It does not imply that. In fact, given that restaurant patronage has declined significantly in Canada, if they are more profitable it is likely that they are more profitable on volume.
Unless, perhaps, you think Canadians have traded going to restaurants with fasting?
Fair, although that shows the gross margin has declined. So why would gross margin fall, but net margin rise? I posit that it is likely that they can operate more efficiently when the customers buy more groceries.
But if people had an issue with Loblaw, why would they buy more groceries from them?
Unless, perhaps, you think Canadians have traded going to restaurants with fasting?