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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 lower the cost of doing business and help operators continue to serve our communities. 

Cost Relief

Restaurants Canada was able to secure the GST/HST Holiday and ensure the foodservice industry was included, resulting in an estimated 8.6% in additional foodservice sales during the two-month period.

Restaurants Canada successfully lobbied for a three-year freeze on federal alcohol excise tax at 2%, resulting in $24M in savings for the industry.

Restaurants Canada increased the pizza cheese discount from 13.5% to 15%, resulting in $5.8M in savings.

Pre-Budget Consultations – August 2025

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Recommendation 1
Reduce Employment Insurance and CPP premiums

The restaurant industry is labour intensive and the fourth largest private sector employer in Canada. Lowering payroll taxes, like EI and CPP, will have a disproportionately positive impact on restaurants than other industries. The federal government has reduced premiums before to help small and medium-sized businesses. Reducing premiums makes even more sense today. 

Recommendation 2
Increase licensee discounts for alcohol

Restaurants Canada is advocating for greater discounts and encouraging more provinces to move to wholesale pricing for our industry, following successes in Ontario, Atlantic Canada and other regions. Given the challenges of the industry, increasing discounts is an easy way for provincial governments to help. 

Recommendation 3
Eliminate alcohol excise tax escalator 

Restaurants Canada is urging the federal government to permanently eliminate the automatic alcohol excise tax escalator to help restaurants manage costs and protect affordability for consumers. 

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