Advancing Your Priorities: Premiers’ Meeting + New Q2 Insights Report
Last week, I attended the official reception kicking off the annual summer meeting of provincial Premiers in Charlottetown, at the invitation of the host, Premier Rob Lantz—a welcome recognition of the important role Canada’s restaurant industry plays in the national economy. The event provided an excellent opportunity to engage directly with Premiers from across the country and continue advancing Restaurants Canada’s advocacy on behalf of our industry.
That industry recognition is well deserved. As Canada’s fourth largest private sector employer, providing jobs for 1.2 million Canadians, purchasing more than half of Canada’s agricultural production and contributing $26 billion in taxes annually, our industry’s success has implications that extend well beyond restaurants themselves.
My discussions with Premiers reflected both the issues unique to restaurant operators in individual provinces and the broader pressures affecting the industry nationally. Across those conversations, rising operating costs and shrinking profit margins remained central themes, with costs continuing to outpace revenue growth and limiting restaurants’ ability to invest and expand. Persistent labour shortages in rural, remote and tourism regions are adding another layer of pressure, making it harder for restaurants to fully serve their communities and support local economies.
I came away encouraged by the depth of my discussions with the Premiers, which helped to reinforce the need for smart and practical policy solutions to ensure restaurants can invest, hire and grow.
While in Charlottetown, I also appreciated the opportunity to meet with local Restaurants Canada members to hear firsthand about the opportunities and challenges they are experiencing in Prince Edward Island. Those conversations are essential, ensuring our advocacy remains grounded in the day-to-day realities of operators in communities across the country.
U.S. announces new tariffs on Canadian products
Last week, the U.S announced new 50% tariffs on a broad range of goods, including products that were protected under CUSMA, to come into effect on August 19. The restaurant industry is not directly targeted by these tariffs; however, restaurants could be impacted depending on how this latest round of the tariff war evolves, including any retaliatory measures the Canadian government may be considering.
Restaurants Canada is engaging with federal officials and had the opportunity to participate in an emergency round table discussions with the Department of Agriculture to ensure the government understands the potential impact on Canada’s $125 billion restaurant industry. In those discussions, we are emphasizing the significant challenges our industry experienced during the last round of retaliatory tariffs and reinforcing that increased costs and administrative burdens create unnecessary pressure on restaurant operators already facing tight margins. We will continue monitoring the situation and keep you updated.
Q2 Quarterly Report: Rising operating costs continue to erode profitability
Last week, Restaurants Canada released its latest Quarterly Report. The findings highlight a growing disconnect between sales and profitability, with rising operating costs continuing to outpace revenue growth, reinforcing that creating a stronger investment climate remains essential for our industry’s long-term success. Despite these challenges, restaurants continue to be a major driver of Canada’s economy, a major youth employer, and the country’s leading source of first-time jobs, demonstrating the importance of our sector. The report also provides clear evidence to support our ongoing advocacy for policies that improve affordability for Canadians while enabling restaurants to reinvest, grow and create jobs.
The Quarterly Report is available exclusively to Restaurants Canada members. Access your copy here.
Direct-to-consumer interprovincial alcohol sales agreement
During the Premiers’ meetings in PEI, an agreement among nine provinces (excluding Quebec) was announced to allow direct-to-consumer sales of alcoholic beverages across provincial borders for personal use from participating breweries, wineries and distilleries in other participating provinces.
While the agreement demonstrates continued progress in the move to eliminate long-standing interprovincial trade barriers, Restaurants Canada is disappointed that restaurants continue to be barred from offering many of those same Canadian products to their customers. Canada’s restaurant industry serves 23.7 million customers every day, making restaurants one of the country’s largest marketplaces for Canadian wines, beers, ciders and spirits. Allowing restaurants to source products directly from producers across Canada would help Canadian beverage manufacturers reach millions more consumers while giving diners greater access to Canadian products.
We will continue to advocate for the inclusion of restaurants in internal trade reforms to unlock the full economic potential of Canada’s restaurant industry.
Webinar: Smart Serve, AGCO & Alcohol Service Compliance
Join Restaurants Canada and Smart Serve Ontario for an interactive webinar, Smart Serve, AGCO & Alcohol Service Compliance, on Wednesday, July 29 at 2 PM ET. Created specifically for Ontario operators, this session will answer the questions you’re facing every day. We’ll cover Smart Serve certification requirements for different roles, common AGCO compliance pitfalls, operator responsibilities, and practical strategies for maintaining compliance—even during staffing shortages and high employee turnover.
With gratitude,
Kelly Higginson
