Food & Drink

Why Fast Food Is Expensive In Canada?

  • Last Updated:
  • Oct 28th, 2013 6:34 pm
Member
Apr 1, 2013
439 posts
77 upvotes
BC
Most of the fast food here are run by franchise, that adds a significant cost to the food. If you eat at shopping mall food court, mall management takes another big cut on profit. If you pay $9 for a fast food meal, a portion of it goes to franchise fee, another portion goes to land lord as profit sharing.

Consider expensive fast food here is a blessing in disguise. Fast food is high in fat, high in sodium, high in sugar, they are bad for you.
[OP]
Deal Fanatic
User avatar
Aug 27, 2012
5502 posts
798 upvotes
Toronto
gh05t wrote:
Oct 7th, 2013 12:12 pm
Higher standard of Living in Canada.

I heard Gin is pretty cheap back in the Phillipines too.
alcohol is cheap in philippines, people drink outside small retail stores everyday, its normal.
Deal Expert
User avatar
Jan 27, 2004
41090 posts
4878 upvotes
T.O. Lotto Captain
test9251 wrote:
Oct 6th, 2013 10:50 am
i came from philippines, i noticed that the price of fast food here is double than the price back in philippines? any explanation?
Well its double the price because the Philippine's is considered a developing nation... One with a GDP per capita that is over 10 times lower then Canada...
That would explain for the differences in cost of living.
Things are cheaper in the Philippines because many people live on only a few dollars a day. Many depend on sustenance agriculture to survive. Not to say there aren't people in urban centers who enjoy a "western" standard of living. But for the most part the quality of life is no where near the standards in Canada. And thus the cost of living is reflected by that... e.g. You can't expect a person who makes maybe $500/month to pay $5.99 for a cheese burger + fries.
Deal Expert
User avatar
Jan 27, 2004
41090 posts
4878 upvotes
T.O. Lotto Captain
lurkerfred wrote:
Oct 6th, 2013 11:06 pm
You might want to read this

http://www.economist.com/content/big-mac-index
That's an interesting point in the comment section...

"Economists don't understand that the same burger means different things in different countries. In some countries, McDonalds are upscale restaurants that represent western life style, while in some other countries, they're just unhealthy fast food. They are fundamentally not the same value."

I recall a story my partner told me... She mentioned her experience eating at Pizza Hut when she visited as a child. She recalled it being a "upper class" dining experience where a host opens doors for you and attendants dry your hands in the rest room with towels!

That was kind of a trip for me to hear... Because to us its just a greasy pizza for us to indulge in. :lol:
Deal Expert
User avatar
Jul 22, 2006
21648 posts
2369 upvotes
It has to do with minimum wage, taxes etc etc... Fast food prices have gone up a lot.
[OP]
Deal Fanatic
User avatar
Aug 27, 2012
5502 posts
798 upvotes
Toronto
bobmanw wrote:
Oct 6th, 2013 11:29 am
+1 :)

But i think one of the main reason is that the standard of food is different and more strict. It cost more to grow food with more control on the method; less pesticides, less chemicals, more inspections, less biotech seeds, less time for growth with the short seasons, less subsidies and lobby for the companies behind fast food.
https://www.facebook.com/photo.php?fbid ... =1&theater
Newbie
Dec 15, 2011
25 posts
Edmonton
Fast food is so expensive in Canada.
Way cheaper in the US.
Do you live in Canada?
Deal Fanatic
Jan 18, 2003
5340 posts
1219 upvotes
Mississauga
Mcdonalds...

20 piece nuggets...

Usa... $5

Canada. .. at least $12+

Lesson: make sure you eat nuggets when you are in the states. ..
Member
Aug 18, 2011
445 posts
113 upvotes
Brossard
Ducky wrote:
Oct 18th, 2013 6:34 pm
Mcdonalds...

20 piece nuggets...

Usa... $5

Canada. .. at least $12+

Lesson: make sure you eat nuggets when you are in the states. ..
dumbest lesson of the day.

DONT EAT AT McDonalds, EVER !

People are amazing...
Deal Addict
Jan 24, 2004
1708 posts
48 upvotes
Toronto
just like everyone has been saying the labour costs are lower in the philippines. also rent is cheaper along with electricity, uniforms, ingredients for cooking, appliances, even renovating the restaurant is cheaper there. you add all that up, its going to be cheaper there. here's a question, why is starbucks the same or more expensive in asia where labour costs are cheaper than in canada. i think a grande frap starts at 6 bucks canadian. in china a venti frap is 6.5 bucks canadian.
Deal Guru
Sep 2, 2008
10891 posts
1031 upvotes
test9251 wrote:
Oct 6th, 2013 10:50 am
i came from philippines, i noticed that the price of fast food here is double than the price back in philippines? any explanation?
Of all the things in the Philippines, fast food is the only thing you noticed that is more expensive? really?
Sr. Member
Dec 20, 2006
572 posts
35 upvotes
Ottawa
1337rice wrote:
Oct 7th, 2013 6:04 am
The wage standard is different, as well as currency conversion. Here's an example:

Ontario minimum wage: 10.25
Big Mac meal: $7.49(?)+tax = $8.46
You literally don't even have enough money to take the bus home...

Whereas if you take your 10.25, convert it to Hong Kong Dollars...you get $77.03HKD
Big mac meal in Hong Kong: $21HKD
You can literally feed yourself from breakfast, lunch, AND dinner, and you would still have enough money to take the bus or subway back home with change.
Too bad Hong Kong's minimum wage isn't $77/hr...it's more like $30/hr which is an equivalent of $4 CAD/hr.
Just got back from Hong Kong.

No need to take a bus or subway since McD's delivers for free 24hrs a day. Also, when you upsize your fries you get a honey BBQ shaker for your fries.
Deal Addict
Jul 11, 2010
2959 posts
137 upvotes
Higher cost of doing business the bulk of which includes rent, labour, cost of food and franchise fees. Demand plays a factor as well.
Deal Fanatic
Sep 16, 2004
8301 posts
1314 upvotes
Toronto
Rainne wrote:
Oct 19th, 2013 10:30 am
Higher cost of doing business the bulk of which includes rent, labour, cost of food and franchise fees. Demand plays a factor as well.
This. Plus less competition compared to the US off course.

Don't negate the convenience factor though.

Ever seen Convenience store prices compared to 9to 5 businesses.

Same principle with fast food and I imagine convenience accounts for a great deal of the profit on fast food.

The fast food eater would other wise have had to go to the supermarket, buy the raw materials and cook the meal from the ground up.

Microwaveable meals are somewhere in between the two extremes and seems to have a lower convenience value compared to fast food as it still needs to be bought, taken home and microwaved.
Member
Jun 14, 2012
401 posts
36 upvotes
taxes are high, business pay a lot compared to an individual(most people don't pay much)
mall = % of overall sales goes to owners
food is costlier
minimum wage is higher than some parts in the states
other small things that go unnoticed like better ingredients for some chains vs state owned ones

Top