The Canadian economy isn’t all sunshine and roses (SEE: Falling loonie, rising food prices, selfie-obsessed PM – a look at Canada’s economic collapse), and it likely won’t be for quite a longtime. This hasn’t stopped Canadians, who are suffering from record-high debt levels, from eating out on a regular basis.
Using data from Restaurants Canada, Credit Canada Debt Solutions found in a report that spending on restaurants and takeout since the Second World War has skyrocketed at more than twice the rate of inflation. This is equal to roughly from $2 billion per year to a whopping $72 billion.
For the 25th consecutive year in a row, restaurant sales are expected to grow.
“It’s not uncommon for people to tell us they eat out two or three times a week,” says Laurie Campbell, CEO of the non-profit organization. “It’s expensive enough for a couple, but for a family? That just burns through money.”
Can Canadians afford eating out two to three times per week? Nope.
“It’s not uncommon for people to tell us they eat out two or three times a week. It’s expensive enough for a couple, but for a family? That just burns through money,” Campbell said. “Looking back 30 to 40 years ago, I believe going out for dinner was a big deal and a huge treat for a family. Today this is a common occurrence.”
In the third quarter of 2015, Canadian household debt grew faster than their incomes. Statistics Canada noted that household credit card debt to disposable income jumped to 163.7, up from 162.7 percent in the second quarter.
Or, when looking at the numbers, total credit market debt is $1.89 trillion, total mortgage debt is $1.23 trillion and consumer debt (car loans, lines of credit, credit cards) is $572 billion. Simply put: Canada is deep in the red.
This comes as new reports suggest that a growing number of Canadians – anywhere from one-quarter to half – say they’re living paycheck to paycheck. If you’re living paycheck to paycheck then how could so many Canadians be spending a lot of dough at restaurants.
The same thing can be applied in the United States. American consumers officially eat out more than they eat at home.
Insanity is the new norm. They can’t afford, but do it any way.
when you have to work 3 jobs to make ends meet, there’s just no time to cook. eating cheap food at a mom n pop restaurant actually costs about the same as stocking your fridge with processed, ready to eat foods or health foods. i would LOVE to cook at home every night. but if i did that, i would be showing up at work unshowered and in dirty clothes. the only food that is really cheap is staple foods and frozen vegetables. when mom and dad are both working, nobody’s home long enough to prepare 3 meals for the kids. i think the point you’re missing is the financially burdened citizens are even more strapped for time than they are strapped for cash.