Speaking to local newspaper Vancouver Sun, Bev Koffel explained that it was her husband who turned down their booking when the couple's security team called the restaurant.
"They said 'How did you figure out who we were?' And I said 'It wasn't too hard'," she recalled.
Yet despite having to turn down their request, she hopes the Duke and Duchess of Sussex enjoy their break.
"Let them have their peace and quiet. For us to be so lucky to have them in the area, how lucky is that?" she said. "I wish them all the privacy they can possibly get. They deserve it."
Buckingham Palace confirmed that the parents skipped royal tradition this festive season in favour of Canada via an official statement which read: "The decision to base themselves in Canada reflects the importance of this Commonwealth country to them both."
"Whilst this email confirms the country they are taking their family time in, for security reasons we will not be releasing any further details and request that their privacy is respected."
The nation famously holds a special place in their hearts, as Prince Harry has visited Canada a number of times in the past while Meghan Markle called Toronto home for seven years during filming for hit Netflix series Suits.
Prime Minister Justin Trudeau welcomed the family-of-three to Canada, as he took to Twitter to write, "We're all wishing you a quiet and blessed stay in Canada. You're among friends, and always welcome here."
Although Harry and Meghan opted out of the royal family's traditional pilgrimage to St Mary Magdalene in Sandringham, the Cambridge family stole the headlines in their place.
Most notably, Prince George and Princess Charlotte delighted royal fans by making their Christmas Day walk debut alongside their parents this year.