Hockey is more than just Canada’s favourite sport. It can also be good for business, especially as many consumers have frozen spending at places like restaurants and bars, experts say.
With many cutting back on expenses amidst fears of a recession, three Canadian teams making deep playoff runs could help spur a boost in consumer spending at venues like restaurants and bars if past playoffs are any indication.
The playoffs could not have come at a better time for the business, said Milena Stanoeva, spokesperson for Restaurants Canada.
“We definitely see a playoff effect for restaurants when Canadian teams do well, especially around the arenas that where they’re playing,” she said.
For the first time since 2004, three Canadian teams have made it to round two of the Stanley Cup playoffs. Aside from hoping that one of these three beloved teams will end Canada’s championship drought, businesses are also hoping this gets customers to spend more money downtown.
Consumer confidence in Canada has plunged since U.S. President Donald Trump threatened Canada with tariffs, data from the Conference Board of Canada says.
“The tariffs, the trade war, the threats and the uncertainty of it all have definitely taken a hit on consumer confidence,” said Tu Nguyen, economist at RSM Canada.
This has been largely due to people’s fears over losing their jobs, Nguyen said.
“People will have to pay their rents and their mortgage and groceries regardless. Those would be the priorities, and they will cut things where it’s possible to cut, such as eating out or traveling or entertainment,” she said.
“The fact that the three teams have made the playoffs definitely will have an impact on the local economies of Toronto, Winnipeg and Edmonton,” Nguyen said.
The end federal government’s GST holiday and consumers pulling back spending amidst Trump’s trade war has impacted restaurant sales.
“One of the first things that people cut from their budgets is going out to restaurants or getting takeout. So, it is very concerning for our members,” Stanoeva added.
Puneeta McBryan, CEO of Edmonton Downtown Business Association, said businesses in downtown Edmonton have felt the pinch.
“I think there’s been some fear among some of our small businesses about consumers making the decision to not buy American anymore when we already have some American products on shelves, which our small business has already paid for,” she said.
“The way that hockey takes over (Edmonton) during the playoffs is unlike what you would see in any other city,” said McBryan.
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“All of the pedways that go over top of the roads are all painted for the playoffs. Building facades are painted orange and blue. You can’t go anywhere without seeing and feeling that we’re in the playoffs. It’s such a boost for our economy. It’s wild,” she said.
Talk to a Toronto Maple Leafs fan or a Winnipeg Jets fan and they will tell you that their respective cities, too, are in the grips of hockey mania this week.
Silver Heights restaurant in Winnipeg has been televising Jets games and owner Tony Sawicki said they’ve been able to order more produce and give more consistent shift to workers.
“It’s been fantastic for all our staff,” he said.
“When they (the Jets) score, the whole place roars. I’ve got to take the glasses off the shelves just in case.”
According to Moneris data, when the Toronto Maple Leafs made it to the second round of the NHL playoffs in 2023, spending rose by 126 per cent near Scotiabank Arena and 113 per cent across the city.
Edmonton’s ICE district saw spending more than triple (214 per cent) when the Oilers made it to the Stanley Cup Finals last year, the report shows.
Even one Canadian team standing can help spending all over the country. The Oilers finals run led to spending increases of 16 per cent across Canada, Moneris data showed.
McBryan said she estimates over 25,000 people to be in and around downtown Edmonton on game night.
“When you walk around downtown Edmonton during the playoff run, you see TVs on most patios downtown now so that they could play playoff games on the patio,” she said.
It’s not just local traffic, big NHL franchises like the Oilers, Leafs and Jets also draw supporters from fans from out of town. Oilers fans from northern Alberta, B.C., Yukon and the Northwest Territories are making a beeline to Edmonton, she said.
“Right now, you cannot get a hotel room in downtown Edmonton when we have home games. It is actually proving to be a bit of a logistical problem for conference organizers.”
It’s not just businesses around Rogers Place or bars screening games that reap the benefits of a deep playoff run.
“They’re (fans) walking around, they’re grabbing coffee and breakfast and they probably walking around going shopping. They might head over to West Edmonton Mall,” she said.
With the Leafs and the Oilers up in their respective series and the Jets playing a tight series, fans are hoping for all Canadian teams to go deeper into the tournament.
“The further in the team goes, the better it is for the economy. We’ve seen how the Super Bowl in the U.S. affects spending,” Nguyen said.
The average American spends US$91.58 on Super Bowl-related expenses on the day of the big game, according to the U.S. National Retail Federation.
Data also shows that rivalries between Canadian teams are help boost business. Spending near the arena in Edmonton jumped by 233 per cent in 2022 when the Oilers played the Calgary Flames in Game 3.
Nguyen cautioned that the impact of the playoffs could be limited and localized. And given that Canada is still facing the effects of a trade war, Canadians may cut back in other areas.
But while the dollar amount might be relatively small in terms of contribution to the overall economy, Nguyen said large events like this one can help people come out of a spending glut.
“It helps lift people’s mood considerably and it helps consumer confidence in a way as well. It gives people a reason to celebrate. That is true for major sport events and as well as concerts,” she said.
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