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Restaurants Canada

Help us bring an end to sales tax on restaurant meals!

June 9, 2025 Share on your social channels

We’re excited to officially launch our GST/HST campaign at foodisfood.ca, calling on the federal government to exempt all food, including restaurant meals, from sales tax!  

WE NEED YOUR VOICE!  

Help us bring an end to sales tax on restaurant meals! We need to get loud and call on government with one voice in order to draw as much support and attention to our cause ahead of the fall session in Parliament!  Take action now—sign and share our petition and spread the word on your social media. Together, we can push for real change. Canadians deserve affordability, and the time to stand up for our restaurants and the communities we serve is now. 

You can download a suite of animated graphics to use in your posts:

English Sharables
French Sharables

Our message is clear: food is food and should not be taxed. But more than that, removing the sales tax from prepared food would stimulate the economy, protect foodservice businesses and create jobs!  

Last week, we shared our latest economic analysis of the recent GST/HST holiday, which led to an 8.6% increase in foodservice sales, a 50% year-over-year decrease in restaurant bankruptcies, and the creation of 24,000 new jobs, just in the short 2 month period- more jobs than the previous 12 months combined. 

Based on this data, Restaurants Canada estimates that permanently removing the 5% GST on all food would lead to: 

  • Up to 80,000 new jobs (64,300 in foodservice and 15,700 spinoff jobs in related industries) 
  • 2,680 new restaurants 
  • $5.4 billion in tax savings to consumers 
  • $1.5 billion in additional tax revenue and EI savings for government 

GST has been incredibly challenging for the foodservice industry, as our main competitor—grocery stores—is largely exempt. When the GST was first introduced in 1991, real foodservice sales dropped 11%, as consumers shifted more of their food dollars to grocery stores. This led the foodservice industry to lay off 46,000 Canadians and employment growth in our sector slowed from an average of 31,135 jobs a year to just 17,387 jobs. 

Throughout the summer, we will be pushing our message out to Canadians and to the political audience on Parliament Hill, gathering signatures on our petition, and meeting with MPs to deliver the petitions and advocate for this measure. 

The GST/HST holiday showed us what our industry can accomplish if this unfair tax treatment of prepared food is amended. We now have the unique opportunity to convince government that this is the right investment at the right time—for the economy, for our industry and for Canadians’ quality of life. 

Together, I believe we can achieve it but we need your help!  

TAKE ACTION!

SUSTAINABILITY UPDATE

From Jillian Rodak | Vice President, Sustainability

June Sustainability Committee Meeting 

Last week, the Sustainability Committee met for a presentation from Egg Farmers of Canada and to discuss emerging sustainability developments at the federal, provincial, and municipal levels. A key focus of the discussion was the ongoing transition of extended producer responsibility (EPR) across provinces, particularly in Quebec and Ontario. Members also discussed growing municipal attention to industrial, commercial, and institutional (ICI) and food waste reduction initiatives, with updates on current consultations in Toronto, Edmonton, and Montreal. 

Restaurants Canada will continue to monitor relevant consultations and regulatory developments and will engage as new opportunities emerge to ensure the voice of the industry is represented. 

Proposed Amendments to Ontario Blue Box Program 

On June 4th, the Ontario government released a set of proposed amendments to the Blue Box Regulation and the Resource Recovery and Circular Economy Act for consultation. If passed, these changes aim to improve the affordability of the Blue Box program and respond to many of the concerns raised by Restaurants Canada and its members. 

Key proposed changes include: 

  • Improving transparency and cost disclosure to help producers better understand and manage fees; Producer Responsibility Organizations (PROs) would be required to provide more information, in addition to improved reporting on system design, operation, and costs.  
  • Enhancing data collection and oversight to ensure the program is effective and efficient. 
  • Delaying recovery targets by five years to allow more time for planning and infrastructure investment. 
  • Removing planned expansions, including for public spaces, to reduce future cost pressures, and focus on residential materials only. 

Consultations are now open: 

Restaurants Canada will be engaging in both consultations to represent the interests of our members and ensure your concerns are reflected in the government’s updated regulations. 

City of Toronto Long-Term Waste Management Strategy 

On May 26, the City of Toronto launched a public consultation on the next phase of its 2016 Long-Term Waste Management Strategy. The strategy will inform a ten-year (2026–2036) implementation plan to support the City’s zero-waste goal and, of potential impact to our industry, explores commercial waste, food waste, and reuse programs among other topics. The consultation process includes: 

Restaurants Canada will participate in these consultations to ensure members’ perspectives and operational realities are reflected in the City’s waste reduction plans. 

QUEBEC UPDATE

New French Language Obligations in Québec  

As of June 1st, 2025, new regulations under Québec’s Charter of the French Language introduce stricter requirements for the use of French in trademarks, public signage, and business operations. These measures are accompanied by significantly higher penalties for non-compliance. Restaurants Canada recognizes the complexity and cost these changes present to the foodservice sector and is actively working with partners to mitigate their impact. 

Key Changes Now in Force 

1. Trademarks 

  • Registered trademarks in a language other than French may continue to be displayed, but businesses are encouraged to register marks in Canada to ensure compliance. 
  • Trademarks that include generic or descriptive terms must now include a French translation of those terms. 

2. Public Signage 

  • French text must occupy at least twice the space of text in any other language. 
  • When using a trademark or company name in another language, French must remain clearly predominant. 

3. Penalties for Non-Compliance 

  • New daily fines apply: 
  • 1st offense: $3,000 to $30,000 
  • 2nd offense: $6,000 to $60,000 
  • 3rd and subsequent offenses: $9,000 to $90,000 
  • These fines are in addition to possible criminal penalties. 

4. Francization Requirements 

Businesses with 25+ employees in Québec must: 

  • Register with the Office québécois de la langue française (OQLF) 
  • Obtain a francization certificate 
  • Larger companies (100+ employees) must also create a Francization Committee. 

Still to Come – Future Measures (Second Regulation) 

A second phase of the regulation, originally expected in 2025, has been delayed due to shifting political priorities. If enacted, it may include: 

  • Product inscriptions: All product labels and information must appear in French. If another language is used, French must be clearly visible or affixed. 
  • Integrated software: Pre-installed or operational software (e.g., POS systems, apps, firmware) would need to be available in French. 

This regulation is now expected no earlier than Fall 2025, but it may be postponed indefinitely. 

Next Steps – Advocacy and Support 

Restaurants Canada is collaborating with other industry associations (retail, manufacturing, franchise, tourism, etc.) to advocate for a delay in the application of penalties and additional flexibility in implementation. 

We are also engaging with the Québec government to request: 

  • A grace period for enforcement; 
  • A clearer transition framework to validate compliance; 
  • More guidance tools in English for non-Francophone business owners. 

We will share best practices and compliance resources with members as they become available. 

Resources for Members 

Guides are available (in French only) on the OQLF website: 

OQLF Contact: 514-873-6565 | 1-888-873-6202 
Legal support is strongly recommended to assess individual compliance risks. 

Restaurants Canada will continue to monitor developments and keep members informed. If you have questions or are facing challenges implementing these changes, please contact us. 

ATLANTIC UPDATE

From Janick Cormier | Vice-President, Atlantic Canada

Prince Edward Island  

The entire advocacy team recently sent letters to the premiers asking for their help pitching removing the GST/HST off restaurant meals and other key issues such as interprovincial trade to their federal counterparts. I’m pleased to report that Premier Lantz of PEI has already inquired about meeting with us at some point over the summer to go over the state of our industry and how we can work together to strengthen it. This will be a great opportunity to discuss liquor control act modernization and other key issues such as access to foreign labour. If you have any thoughts on liquor modernization don’t hesitate to reach out, as I’m in the process of putting together a wish list and reasoning to bring to government in the hopes that we can get those changes included.  

New Brunswick  

Members who hold a liquor license should have received an email from ANBL regarding American products. They’re offering product in their warehouses to licensees who want to buy some of that stock for their restaurants. To be clear, American product will not be re-ordered, however, licensees now have access to whatever product is left in the warehouses.   

Please note that there is currently no stock of US product at any local store. Should you want to purchase any, you can contact your local store manager with a list of products you would like. Once store managers know what product licensees want, they’ll order it from the distribution centre and you will be notified when it’s ready for pick up.

CENTRAL CANADA UPDATE

From Kris Barnier | Vice President, Central Canada and the North

Ontario: Focusing on your priorities  

Through townhalls, the advice of the Government Relations Committee, and through conversations you have made your priorities clear.  

On profitability, we have enjoyed wins in recent months on alcohol pricing relief, the return of WSIB premiums, the recent HST holiday, and via other means that give Ontarians more disposable income. We remain engaged with other initiatives that aim to reduce your operating costs and drive your revenue.  

On crime and public safety, we are meeting with key government decision-makers and are partnering with other organizations to bring attention and to drive urgency to an issue that threatens your workers, patrons, and profitability.   

On labour, we are actively meeting with governments to talk about the important role foreign workers play in filling vacancies at key roles and in vulnerable communities, and we are working with KPMG on a long-term workforce sustainability strategy.  

We are also working to contain your EPR costs and to ensure that the program is revisited to drive better outcomes and greater cost-efficiency and affordability. 

It’s here: LCBO discount for licensees increased to 15%  

As announced at the RC Show by Premier Doug Ford and Finance Minister Peter Bethlenfalvy, restaurants and bars now receive a 15% discount in LCBO stores and online. The initial 10% was first introduced by Minister Bethlenfalvy in 2022. This is a big win for our industry and we again thank the government for responding to our ask by delivering this important cost savings.  

The discount will remain in place until December 31, 2025. In 2026, the government will implement a new pricing regime for alcohol, and we expect it will result in even greater savings for foodservice businesses. We will stay engaged with the government as it develops its future model. 

Ontario launches new campaign promoting domestic tourism  

Restaurants Canada commends the Ontario government and Stan Cho, Minister of Tourism, Culture and Gaming, for launching a new campaign that showcases some of Ontario’s premier travel, culinary and artistic destinations. The program encourages Canadians to enjoy destinations and experiences in Ontario. Click here to learn more.  

Ontario introduces Working for Workers 7 Legislation  

The Bill, introduced by David Piccini, Minister of Labour, Immigration, Training and Skills Development, includes a series of measures that aim to protect job seekers and injured workers, including measures driving transparency on hiring practices and payroll. It also includes proposed changes to give the government a greater ability to be nimble on immigration/OINP. Restaurants Canada has already engaged the government regarding our industry’s urgent labour needs at various key positions and in some rural/remote communities. Click here to see the news release and backgrounder.  

Ontario Signs Agreements to Unlock Free Trade with Alberta and Prince Edward Island  

Restaurants Canada commends Premier Ford and Ontario Minister of Economic Development, Job Creation and Trade Vic Fedeli for their continued leadership in working with other provinces to knock down barriers to trade.  Click here to see the government’s news release.  

Manitoba Wildfires  

Restaurants Canada extends its sympathy to Manitobans whose families, businesses, and lives have been impacted by devastating wildfires. If you have a business that’s been impacted by the wildfires, please reach out if you’re in need of help. 

Manitoba continues to demonstrate leadership on interprovincial trade  

Restaurants Canada commends the Kinew Government for moving on legislation that aims to remove trader barriers for goods and services between Manitoba and other jurisdictions. We also commend Opposition parties for their unanimous support for the legislation. Click here to see the news release. 

Manitoba: Continued Focus On the Business Security Rebate  

Shaun Jeffrey of MRFA and I remain focused on working with the Government as it builds out the program design and eligibility criteria for its $10M program. Shaun and I have pressed for a program design that is specifically responsive to the realities and needs of our sector, and we have shared recommendations that we believe are fair and supportive of both independents and restaurant groups with multiple locations. 

WESTERN UPDATE

From Mark von Schellwitz | Vice-President, Western Canada

AGLC Annual Liquor Stakeholder Meeting – Ad Valorem Wine Markups 

On June 3rd Restaurants Canada participated in the annual AGLC liquor stakeholders meeting. We highlighted member concerns regarding the additional ad valorem liquor markups announced in Alberta’s 2025 budget which add an additional 5% on wines from $15/litre to $20/litre, 10% on wines between $20/litre and $25/litre, and 15% to wines costing over $25/litre effective April 1st. Restaurants Canada initially discussed our concerns with Red Tape Reduction Minister Nally in March. At the time the Minister said that the additional markups on premium wines should not be significant enough to impact demand but understood Restaurants Canada’s position that partially adding a cost-based ad valorem markup on certain wines undermines Alberta’s flat tax markup system. 

As members began to replenish their wine inventory after April 1st, they are increasingly voicing concerns that they have been forced to absorb considerable increases in wine costs as most of the popular wines on their lists are impacted adding thousands of dollars in additional costs. At the stakeholder meeting Restaurants Canada director Phoebe Fung (owner of Vin Room restaurants) shared that the new Ad Valorem Wine markup is increasing her three restaurants’ wine costs by 22% ($60K) per year. We provided additional examples of restaurants impacted by the new wine markup pointing out that it contradicts Alberta’s level playing field flat tax markup structure, is unfair and hits the already struggling restaurants the hardest. It also negatively impacts almost all Canadian wine producers at a time when Canadians are supporting made in Canada liquor products as most Canadian produced wines are impacted by the cost increases while cheaper imported wines are not. 

Restaurants Canada requested AGLC board support for our position in recommending that the Alberta Government rescind the Ad Valorem wine markup and replace it with an across-the-board flat tax markup increase on all liquor products. We were pleased that numerous other liquor association stakeholders including those representing retailers, liquor agents, and Canadian wine growers, supported Restaurants Canada in opposing the new Ad Valorem wine markup requesting that it be rescinded. 

Restaurants Canada will be following up with the Minister once again asking government to rescind the Ad Valorem wine markup. We recommend that members impacted by new markup contact their local MLA and Service Alberta and Red Tape Reduction Minister Nally at ministersa@gov.ab.ca to voice their concerns and request that the new Ad Valorem Wine Tax be rescinded.    

WorkSafe BC Gratuity Policy Consultations 

In the last CEO note, we reported that Restaurants Canada and BCRFA issued a May 22nd press release urging WorkSafe BC to pause and reassess their gratuity policy which has cost confused audited BC members thousands of dollars in fines and additional reassessed payroll costs. WorkSafe BC has now organized a series of virtual engagement sessions during the last two weeks of June grouped by employer classification units where tipping is common, such as hospitality, food service, ride-hail, and personal services, that are designed to ensure industry-specific perspectives are heard. WorkSafe BC is currently contacting members directly inviting them to participate in the hospitality sector consultations taking place at 1-2pm on June 17th and June 19th. Session details and registration information are available HERE.  

Restaurants Canada encourages members to participate in the consultations. We are asking for the WorkSafe BC gratuity policy to be rescinded and for gratuity claims costs to be covered in the restaurant classification premium calculations instead of auditing members and penalizing them to include all verifiable gratuities as assessed payroll which contradicts CRA’s direct gratuity policy and adds additional payroll costs and regulatory burden on restaurants at a time they can least afford it.  

Should you have any questions or need more information about the upcoming consultations, please contact WorkSafe BC at stakeholderrelations@worksafebc.com.  

Saskatchewan Passes Employment Standards Amendment Act  

Members may recall that in December 2024 the government introduced the Saskatchewan Employment Standards Amendment Act. The proposed amendments are designed to reduce the administrative burden for employers while still supporting employees in today’s changing workplaces. On May 13th the Deputy Premier and Minister of Labour Relations announced that the legislation passed and will come into force later this fiscal year. The legislative amendments make several Employment Standards changes based on feedback from Restaurants Canada and other stakeholders. The amendments include: 

  • allowing employers to use a calendar day rather than 24 consecutive hours for the purposes of work schedules and overtime provisions; 
  • prohibiting employers from withholding tips from their employees; 
  • increasing the threshold when employers are required to notify employees, the minister and the union of a group termination from 10 to 25 employees;  
  • limiting when employers can request sick notes; 
  • providing the director of employment standards with the authority to order reinstatement or compensation for lost wages in cases of discriminatory action by an employer; and 
  • extending leave provisions related to sick leave, maternity leave, interpersonal violence leave and bereavement leave. 

For additional information the Ministry of Labour Relations and Workplace Safety also produced the following backgrounder on the Employment Standards Act amendments.  

We are stronger together!  Help us work towards our vision of – Vibrant and thriving foodservice communities across Canada!  

foodisfood.ca

Kelly Higginson