Taking your priorities to policy-makers’ home ridings this summer
While Parliament and provincial legislatures have risen for the summer, the Restaurants Canada team is still hard at work. Our advocacy continues throughout the summer months, using the time for discussions with MPs and members of provincial legislatures in their ridings. The quieter summer months are also an opportunity for more focused conversations with federal and provincial government officials, including senior ministerial staff, in Ottawa and provincial capitals. In all of these discussions, we will continue to advance our major policy priorities, including our federal pre-budget submission, national food security strategy recommendations, workforce and access to labour needs, cost relief measures, removing the GST from all food – including protecting our industry from unfair tax policies that advantage the grocery sector – and supporting investment in the industry.
We are also finding more opportunities to connect with members to discuss our policy priorities in preparation for the fall to ensure your voice continues to be heard by all levels of government.
ICYMI: Tip Management and Compliance webinar
Tip management rules are changing, and many operators find it difficult to keep up with federal and provincial requirements. Last week, representatives from Actual (formerly Atlas) provided members with an update on the latest Direct Tips requirements, provincial tipping rules, and compliance best practices for hospitality businesses.
In case you missed it, you can now watch the webinar recording here.
FEDERAL UPDATE
From Matt Triemstra | Vice-President, Federal Affairs
Ottawa Meetings and Summer Parliamentary Recess
Restaurants Canada recently participated in a meeting with the Deputy Minister of Immigration, Refugees and Citizenship Canada. We addressed the critical labour shortages the restaurant industry is facing, discussed the impending expiration of 15% rural cap for the Temporary Foreign Worker Program, and urged the federal government to consider the needs of the sector in immigration policy. There is an openness to a rural-focused strategy and prioritizing the retention of needed foreign workers already in Canada, aligning with our industry’s need for permanent residency pathways and sustainable labour solutions.
Bill C-35 – Ban on Importing Goods Made with Forced Labour Act
Prior to the summer recess, the federal government introduced legislation to ban the import of goods made with forced labour. Bill C-35, the Ban on Importing Goods Made with Forced Labour Act, shifts Canadian policy from passive reporting to active, border-level enforcement and establishes a standalone framework to block goods produced with forced labour. The government will maintain a specific list of high-risk goods, regions, and entities.
This legislation introduces a “reverse onus” mechanism where importers must provide documentation proving imported goods are not produced with forced labour. Penalties could include automatic prohibition, with importers bearing joint liability for all associated seizure and disposal costs. Products like seafood, agriculture, and textiles are among those under scrutiny.
Bill C-35 will be subject to parliamentary debate and study in the fall, and Restaurants Canada will be monitoring the proceedings and assessing the legislation’s impact on restaurant operations. We will keep you informed of developments. You can read the full government news release here.
Tariffs on Imports of Frozen and Canned Vegetables
Effective June 19, the federal government imposed a 10% provisional tariff on specific imported frozen and canned vegetables to protect domestic producers. The 200-day surtax expires in January 2027 and applies to foodservice, bulk, and retail formats of products like corn, peas, and various beans. However, it is important to note that imports from the U.S., Mexico, Israel, Chile, and developing nations are excluded. Members may wish to review their supply chains for impact on food costs and we welcome feedback about how this move may impact your operations. Read the full government announcement here.
SUSTAINABILITY UPDATE
From Jillian Rodak | Vice-President, Sustainability
Edmonton ICI Waste Roadmap Delayed
The City of Edmonton has delayed the Utility Committee meeting on its proposed ICI Waste Roadmap (2027–2030), originally scheduled for June 22, to better align discussions with an upcoming climate report. A new meeting date has not yet been announced. Restaurants Canada and our members were engaged with the City of Edmonton on the early stages of this roadmap in the winter of 2026. We will share further updates as they become available.
ATLANTIC CANADA UPDATE
From Janick Cormier | Vice-President, Atlantic Canada
Nova Scotia
Restaurants Canada recently met with the Halifax Regional Police and Alcohol, Gaming, Fuel and Tobacco (AGFT) and bar operators in the downtown core to discuss public safety issues, re-introducing and revamping the PASS program, and how we can better address safety for patrons and employees. The meeting was productive and these discussions with HRP and AGFT, as well as the Mayor’s office, will continue in order to identify appropriate safety measures.
Newfoundland and Labrador
Restaurants Canada recently met with Opposition Leader John Hogan and Finance Critic Sarah Stoodley, to discuss their plans for forthcoming legislation to address taxes on food. Members will recall that the original Liberal announcement limited their plan to tax exemption on grocery items. After discussions with Restaurants Canada, the Liberals understand the importance of a tax-exemption plan that treats grocery and restaurants equally, and they have committed to including restaurants in their approach. We will continue to work with the Leader and his team on this issue we will update members as this issue evolves.
CENTRAL CANADA UPDATE
From Kris Barnier | Vice-President, Central Canada and the North
Ontario advocacy on LCBO modernization, labour shortages and rising costs
We continue to engage with the provincial government on key member priorities.
Regular discussions with the LCBO and the Ministry of Finance have focused on the challenges members face when making online and in-store purchases. The LCBO has indicated that it is actively working to address these issues.
We also remain engaged with the province regarding ongoing industry challenges, including labour shortages, rising operating costs, and profitability pressures. Our advocacy efforts continue to focus on encouraging government action that reduces costs and removes barriers affecting business profitability.
$6 Million Investment to Support Young Entrepreneurs
Through its Futurpreneur initiative, the Ontario government is investing $6 million to provide funding, mentoring, networking opportunities, and other resources to help entrepreneurs aged 18 to 39 start and grow their businesses.
Find more information about the program and application process here.
Manitoba – PST Exemption for Grocery Prepared Meals
Despite our repeated requests, Premier Kinew has still not agreed to meet directly with Restaurants Canada to discuss the government’s decision to remove the PST on prepared foods sold in grocery and convenience stores, while continuing to apply the tax to restaurant-prepared food.
Restaurants Canada will continue advocating in Manitoba—and across the country—for fair and equitable food taxation policies. We remain committed to ensuring that restaurant businesses, their employees, and their customers are treated fairly.
WESTERN CANADA UPDATE
From Cheryl Maitland Muir | Vice-President, Western Canada
Restaurants Canada at Stampede!
Restaurants Canada President and CEO Kelly Higginson and VP, Western Canada, Cheryl Maitland-Muir, will be at the Calgary Stampede attending several events and engagements with government officials, members and industry partners between July 3-6. We look forward to the opportunity to connect on the ground in Calgary. If you will be there and would like to catch up in person, please reach out directly to Cheryl at cmuir@restaurantscanada.org.
Alberta reverses decision on minimum drink price
Minister Dale Nally reversed the AGLC’s June 9th increase to the minimum price for on-premise alcohol beverages and reinstated the previous pricing structure. Please reference section 5.2.3 (page 65) of the AGLC Liquor Licensee Handbook for more information. Restaurants Canada is meeting with the AGLC this week to discuss the need to strengthen communications on key policy decisions impacting licensed restaurants across the province.
British Columbia Budget Submission
Restaurants Canada submitted recommendations as part of this year’s B.C. budget consultation process. We highlighted opportunities to reduce labour costs for restaurateurs through policy adjustments to the Employer Health Tax and paid sick days. We also encouraged the government to expand tax credits that support capital investments in new and growing restaurants.
In addition, we called on the province to strengthen the industry’s talent pipeline by increasing investment in culinary programs at both secondary and post-secondary institutions, as well as in training grants.
We will continue to advocate on these, and other matters critical to the sector over the coming months.
B.C. licensee to licensee sales
It’s been just over a month since licensee-to-licensee sales took effect. Licensed restaurants can now purchase alcohol directly from private liquor retailers, expanding product choice and helping build a more resilient supply chain.
The BC LDB will be monitoring the impacts of this change throughout the three-year pilot. Restaurants Canada will continue advocating for a more modern liquor distribution system. We want to hear how this new model is working for you—your feedback helps us identify opportunities to improve the system and share these experiences with the LDB.
With gratitude,
Kelly Higginson
