A Guide to Restaurant Monthly Expenses in Canada

Running a restaurant in Canada? You already know the drill — razor-thin margins, costs that seem to change weekly, and customers who expect the world. Whether you're flipping burgers in Vancouver or serving up brunch in Montreal, keeping track of where your money goes isn't just smart business — it's survival.

We've put together a breakdown of the eight biggest expenses hitting Canadian restaurants right now, plus some practical ways to get them under control without sacrificing what makes your place special.

1. Food and Beverage Expenses

Tracking food costs is a top priority for Canadian restaurateurs. With inflation and supply chain instability impacting everything from cooking oil to fresh produce, accurate costing is critical.

Modern operators are leveraging tools to stay on top of ingredient fluctuations and build out recipe and plate costing strategies. Once you’ve mastered consistent ingredient pricing, you can set menu prices that reflect your ideal food cost percentage.

According to the Toast Consumer Preferences Survey 2025, where 200 Canadian diners were surveyed about restaurant pricing and value, food costs are seen as the number one cost challenge by 46.5% of Canadian diners.

2. Labour Expenses

Labour is typically the largest line item on a Canadian restaurant’s balance sheet. On average, operators allocate 10–20% of their budget to wages, payroll tax, and benefits, depending on the concept and province.

From chefs and bartenders to hosts and dishwashers, staff turnover and wage competition remain high. That’s why it's so key to stay on top of your restaurant’s monthly expenses to optimize shift patterns and meet legal requirements.

Toast Tip: Tools that support tip pooling and payroll integration are in high demand in Canada as operators streamline back-office operations.

3. Non-Food Product Expenses

Takeout’s not slowing down — and neither are the costs that come with it. Things like compostable containers, napkins, bags, and cutlery might seem small, but they add up fast. Smart operators in Canada are building these into their plate costs so they don’t end up quietly eating into their margins.

4. Equipment and Repairs

From fridges to fryers, equipment inevitably breaks down. Replacement costs are unpredictable, which is why preventative maintenance and a small monthly reserve fund are essential.

Many restaurants in Canada now dedicate part of their budget to tech-driven kitchen systems like Toast’s Kitchen Display Systems (KDS) to avoid downtime and speed up service.

5. Rent and Occupancy Costs

Whether you’re in Toronto, Vancouver, or Halifax, rent is one of the biggest fixed monthly expenses. In 2024, many Canadian operators allocated roughly 10% of their budget to rent and utilities, according to the Voice of the Canadian Restaurant Industry Report.

Other occupancy-related costs to factor in include:

• Property insurance

• Snow removal

• Building maintenance

• Equipment installation and upgrades

6. Utilities

Gas, electricity, water, and internet costs vary by season and province. Operators who use digital energy monitoring tools or negotiate balanced billing agreements with utility providers often avoid nasty surprises.

According to the Toast Consumer Preferences Survey 2025, 27% of consumers believe rent and utilities are the most damaging cost to restaurant profitability.

7. Marketing

Restaurants across Canada are diversifying their marketing mix — from social media ads and influencer partnerships to loyalty schemes and direct SMS/email campaigns.

Using automated marketing tools that integrate with your EPOS system helps you track campaign ROI and make smarter ad spend decisions.

8. Technology

Canadian restaurateurs now spend nearly as much on technology (10%) as on labour. Why? Because tech is driving the customer experience.

Common investments include:

• Online ordering and payments

• Inventory and accounting software

• Reservation and waitlist management

• Staff scheduling tools

According to the Toast Voice of the Canadian Restaurant Industry report, 1 in 4 operators are prioritising tech upgrades.

Fixed vs Variable Expenses: Know the Difference

• Fixed expenses stay the same each month — think rent, licences, insurance, and salaries.

• Variable expenses fluctuate based on customer volume or market trends — food costs, utilities, seasonal staffing.

Understanding which of your costs are flexible helps you respond to slow periods, adjust pricing, and keep control of margins. 

Final Thoughts

Running a restaurant in Canada isn’t easy — costs are rising, margins are tight, and the pace never lets up.

Not sure where to begin? Start by laying out your monthly expenses and spotting areas where you could be more efficient. Maybe it’s improving your stock tracking, tightening up your team’s rota, or having a fresh look at your lease. However small it seems, every dollar makes a difference.