The McVibes are off

Markets: JPMorgan said that a new cap on U.S. credit card rates, an idea being floated by Donald Trump, could hurt the U.S. economy, a warning that led to a poor day for financial stocks. This led to a drop in top Wall Street indexes and caused Canada’s main index to just barely dip into the red.  

It looks like McDonald’s has seen all the posts about how fast food prices are too damn high.

What happened: In an attempt to win back cost-conscious consumers who have cut McDoubles from their diet, McDonald’s Canada has locked in a year-long price drop to its McValue Meal menu, lowering the cost of the budget bundles from $5.99 to $5 flat. 

Why it matters: While this is good news if you like McD’s coffee (which, honestly, is pretty decent), it’s a rather bad sign for the wider restaurant industry. Cost-of-living concerns have forced diners to eat out less at every type of restaurant, not just fast food joints, but most eateries don’t have the purchasing power and flexibility to drop prices like McDonald’s does. 

Big picture: A new TD Bank report found that two-thirds of Canadians plan to pare back spending this year, up from 51% a year ago, and the top reported budget sacrifice was eating out. Under these circumstances, it’s sadly unsurprising that a new study projects 4,000 Canadian restaurant closures this year. 

Our take: Recession indicator is an overused term these days — and likely inaccurate as many project Canada to dodge a recession again this year — but the McValue menu price drop feels like it fits that descriptor. At the very least, it’s a sign of bad economic vibes.—QH

China to Canada: I scratch your back, you scratch mine. China reportedly plans to propose a deal to ease restrictive tariffs on Canadian canola exports in exchange for Canada backing off on Chinese EV tariffs. One person who isn’t a fan of the offer is Ontario Premier Doug Ford, who said he was “absolutely 100% dead against this.” (Bloomberg News) 

Speaking of automobiles, Trump had some harsh words for CUSMA. The U.S. president told reporters yesterday that the Canada-U.S.-Mexico Agreement (CUSMA) was “irrelevant” to him, and that the U.S doesn’t “need cars made in Canada… we want to make them here.” Not very inspiring words ahead of the trade pact’s mandatory review later this year. (CTV News)

Mark Carney met with coastal First Nations in B.C. Ahead of his China trip, the PM sat down with about five dozen First Nations leaders in Prince Rupert to discuss ocean protection and resource development projects, specifically regarding the waters around the protected area of the Great Bear Rainforest. The nations are against lifting B.C.’s oil tanker ban in service of a new pipeline. (Globe and Mail)

Suspect arrested in connection with Canada’s largest gold heist. Authorities arrested the alleged mastermind of the 2023 theft of 400 kilograms of gold from Toronto Pearson airport. The man was arrested just outside the airport (never return to the scene of the crime). Police are still seeking two suspects. (Bloomberg News) 

Netflix could sweeten its Warner Bros. deal. The streaming giant is reportedly reworking its offer to acquire Warner Bros. Discovery in order to move things along and fend off Paramount. One idea: making the deal an all-cash offer. (Bloomberg News) 

Supreme Court Justice Sheilah Martin will retire in the spring. The Justin Trudeau-era Supreme Court appointee is retiring on May 30, giving Mark Carney his first opportunity to select a judge for Canada’s top court. (CBC News)—QH

After losing tens of billions of dollars making clunky VR headsets that nobody wanted, Meta may have finally built a winning product.  

Driving the news: Meta is looking to potentially double the production of their AI smart glasses by the end of the year, as the once-niche wearable device starts to gain traction with consumers. 

Why it's happening: To put it simply, Meta has made the glasses look cooler (or at least less lame). New Ray-Ban and Oakley models are lighter, more practical, and look far more like a regular pair of glasses than the early iterations. 

Why it matters: CEO Mark Zuckerberg has been adamant that some iteration of these AI glasses will replace smartphones as the next mass market consumer device. We may not be close to that vision becoming a reality — and we might never be — but Meta has finally proven that this is actually a product people will go out and buy. 

Zoom out: Meta’s rivals are starting to hop on the bandwagon. Google has partnered with Gucci-owner Kering to build a pair of luxury AI glasses, while Apple is scaling back its wildly unsuccessful Vision Pro headset efforts to focus on its own smart glasses project.—LA

🤝 Meet Jen Agg. It’s hard to think of many restaurateurs who have had more of an impact on Toronto’s dining scene than her. Agg has scored hit after hit, with a knack for knowing what diners want before they do, from the revolutionary Black Hoof to her latest venture, General Public — recognized by Toronto Life as the town’s best new restaurant last year, and described by Agg as “part Narnia, part fancy British pub and part ’80s cocaine dream.” We asked her about the challenges facing restaurants, what makes a good restaurant, how she comes up with winning concepts, and more.

You’ve talked on your IG about how challenging it is to be in the restaurant business right now. What are the biggest challenges that you think most people aren’t aware of?

JA: Cost of operating is way up (are your groceries more expensive, well, so are ours) but that's just the tip of the iceberg, staffing, rent and upkeep is vastly more costly. And because our economy is currently so wobbly, revenue is down. Not a great combo, lots of restaurants will close in 2026.

What is the most important element of making a good restaurant? If it’s food, then what is the second most important element?

JA: Food isn't the most important. The food has to be good, but the service CANNOT be bad. The way you make people feel is what keeps them coming back. And if you can do it all in a nicely lit, beautiful room with the right music please, that would be preferred. (Right for the vibe, not necessarily right for me, although I would love it if it were!)

You read a lot about “wellness” as a trend, with people drinking less and going to bed early so they can do early morning workout classes and the like. Do you think people are having less fun these days?

JA: Yes, I do! I also eat well and exercise as religion, but I still like to have the wine kind of fun, and occasionally the martini kind. I suspect there will be a bit of pushback against all this wellness, as there always is with trends. And with the world as it is, maybe a drink isn't such a radically bad idea!

Read the full Q&A with Jen Agg on our website.

🏃 ~10,000. Calories that ultramarathoners can burn in a single day. However, a recent study found that after about six months, the athletes' bodies hit a metabolic wall and they are no longer able to burn that many calories without resting, regardless of their fitness levels. It's probably a good thing our bodies stop us from running 100 km races all year round.

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