Affordability Front and Centre in RC’s National Media Coverage
I was pleased to visit Vancouver in late January to send off Western Canada VP Mark von Schellwitz into retirement. I took the opportunity to meet with a number of members while in town, including at our members’ reception, and chat about the current climate, their challenges and needs. I was thrilled to see a number of Vancouver hospitality legends at the reception who have certainly made an impact on the sector.
A reminder to all our members that we have multiple opportunities coming up for you to connect directly with our Government Relations team and share your feedback or concerns.
Virtual Member-Only Townhalls: Register today
You can now register for our next round of virtual member-only townhalls. In this upcoming set, we will share the latest data and trends driving the foodservice industry, a first look at our workforce campaign launching on February 23, and key regional policy updates.
We are trying out a new format that invites greater engagement and will hopefully lead to some lively conversations. Your participation is invaluable to Restaurants Canada’s advocacy and policy directions.
A recording of the sessions will be shared with all registrants, in case you can’t make the live townhalls. Please check your inboxes for the registration details, as these are Members-Only events and not open to the public. The schedule is as follows:
- Manitoba & Ontario: Tuesday, February 17, 2025 | 10:00–11:00 AM CT / 11:00 AM–12:00 PM ET
- Saskatchewan, Alberta & British Columbia: Thursday, February 19, 2025 | 10:00–11:00 AM PT / 11:00 AM–12:00 PM MT / 12:00–1:00 PM CT
- Atlantic Canada: Thursday, February 26, 2025 | 10:00–11:00 AM AT / 10:30–11:30 AM NST
RC in the news
January was an active month for media engagement, with the RC team featured in coverage across the country. The team participated in over 60 media interviews, resulting in more than 1,000 media mentions. Topics ranged from business closures to immigration, but were very much focused on the affordability challenges facing Canadians that immediately impact their day-to-day quality of life and our sector.
Tipping practices are changing, and many operators are feeling the impact.
In light of the news last week of major service disruptions and account discrepancies associated with the tip management platform Everyday Payments (formerly AnyDay, also known as XTM Inc.), we are sharing some upcoming resources and information sessions to help you manage tips.
Atlas is holding a session at RC Show 2026: The Hidden Cost of Tipping: What Most Operators Are Getting Wrong (and Paying For) (Monday, March 9, 12:00–12:45 PM, Business Hub – Explore Stage). To register: click here. The session will break down today’s most common tipping models and outline how automation can reduce risk, manage labour costs, and ensure tips are structured correctly.
Atlas will also be continuing this important conversation with Restaurants Canada through an upcoming webinar. Members can watch a previous session now to learn how mismanaging tips can cost over $30,000 for every $1M in sales.
FEDERAL UPDATE
From Matt Triemstra | Vice-President, Federal Affairs
Beef and Veal Tariff Quota Advisory Committee
Our industry purchases just over $5 billion in fresh/frozen beef and veal annually, representing the single largest commodity it purchases, and accounting for 16% of all food/beverage purchases. When beef prices rise, this impacts already razor thin margins. To that end, Restaurants Canada was invited by Global Affairs Canada (GAC) and Agriculture and Agri-Foods Canada to a recent Beef and Veal Tariff Quota Advisory Committee Meeting (TQAC).
The primary purpose of this meeting was to discuss the domestic market situation and the administration of the supplemental import policy for beef and veal - Notice to Importers No. 855 – Beef and Veal Supplemental Imports. Given the last meeting took place in 2015, this was a more than timely discussion and Restaurants Canada was pleased to represent our industry. Committee participation is limited to key stakeholders, which includes representatives from the Canadian Meat Council (CMC) and the Canadian Cattle Association (CCA).
TQAC members were in agreement that the interpretation of the pricing requirement should be updated to use U.S. pricing information for goods being imported from the same country or region as the goods in the supplemental application. It was also agreed that GAC should continue to publish a domestic suppliers list as part of the supplemental import policy, with input from CMC and their members. Finally, participants agreed that the intent of section 6.3 of the supplemental import policy is to prevent a back door to the U.S., and to ensure Canadian processors are on an equal footing with U.S. counterparts.
Restaurants Canada will solicit feedback from our members and continue to engage with our producer industry colleagues.
Enhanced GST Credit
On January 26, the federal government announced an enhanced GST credit to address food affordability, and new investments in Canada’s food production and supply chain infrastructure.
While this announcement is not the exemption for all food from the GST which our industry has been seeking, it is a move in the right direction in taking action on escalating food costs. With support from the Conservative Party, the new Canada Groceries and Essentials Benefit (Bill C-19) has already been passed at all stages in the House of Commons and will now be sent to the Senate for consideration and ultimately royal assent. We will continue to work with the government on broader affordability measures, including exempting all food from GST.
Conservative Convention 2026 – Update
Pierre Poilievre was reconfirmed as Leader of the Conservative Party of Canada, receiving the support of 87.4% of delegates at the convention in Calgary in late January.
We had previously flagged that convention delegates would be debating policy resolutions, which included two advocating for the elimination of the Temporary Foreign Worker Program. We were pleased that neither of these submissions were adopted by the convention, building on Restaurants Canada’s direct advocacy to the Leader of the Opposition and other members of the Conservative caucus.
SUSTAINABILITY UPDATE
From Jillian Rodak | Vice-President, Sustainability
The Federal Court of Appeal released its decision on the Federal Plastics Ban on January 30th, concluding that the ban on the six single-use item categories will be upheld, and the federal government can continue regulating plastics.
The decision overturned all key findings of the Federal Court and confirmed that listing plastic-manufactured items as toxic under the Canadian Environmental Protection Act (CEPA) is reasonable, lawful, and constitutional.
Given that the federal ban has been in place since 2022, the court’s decision does not represent a new direction in federal policy. That said, it is entirely likely that the government may now consider further regulation in this area. We are monitoring the responses of the government and other stakeholders, and we will be assessing the potential impacts of this decision for our industry and keep you informed.
ATLANTIC CANADA UPDATE
From Janick Cormier | Vice-President, Atlantic Canada
Restaurants Canada met with Atlantic Liquor Regulators (ALAC) in January to discuss the challenges facing our industry. Topics included statutory and regulatory impediments to efficient operations: (the ability to batch cocktails; allowing minors to serve alcohol as they can in Nova Scotia; allowing minors in an establishment while there is entertainment; and the ability to transport liquor from one establishment to another owned by the same licensee).
The conversation was productive and, while this was just an introductory meeting, we will develop this working relationship to identify solutions that will ultimately help members’ bottom lines.
New Brunswick: Immigration
On February 3, the government released its immigration guidance for 2026. The province will continue to exclude our industry from both the New Brunswick Provincial Nominee program (NBPNP) and the Atlantic Immigration Program (AIP) immigration streams. This news is disappointing, but not surprising, and will continue to have a significant negative impact on New Brunswick’s foodservice businesses and the communities they serve.
Restaurant Canada’s team, both in Atlantic Canada and Ottawa, will continue to urge all levels of government to continue to work with the foodservice industry to address its labour needs.
New Brunswick: Budget and State of the Province
On January 29, Restaurants Canada Atlantic Canada VP Janick Cormier was in Fredericton to attend this year’s State of the Province address. Premier Holt was clear that difficult decisions are coming for Budget 2026 to address New Brunswick’s fiscal situation and we will report to members with details and how they impact our sector.
The State of the Province was a good opportunity for Restaurants Canada to have discussions with the government, MLAs and other stakeholders about our industry. Labour shortages and the need for increased immigration access was a major topic of discussion.
Prince Edward Island
On Saturday, PEI’s Progressive Conservatives elected their new permanent leader, and the next premier of PEI. Rob Lantz won the leadership with 53.1% of the vote and will be officially sworn in today.
Premier Lantz has not ruled out an early election this spring, but has also said that he doesn’t believe Islanders are ready to go to the polls just yet. The next election is currently scheduled for 2027.
As he took on the role on an interim basis following Premier King’s resignation last year, we expect a continuation of his government priorities.
CENTRAL CANADA UPDATE
From Kris Barnier | Vice-President, Central Canada and the North
Ontario: Crime / Public Safety
Public safety remains a top priority. Restaurants Canada is in regular contact with the Premier’s Office, the Solicitor General, and other key offices to advance measures that protect patrons and hospitality workers. This week, Restaurants Canada will take part in meetings with government and stakeholders as they assess public safety challenges facing hospitality and retail workers and consider solutions.
Ontario: FIFA World Cup 2026
Toronto will host six matches between June 12 and July 7 at BMO Field, with teams training at Centennial Park. We expect to share more details later this week on related events, transportation planning, traffic impacts, and branding/marketing rules for businesses.
Ontario: Alcohol Pricing
Ahead of the April 1 changes to alcohol pricing and LCBO markups, Restaurants Canada remains actively engaged with decision-makers, including an upcoming meeting with Finance Minister Peter Bethlenfalvy. Our focus is lowering alcohol procurement costs and ensuring fair treatment for Ontario licensees.
Manitoba: Business Security Rebate Program
Applications remain open for rebates of up to $2,500 per restaurant location. Owners with multiple locations may apply per site (e.g., eight locations = up to $20,000). Funds can be used for crime-related repairs or eligible security investments. Apply here.
Manitoba Liquor and Lotteries Discount Changes
Effective April 1, on-premise licensees will receive a 13.75% discount on ready-to-drink (RTD) beverages, while the beer discount will decrease from 14.55% to 13.75%. We have raised concerns that many members may be worse off due to limited RTD sales and are urging the government to extend licensee discounts to spirits and wine.
WESTERN CANADA UPDATE
From Cheryl Maitland Muir | Vice-President, Western Canada
Provincial Budget Season
Western Canada is entering a busy six-week budget period, with budgets coming in British Columbia (February 17), Alberta (February 26), and Saskatchewan (mid-March, date TBA). Cheryl Maitland Muir, Vice President, Western Canada, will attend each budget to gather early insights and provide commentary on behalf of our members.
As governments—particularly in British Columbia—navigate challenging fiscal conditions, Restaurants Canada will be focused on measures that reduce business and input costs, improve access to labour, and simplify regulatory requirements. We will also be looking for initiatives that leave more money in households’ pockets. Watch your inbox for postbudget updates and Restaurants Canada’s initial reactions.
Alberta Engagement on Health Inspection Public Grading
On February 3, Restaurants Canada participated in a small virtual roundtable with Alberta Health Services (AHS) to discuss the potential introduction of a public-facing food safety grading system or a voluntary excellence program.facing food safety grading system or a voluntary excellence program.facing food safety grading system or a voluntary excellence program.
We emphasized that food safety is our members’ top priority and is directly tied to the success of their businesses. Restaurants Canada is open to working with the Ministry to strengthen the health inspection system and improve food safety outcomes. At the same time, we raised concerns about the current proposals, noting the potential for added complexity and risk for restaurants without clear evidence of improved outcomes.
AHS plans to survey restaurants across the province in the coming weeks. Restaurants Canada will remain closely engaged, and we encourage members with feedback or suggestions on improving Alberta’s health inspection system to contact Cheryl directly.
BC Member Reception
Thank you to everyone who joined us in late January to celebrate Mark von Schellwitz’s career with Restaurants Canada and to welcome Cheryl Maitland Muir, our new Vice President of Western Canada.
The event was a wonderful opportunity to connect with Restaurants Canada leadership, including current and past board members, as well as CEO Kelly Higginson, Corporate Secretary Carol Pantaleo, and Chief Economist Chris Elliott. Mark’s final day with Restaurants Canada was January 30.
Cheryl is now actively connecting with members and partners and engaging on key regional issues. She can be reached at cmuir@restaurantscanada.org.
With gratitude,
Kelly Higginson
