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Record high inflation is having a damaging impact on the foodservice industry.

Inflation has driven up the costs of everything in a restaurant operation, making it nearly impossible to recover from pandemic debt and run a profitable food service establishment.  Governments at all levels continue to raise taxes and fees and increase red tape. At Restaurants Canada we are advocating for governments to do more than just not increase taxes and fees, but to lower the costs to do business and help operators continue to serve our communities.

Cost Relief
Fast Fact 1

Restaurants Canada, together with our industry partners, successfully lobbied the federal government forgo scheduled inflation increases on Federal Alcohol Excise Tax and instead freeze the increase at 2% for three years. This results in a combined annual 10% reduction in the tax.

Fast Fact 2

Restaurants Canada successfully lobbied to have the pizza mozzarella discount increased to 15%. This results in hundreds of thousands of savings for restaurants that use this product.

Fast Fact 3

Our Advocacy, as part of a collaborative effort on the Carbon Tax, will see $2.5 billion returned directly to small and medium-sized restaurants in the form of a direct payment from the Canada Revenue Agency.

How Cost Relief will have a massive effect on our members

Restaurants Canada advocates for cost relief because it saves restaurants. More than half of restaurants in Canada are not making a profit and bankruptcies are at historic highs. The industry is challenged right now but governments, at all levels, can help. The government relations professionals at Restaurants Canada are advocating for multiple cost cutting measures to protect restaurants, our economic impact, and community gathering places.

Our Recommendations

Recommendation 1
Reduce Employment Insurance and CPP premiums

The restaurant industry is labour intensive and the fourth largest private sector employer in Canada. A lowering of payroll taxes, like EI and CPP will have a disproportionately positive impact on restaurants than other industries. The federal government addressed premiums in 2013 as a way to help small and medium sized business. Restaurants Canada is pushing the federal government Reducing premiums in 2025 makes even more sense today.

Recommendation 2
Increase licensee discounts for alcohol

Restaurants Canada’s long-standing lobby to reduce the costs of selling alcohol has had many successes thanks to our biannual Raise the Bar report comparing provincial liquor regulations. This year Raise the Bar is being revamped and elevated for more impact. We are advocating for greater discounts and encouraging more provinces to move to wholesale pricing for our industry. Given the challenges of the industry, increasing discounts is an easy way for provincial governments to help.

Recommendation 3
Dairy and Poultry Price Setting

Inflation and the cost of production are causing significant upward pressure on the price for dairy and poultry. Restaurants Canada is running campaigns, lobbying and pressuring the government appointed boards responsible for setting the price of dairy and poultry. Given rising food costs, this initiative has been given a high priority.

Related Resources


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