For decades, economic slowdowns followed a predictable script in foodservice. As household budgets tightened, consumers traded down. Full-service restaurants suffered. Fast food thrived. Value, convenience and predictability made quick-service restaurants (QSRs) the natural refuge in uncertain times.

That script no longer holds.

CHARLEBOIS: The economy is sluggish. So why is fast food struggling? Back to video

New data from Restaurants Canada and Statistics Canada show that while overall foodservice sales are still growing in nominal terms, the story changes once inflation is removed. Real growth — what actually reflects volume and traffic — is now negative for quick-service restaurants. In other words, Canadians are spending more at fast-food chains, but they are buying less.

This is not a cyclical blip. It is a structural shift.

The core issue is simple: Fast food has lost its value proposition. Over the past few years, QSR operators have aggressively raised prices to offset rising input costs — labour, energy, ingredients, and logistics. In doing so, they have crossed a psychological threshold.........

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