With the May long weekend—and the unofficial start to summer—in the rearview mirror, many Canadians and visitors to Canada are planning their vacations, including where they’re going to stay and dine. Others may be staying closer to home but still heading out to restaurants, cafes and patios.
The Canadian Survey on Business Conditions asked a number of questions to businesses in accommodation and food services, which includes all short-term lodging and both eat-in and take-out restaurants. Let’s have a look at the key takeaways.
Just over one in six businesses expect an increase in sales
In the first quarter of 2026, just over one in six businesses (16.9%) in the accommodation and food services sector expected an increase in sales over the next three months, while almost three in five (59.6%) expected them to stay the same. Almost one in four (23.2%) expected a decrease in sales.
Just over 1 in 10 (10.6%) businesses in the sector expected an increase in demand for their services in the next three months, though this proportion varied by province—from 5.9% in Ontario to 24.4% in Saskatchewan.
Data from last year’s tourism season could be a reason for businesses to expect increased demand and sales in 2026.
According to the National Travel Survey, Canadian residents travelling in Canada upped their visits, nights, and expenditures in the second and third quarters of 2025 from the same two quarters a year earlier. Over the same period, non-resident visitors took fewer trips and stayed fewer nights, but spent more money.
Food services and drinking places reported higher receipts in each month of the second and third quarters of 2025, on a year-over-year basis.
Businesses expect a squeeze on profits, an increase in operating expenses, and to raise prices
In the first quarter of 2026, fewer than 1 in 10 businesses (9.7%) in accommodation and food services expected an increase in profitability over the next three months, while about half (50.3%) expected a decrease and almost two in five (39.6%) expected it to stay about the same.
Almost three in five (59.4%) businesses expected an increase in operating expenses over the next three months. A considerably smaller proportion (13.7%) expected an increase in operating income over the next three months, while about one-third (33.8%) expected a decrease.
More than one-third of businesses (35.5%) expected to raise prices over the next three months, while a majority (59.9%) expected to keep them about the same.
Obstacles include inflation, cost of inputs, uncertainty about demand
In the first quarter of 2026, inflation was the most expected obstacle in the next three months, by three in five businesses (60.0%), followed by the cost of inputs (such as food ingredients and other equipment) (43.5%), and costs in real estate, leasing or property taxes (35.0%).
Considerable proportions of businesses cited demand-related obstacles: attracting new or returning customers (26.4%); fluctuations in consumer demand (25.7%); and insufficient demand for goods or services offered (17.1%).
Some businesses plan to sell or close
When asked in the first quarter of 2026 about their plans over the next 12 months, almost 1 in 10 private sector businesses in accommodation and food services said they planned to sell the business (9.9%), while a lesser proportion planned to transfer the business (2.9%). Additionally, 1.4% of private sector businesses in accommodation and food services said they planned to close the business over the next 12 months.
When looking at expansion plans, private sector businesses in accommodation and food services planned to expand, either at the current location (4.6%), or into a new province or territory (1.6%), or to other locations within the same province (3.0%).
Note to readers
The most recent survey was conducted from January 2 to February 6, 2026, and respondents were asked about their expectations for the next three months. As a result, this three-month period could range from January 2 to May 6, 2026, depending on when the business responded.
Please note that the final collection cycle of the Canadian Survey on Business Conditions will take place in summer 2026, with the last release scheduled for August 2026. Statistics Canada wishes to thank Canadian businesses for their participation in the survey since 2020. To learn how the agency is adapting to continue delivering quality data Canadians rely on, visit Delivering trusted data through change.
Contact information
For more information, contact the Statistical Information Service (toll-free 1-800-263-1136; 514-283-8300; infostats@statcan.gc.ca) or Media Relations (statcan.mediahotline-ligneinfomedias.statcan@statcan.gc.ca).