Canadians Plan to Drink Less Alcohol and Power up Protein in 2026: Square

Why It Matters

The dual trends reshape revenue streams for cafés and bars, prompting menu innovation and pricing experiments. Operators that adapt to health‑focused demand and wage pressures can capture higher transaction values in a competitive market.

Key Takeaways

• 28% Canadians plan to cut alcohol consumption in 2026
• Non‑alcoholic drink sales up 4.3% while alcohol up 8.6%
• 80% cite health, 45% cite cost to cut alcohol
• Protein‑related coffee shop sales rose 35% YoY in early 2026
• Only 12% would pay hourly fee for café workspace

Pulse Analysis

The post‑holiday period is seeing Canadians re‑evaluate their drinking habits, with a Square‑derived survey revealing that more than a quarter plan to cut back on alcohol. Health motivations dominate, echoed by 80% of respondents, while nearly half are driven by cost savings. Retail data supports this intent: non‑alcoholic beverage sales nudged upward, yet alcoholic sales still posted an 8.6% increase, suggesting consumers are opting for moderation rather than full abstinence. For the hospitality sector, this nuanced shift signals a need to balance traditional alcohol offerings with a broader portfolio of low‑alcohol and non‑alcoholic options to retain price‑sensitive patrons.

Parallel to the alcohol trend, coffee shops are capitalising on a growing appetite for functional nutrition. Protein‑infused menu items surged 35% year‑over‑year in the first weeks of January, underscoring a consumer desire for better‑for‑you choices that complement daily caffeine rituals. Café operators can leverage this momentum by introducing protein‑rich add‑ons, such as fortified milks, nut‑based snacks, or protein‑packed pastries, which not only meet health goals but also lift average ticket sizes. The data suggests that wellness‑driven innovation is becoming a core differentiator in a saturated market.

While cafés explore new revenue levers, attempts to monetize table time have met resistance, with only 12% of Canadians willing to pay an hourly workspace fee. Meanwhile, labour costs remain a steady pressure point; average café wages rose modestly to $18.48 per hour, with regional variance—Vancouver leading at $19.37 and Regina lagging at $15.85. Operators must therefore optimise staffing efficiency and consider menu pricing that reflects both wage realities and consumer price sensitivity. By aligning health‑focused offerings with prudent cost management, cafés can navigate the evolving landscape and sustain profitability in 2026.