Restaurants are integral to Canada’s food security
Last week, Prime Minister Mark Carney announced Canada’s National Food Security Strategy. Restaurants Canada was invited to provide a submission to the federal government to help inform the development of the Strategy, and we are pleased to see several of our recommendations reflected in the document released by the Prime Minister. You can see our news release responding to the Strategy here.
Our participation in this process is a major step in ensuring the government recognizes not only the economic importance of our industry, but also how integral we are to Canadians’ day-to-day lives and Canada’s food ecosystem. In his remarks during the news conference, Agriculture and Agri-Food Minister Heath MacDonald acknowledged the role of restaurants in this initiative, citing his objective of helping farmers and food processors get more of their high-quality food onto restaurant menus.
The restaurant industry purchases approximately $43 billion in food and beverages annually, including roughly $30 billion from Canadian suppliers, making it the largest purchaser of Canadian agricultural products and giving us a practical understanding of how food moves through the economy and reaches Canadians.
Among Restaurants Canada’s recommendations reflected in the Strategy are:
- invest in food terminals and food hubs
- strengthen competition and consumer affordability
- reduce regulatory barriers
- expand domestic food processing capacity
- improve supply-chain resilience.
The recommendations in our submission are grounded in industry data and collected in one-on-one interviews during the building of this submission giving us the direct operating experiences of Restaurants Canada members across the country. We thank the members who shared their views and challenges with us in the drafting of the submission.
With our industry’s strength, perspective and expertise, Restaurants Canada looks forward to continuing our dialogue with the federal government and other key stakeholders on the implementation of the National Food Security Strategy.
Restaurants lead all industries in youth job creation
StatsCan’s May 2026 Labour Force Survey reported 50,000 more youth jobs in the restaurants and accommodation sector so far this year than last year. Restaurants were the biggest job creator for youth of any industry, with a nearly 12% year-over-year increase.
Youth employment is a top issue for all governments right now, and this data is key in helping us demonstrate the industry’s continued role as a major employer of youth. Restaurants are the number one source of first-time jobs, with youth making up nearly 40% of our workforce.
We are amplifying these results on social media and in regional communications.
We recently launched a toolkit to support restaurants in hiring and retaining youth. Download it here.
Ontario Dairy Farmers Convention
I had the pleasure of attending the Ontario Dairy Farmers’ Convention in Burlington recently, along with Restaurants Canada’s Chief Economist and VP Research, Chris Elliott. We were invited to speak on the dining trends we’re seeing that could impact dairy farmers, as well as discussing ways our industries can collaborate more closely. These events help amplify Restaurants Canada’s advocacy and influence on agricultural policy.
Tip Management and Compliance webinar with Actual
We invite you to join us for our June Webinar, presented by Actual, 2026 Tip Management Compliance Updates: Direct Tips, Tip Committees & Provincial Rules on Thursday, June 25 at 2:00 PM ET.
Tip management rules are changing, and many operators find it difficult to keep up with federal and provincial requirements. Join Afshin Mousavian, Co-Founder of Actual (formerly Atlas), and James Rhodes of Taxation Lawyers LLP, for an update on the latest Direct Tips requirements, provincial tipping rules, and compliance best practices for hospitality businesses.
Register here today.
Virtual Townhall Recordings
Last week, we held the latest edition of our members-only virtual townhalls. It was a great opportunity to connect with members across the country, update them on the latest stats and trends impacting the industry and on our advocacy work in Ottawa and in provincial capitals across the country. If you missed the townhall in your region, you can find the recordings of the sessions here.
Restaurants Canada Awards of Excellence nominations
We invite you to recognize the innovators, leaders and changemakers in your community whose impact deserves to be celebrated and amplified by nominating them for the Restaurants Canada Awards of Excellence. The nomination deadline is June 26, 2026, at 11:59 PM ET.
FEDERAL UPDATE
From Matt Triemstra | Vice-President, Federal Affairs
Ottawa Meetings
Our work continues in Ottawa as the House of Commons heads into its summer recess later this week. We met recently with MP Julie Dzerowicz, Chair of the House of Commons Standing Committee on Citizenship and Immigration, to discuss how labour shortages are hurting local economies. We also met with the Office of MP Hedy Fry, who represents the riding of Vancouver Centre, one of the top ridings across the country for foodservice revenue. We had a cery good discussion with senior staff of Rechie Valdez, Secretary of State for Small Business and Tourism, to discuss Restaurant Canada’s pre-budget submission and to reinforce the need to improve conditions for investment and growth so that Canada’s restaurant sector can continue to contribute to job creation and economic growth in communities across the country.
Online Harms Act
Bill C-34, the Safe Social Media Act, was introduced last week in the House of Commons. It creates a new online safety framework aimed at social media platforms, AI chatbots, and other large online services, with a strong focus on protecting children. The bill is not designed to capture the retail sector. Online platforms whose main purpose is selling, listing, or advertising goods and services are carved out of the scope of the legislation entirely. We will be monitoring the progress of this legislation for any issues of concern. For example, the bill can regulate certain AI chatbots, but only those built to simulate an ongoing, human-like relationship with users, not the customer-service or shopping-assistant tools common in retail. There is no explicit exemption written in for retail chatbots, but the bill gives the government authority to formally exempt categories of AI through future regulations, and the Minister’s office has confirmed the intent is not to capture enterprise chatbots. Additional details about Bill C-34 are available here: backgrounder, news release.
Interprovincial Trade Online Survey
The Committee on Internal Trade (CIT) has launched a survey and we are asking all members who are interested to complete the Interprovincial Trade Online Survey before June 17. The CIT is a regulatory body comprised of federal, provincial, and territorial ministers responsible for reducing internal trade barriers and unlocking domestic economic opportunities. Following the 2025 signing of the Canadian Mutual Recognition Agreement on the Sale of Goods, the CIT is now expanding this framework to services by the end of 2026. Your specific operational experiences are critical to shaping these upcoming regulations.
SUSTAINABILITY UPDATE
From Jillian Rodak | Vice-President, Sustainability
Quebec’s EPR cost relief measure
In March, the Quebec government announced a $27 million fund to ÉEQ to offset a portion of producers’ 2025 Schedule of Contributions (i.e., invoiced fees under the former compensation plan). The funding is available to producers with global revenues below $100 million and Restaurants Canada has urged the Quebec Government to accept applications from businesses above the eligibility threshold to provide relief fairly across all ÉEQ producers.
A significant portion of the fund has remained unallocated as only a small share of eligible producers applied to-date, and the government wants to find a solution to distribute the full amount of the funding.
Restaurants Canada secured agreement from ÉEQ that they would receive applications above the $100 million threshold, and ÉEQ agreed to work with the Quebec government to consider allocating the funds outside of the current eligibility criteria. While the application deadline was on June 12th, if you are interested in applying, please reach out to jrodak@restaurantscanada.org.
Restaurants Canada will continue to advocate to the Quebec Government on our industry’s broader concerns about the cost burden of EPR leading up to the Fall election.
City of Edmonton: Single-use Item Reduction Bylaw
The City of Edmonton invites restaurant operators to complete a short survey to understand the impact of the Single-use Item Reduction Bylaw (SUI Bylaw) on your business, particularly for drive-thrus and delivery services.
The SUI Bylaw took effect on July 1, 2023, placing restrictions on certain single-use items used for convenience. The City is looking to understand how this Bylaw has affected your business financially, what challenges you have running your day-to-day business, and any support needed.
Click here to start the short survey
ATLANTIC CANADA UPDATE
From Janick Cormier | Vice-President, Atlantic Canada
Nova Scotia – Rules for security staff in bars
The new regulations governing security staff in bars have come into effect as of June 1. As the regulations were only published a few days before, Restaurants Canada has been assured that no enforcement action will be taken for the first few months and that Alcohol, Gaming, Fuel and Tobacco (AGFT) will undertake an education-first approach before imposing penalties. More details were included in a recent note to members. We encourage you to acquaint yourselves with the new rules.
Of note, there are also many positive amendments to other regulations such as:
- Infusion of liquor is now allowed under certain conditions
- Minors are allowed to serve in lounges until 10pm
- The removal of the prerequisite to apply to AGFT for approval of an underage performer
- The removal of the prerequisite to apply to AGFT for selling alcohol for take away, including mixed cocktails.
Newfoundland and Labrador sales tax legislation
The Newfoundland and Labrador Liberal Party announced plans to introduce legislation this fall that would remove the provincial portion of the HST from food sold in grocery stores. Given similar proposals emerging in other provinces, Restaurants Canada moved quickly to engage with the Liberal Party and ensure restaurants were not excluded from any potential tax relief measure.
This would not be a neutral tax cut on food, but a tax shift between competitors. Consumers would only receive the benefit if they change where they purchase their food, which advantages large grocery retailers while placing restaurants at a competitive disadvantage.
After speaking with Liberal Leader John Hogan’s Chief of Staff, Restaurants Canada was assured that their proposed bill would include our industry, and we will be meeting in the coming weeks to discuss their legislative plans in more detail.
CENTRAL CANADA UPDATE
From Kris Barnier | Vice-President, Central Canada and the North
LCBO update
With LCBO’s new wholesale pricing system and Future State Modernization initiatives underway, Restaurants Canada has been working to share member feedback and concerns with LCBO on an ongoing basis. Please see here for recent and ongoing efforts toward service improvements by LCBO.
LCBO is in the process of going out to suppliers with product calls whereby interested suppliers can apply to list their products on wholesale.lcbo.com. It will add additional product listings in the coming months.
Starting July 1, LCBO is expanding its Direct Delivery Program to allow large distillers to sell and deliver packaged RTD products below 18% ABV to eligible wholesale customers. Currently large distillers are only permitted to sell RTD products in keg format. Authorized suppliers will be added to the online list on an ongoing basis.
Manitoba PST update
Before rising for the summer, the Manitoba Legislative Assembly passed legislation that will facilitate the removal of PST on prepared foods sold in grocery and convenience stores as of July 1, 2026. As we have been regularly reporting to members, Restaurants Canada has been fighting back against this unfair approach that excludes restaurants from the PST exemption, limiting consumer choice and negatively impacting restaurant workers and operators.
We remain deeply disappointed that Premier Kinew has yet to meet with us directly to discuss the inherent unfairness of this measure and its expected harms. Regardless, our advocacy continues, including a meeting last week with Manitoba’s Official Opposition Leader Obby Khan, who took the time to talk with us about the issue. Consistent with their statements in media and in the Legislature, Mr. Khan reiterated his party’s position that the removal of PST on prepared meals should be extended to include restaurants and bars.
WESTERN CANADA UPDATE
From Cheryl Maitland Muir | Vice-President, Western Canada
Alberta AGLC Updates – Liquor Service Hours & Licensee Handbook
Alberta Gaming Liquor and Cannabis (AGLC) has announced permanent changes to liquor service hours. Restaurants and other licensed establishments in Alberta can now choose to commence liquor service for onsite consumption at 6:00 am without the need for special approval.
Restaurants Canada welcomes this change which removes unnecessary red tape and outdated restrictions that limited extended hours to designated major and international events. It reflects Restaurants Canada’s ongoing advocacy to reduce administrative burdens for operators, while giving businesses the flexibility to respond to local demand and seize new opportunities to better serve their guests.
Note that closing hours for liquor service remains unchanged at 3:00 am, with last service for alcohol stopping one hour before close.
Other changes to the AGLC Liquor Licensee Handbook include changes to the minimum prices (5.2.3) for on-premise alcohol beverages as follows:
- Sprits and liqueurs: $4.00 / 28.5 ml (1 oz) or less
- Wine: $0.50 / 28.5 ml (1 oz)
- Draught beer: $0.25 / 28.5 ml (1 oz)
- Bottled / can beer, ciders or coolers: $4.00 / 341ml bottle or 355 ml can
More details on the changes and a link to the Liquor Licensee Handbook can be found here.
Alberta Immigration Oversight Act
Restaurants Canada has provided written feedback to the Government of Alberta on the implementation of the Immigration Oversight Act. We have shared our concerns with the potential for increased administrative costs and complexities for the restaurant sector and requested that the government avoid duplicative efforts with the federal program and leverage the information already collected. Finally, we have asked there be further opportunity for input on the draft regulations prior to implementation to identify unintended consequences and help more effectively prepare the industry.
Saskatchewan Liquor and Gaming Authority
The SLGA has announced increased fines for certain liquor service infractions effective June 8. The minimum penalty for selling alcohol to minors or intoxicated individuals has increased to $2,500 from $1,000. Fines for failing to demand proof of age have doubled to $1,000. More information on responsible service in Saskatchewan can be found here.
With gratitude,
Kelly Higginson
