Restaurants often face a difficult balancing act between raising menu prices to offset these increases and maintaining affordability for customers (Statistics Canada, 2024).
Labour Challenges
Labour shortages continue to impact the hospitality industry nationwide. Staffing has become more difficult and expensive, with operators needing to offer higher wages and improved working conditions to attract and retain employees. These pressures have increased overall operating costs while also making scheduling and service consistency more challenging.
Consumer Spending Shifts
Economic uncertainty and rising household costs have also changed consumer behaviour. With higher housing costs, grocery bills, and interest rates affecting many households, dining out has become more discretionary for some Canadians (Bank of Canada, 2024). This means restaurants must work harder to attract customers and deliver experiences that justify spending.
Calgary’s Market: Growth with Competition
Calgary remains one of Canada’s fastest-growing major cities, with strong population growth and ongoing residential development across many communities. This growth presents major opportunities for restaurant operators looking to establish themselves in expanding neighborhoods (City of Calgary, 2023).
However, growth also means increased competition. As more restaurants open across the city, the ability to capture consistent traffic becomes increasingly important.
Why Location Matters More Than Ever
Choosing the right space is one of the most critical decisions a restaurant operator can make. In a challenging economic climate, the right location can significantly improve visibility, drive traffic, and reduce reliance on expensive marketing.
Successful restaurant locations often share several key characteristics:
High Visibility
Strong street frontage ensures that businesses are easily seen by both drivers and pedestrians, helping build brand recognition and attract spontaneous visits.
Access to Growing Communities
Restaurants located near dense residential neighborhoods benefit from built-in customer bases and consistent daily traffic.
Ease of Access
Convenient parking, proximity to major roadways, and pedestrian accessibility all contribute to a better customer experience.
Neighborhood Synergy
Being located near complementary businesses—such as cafes, retail stores, fitness studios, or offices—can generate cross-traffic and repeat visits.
A Strong Example: EV606 in East Village
At JR Mercantile Real Estate Advisors, we focus on helping hospitality operators secure locations that support long-term success.
One such opportunity is EV606, located in Calgary’s East Village—one of the city’s most rapidly evolving and high-density urban communities. Positioned steps from the Riverwalk, this location benefits from consistent pedestrian traffic driven by residents, office users, and year-round visitors.
In addition to strong foot traffic, EV606 offers excellent connectivity. Immediate access to Memorial Drive and close proximity to Macleod Trail provide seamless vehicle access from across the city, making it easy for customers to reach the space whether they’re commuting, living nearby, or visiting the downtown core.
Locations like EV606 combine daily neighbourhood traffic with destination-driven exposure—an increasingly important factor for restaurant operators looking to build sustainable, long-term businesses in today’s market.
Opportunities for New and Expanding Restaurants
While the restaurant industry faces ongoing challenges, Calgary continues to offer strong opportunities for operators who align their concept with the right market and location.
At JR Mercantile Real Estate Advisors, we represent a wide range of retail spaces across Calgary, including opportunities suitable for restaurants, cafés, and food-based businesses looking to establish themselves in growing communities.
For both new and established operators, selecting the right space can be a key step toward long-term sustainability.
Sources Consulted:
Restaurants Canada. (2024). Foodservice facts 2024. https://www.restaurantscanada.org
Statistics Canada. (2024a). Consumer Price Index, annual review. https://www.statcan.gc.ca
Statistics Canada. (2024b). Job vacancies, payroll employees, and wages in the restaurant industry. https://www.statcan.gc.ca
Bank of Canada. (2024). Monetary policy report. https://www.bankofcanada.ca
City of Calgary. (2023). Calgary in numbers: Population and growth. https://www.calgary.ca
