MOBI Index October

Data compiled by MOBI from over 1,715 hospitality businesses and 12.5 million transactions reveals a staggering one-third increase in the cost of dining out, as the hospitality sector grapples with rising costs of goods. The MOBI Index is released monthly to raise awareness about trends in the hospitality industry. MOBI’s CEO, Shannon Hautot emphasizes, “Reports like this serve as vital resources for companies to benchmark their experiences and inform critical decision-making.” 

Key Findings:

• Consumers are spending 35% more to dine out compared to 2019.
• Demand for dining out has decreased by 6% year-over-year.
• The average cost of a burger has reached $20, while a cup of coffee now averages $5.93.

Prices for dining in, takeout, and delivery have risen by 4.1% over the past year, mirroring the ongoing increase in the cost of living for Canadians. This trend is consistent with the MOBI Index data and aligns with Statistics Canada’s Consumer Price Index (CPI) reports. Notably, hospitality inflation has reached 4.8%, surpassing the national CPI of 1.6%. Since October 2019, the cost of dining out has surged by 35%, prompting many consumers to seek more budget-friendly options.

Raymond Ho, Vice President, Marketing & Communications, Fatburger Canada, states, “The rising cost of living continues to affect many people, and we've observed a significant impact on our day-to-day at Fatburgers Canada. The higher costs of key ingredients have compelled us to make significant decisions; such as optimising our menu prices, offering a broader range of value options, and perfecting operational efficiencies. Despite these challenges, our commitment to delivering fresh high quality food and a great dining experience remains unwavering.” 

“We recognise that consumers expect exceptional value for their money. Given that people are more cautious with their spending in these trying times, we find they are choosing establishments they know and trust, so it's essential that we deliver that credibility and provide exceptional worth. The economic slowdown has also shifted consumer behaviour, with more customers choosing take-away and delivery options as their go-to dining options. Data from the MOBI Index underscores these broader trends, and it’s evident that businesses like ours must stay agile and responsive to navigate these uncertain times effectively.” Fatburger operates 70 vibrant locations across Western Canada, delivering The Biggest, Juiciest Burgers You'll Ever Taste.

• Burgers: The average price of a burger in Canada has climbed to approximately $20 CAD, reflecting a 64% increase since 2019.
• Coffee: Canadians are now paying nearly $6 for their daily coffee, with prices increasing by 5% since 2023. Over the past five years, the price of a flat white has risen from $4.78 to $5.93—a 24% increase.

Hautot expresses concern over the rising costs facing the hospitality industry and the long-term impacts of the current economic climate. "We’ve observed an average 10% drop in the frequency of orders over the past year, indicating that consumers are dining out less often. In October, this decline was smaller at 6%, likely due to extra public holidays. Overall, while spending per visit has only decreased slightly by 2%, the significant trend is that people are eating out less frequently. The demand for online ordering continues to grow as consumers seek the convenience of placing orders directly through their phones. Online ordering has become essential for the hospitality industry. MOBI helps bridge that gap, enabling businesses to maintain their brand and customer experience while providing a seamless digital platform for ordering and payment,” adds Hautot. 

About the MOBI Index: The MOBI Index leverages data from over 12.5 million orders across 1,715 hospitality businesses since 2018 to provide valuable insights into economic and industry trends. MOBI’s data-driven approach sheds light on the underlying factors affecting the economy, offering crucial information for policymakers, businesses, and the general public.‍

About MOBI: Founded in 2010, MOBI is the market leader in mid-market enterprise hospitality technology in Australia, New Zealand, and Canada, processing over $500 million in customer transactions. With a presence in more than 3,000 restaurants and hospitality businesses, MOBI’s enterprise-grade solutions focus on helping clients increase revenue, enhance customer experience, and regain control of their customer relationships. Originally an online ordering solution, MOBI has expanded its offerings to include branded storefronts, mobile apps, AI-driven guest experiences, white label delivery, marketplace order aggregation, and more than 120 powerful integrations.