Workforce challenges are growing and here’s how we’re responding
Happy New Year! The Restaurants Canada team is hitting the ground running now that 2026 is underway.
Last week, Restaurants Canada was active in national media following the release of new analysis by Professor Sylvain Charlebois which projects a net decline of approximately 4,000 restaurants across Canada in 2026. The analysis suggests that closures will disproportionately affect independently owned establishments. Their potential loss underscores the severity of the challenges facing the industry.
This analysis aligns closely with the concerns Restaurants Canada has continually been raising with governments and discussing in the media over the past year. We have consistently called attention to the affordability crisis facing Canadians, its impact on discretionary spending, sustained inflationary pressures and sharply rising input costs, and the significant operational challenges stemming from changes to immigration policy.
The economic environment confronting restaurants in 2026 differs markedly from last year. In 2025, the sector had some temporary relief boosting sales, including the GST/HST holiday early in the year and increased domestic travel as more Canadians chose to stay within Canada rather than travel to the United States. These factors helped partially offset persistent pressures.
Restaurants are now entering 2026 without those supports and facing intensified headwinds. Rising costs, continued margin erosion, and declining immigration levels are constraining both consumer demand and operators’ ability to staff their businesses, particularly in rural, remote, and tourism-dependent regions. As a result, sector profitability remains under significant strain: 41% of foodservice businesses are currently operating at a loss or just breaking even, compared to 12% five years ago, and 46% of restaurant operators expect profitability to worsen in 2026, while only 13% anticipate some improvement. While Restaurants Canada cannot independently validate external projections at this time, our own research indicates a contraction in real foodservice sales in 2026, followed by stabilization in 2027.
Restaurants Canada continues to closely monitor economic conditions and engage actively with governments at all levels to advance policies that support a resilient, competitive foodservice sector. Our advocacy priorities include exempting all food from GST, establishing targeted pathways to hire foreign workers for rural, remote, and tourism-based businesses, improving interprovincial trade, and implementing more competitive wholesale alcohol pricing through provincial liquor boards.
You can see more of our work on this topic in some of our recent media appearances:
Securing a stable workforce
Our top priority is advocating for workforce solutions that support our industry. This includes our ongoing work on immigration, but we are also concerned about the slate of culinary program closures we’ve seen across the country over the past year. We are building a coalition of partners and stakeholders to address these growing issues and propose policy solutions to all levels of government that ensure our industry has the workforce it needs today and in the future.
In the coming weeks, you will see the launch of our latest public campaign aimed at changing Canadians’ attitudes around immigration and careers in foodservice. This will be a long-term effort, but one that will ensure Canadians understand the importance of our sector to their communities and to the economy. We look forward to your support in spreading the word through your channels.
Welcome Anthony Polci to the Restaurants Canada team
On Monday, January 5, we welcomed Anthony Polci as Executive Vice President, Government Relations and Public Affairs. A recognized Top 100 Lobbyist and former Chrétien-era cabinet chief of staff, Anthony brings deep experience in disciplined, measurable advocacy, strategic judgment, and coalition-building across both the public and private sectors. His appointment strengthens Restaurants Canada’s advocacy capacity at a critical time for the foodservice industry, following a year marked by trade, supply chain, and immigration challenges. He joins after serving for two decades at the Canadian Bankers Association, including as Chief Strategy Officer and Head of Government Relations and previously held senior roles in the Office of the Minister of Transport.
Please join me in wishing Anthony a strong start!
Research highlight: The rise of snacking
Snacking is emerging as a defining shift in how Canadians eat, with busy and on-the-go lifestyles driving consumers to replace traditional meals with flexible snack options. Download our Foodservice Facts Snacking Habits infographic for a bite-sized summary of what this shift means for your menu and how to turn snacking moments into new growth opportunities.
Join Tourism HR Canada for the National Tourism Workforce Summit
Register here for this free, 90-minute webinar hosted by Tourism HR Canada on January 19 to hear the latest labour market research, including key trends, pressures, and opportunities shaping the national workforce. Learn about strategies to address workforce challenges, with an objective exploration of what is working, where gaps remain, and why.
Congratulations to Stephen Beckta on his appointment to the Order of Canada
We congratulate Stephen Beckta, President of Beckta, Play and Gezellig restaurants, and Curated By Beckta, and a long-time Restaurants Canada member, on his appointment to the Order of Canada in recognition of his entrepreneurial work in Ottawa’s hospitality industry, as well as his community service with the Boys and Girls Club of Ottawa. Stephen’s impact on the foodservice sector and Ottawa’s dining scene has helped shape a stronger, more vibrant community. It’s inspiring to see someone from the foodservice sector who has given so much to the industry receive the well-deserved recognition at this level. Bravo on this remarkable achievement!
Olymel joins Restaurants Canada’s Corporate Partners
We’re excited to officially welcome Olymel into our Restaurants Canada corporate partner community!
Olymel, a Canadian meatpacking and food-processing company, serves the entire Canadian market and exports a large share of its production to more than 65 countries worldwide. They have experienced rapid growth since their inception in 1991 and remain a leader in the Canadian agri-food industry to this day.
We are looking forward to working closely with Olymel’s Foodservice leadership, Jerome Bruneau and Puneet Chopra, as we move towards our goal of fueling the foodservice and hospitality industry in Canada.
Find out how you can become a Restaurants Canada corporate partner by emailing us at sponsorship@restaurantscanada.org.
FEDERAL UPDATE
From Matt Triemstra | Vice-President, Federal Affairs
Conservative Convention 2026 – Resolutions That May Affect Restaurants
The Conservative Party of Canada is heading into its national policy convention later this month (Jan 29-31). In advance of the convention, a draft policy book has been released outlining a range of policy resolutions that delegates will debate, including two resolutions advocating for the elimination of the Temporary Foreign Worker Program. It is important to note that these resolutions have not yet been voted on, and even if adopted by delegates, the Party Leader is not obligated to pursue them as policy.
We have previously written to the Leader of the Opposition about how his comments on the TFW program have unintentionally cast a harmful spotlight on racialized frontline workers in our restaurants—whether they are Canadian-born, immigrants, or TFWs. Read the letter here.
Regardless of any decisions made by grassroots members at the convention, Restaurants Canada will continue to monitor developments closely and engage with our contacts within the Conservative Party, including Members of Parliament and the Official Opposition Leader’s Office. Labour access remains a top advocacy priority, and we will continue to clearly and consistently communicate the realities facing restaurant operators across the country as we meet with elected officials and staff and engage with the media.
Ottawa Meetings
Your team in Ottawa ended 2025 strong by holding 16 meetings with MPs and government officials. Together, members of our team met with the Deputy Minister of Immigration, political staff for the Minister of Jobs and Families, the Prime Minister’s Office and many Members of Parliament. In each meeting we took the opportunity to highlight our industry labour challenges, immigration recommendations and to discuss the significance of removing the GST from all food.
We also attended signature Ottawa events such as the Equal Voice Gala, the Liberal Caucus Christmas Party and an Ottawa Board of Trade event featuring Ottawa Mayor Mark Sutcliffe and his guest Prime Minister Mark Carney. Having an Ottawa office has proven incredibly valuable and, with the addition of Anthony Polci in Ottawa, we look forward to continued engagement with government throughout 2026!
New Deputy Ministers
Prime Minister Mark Carney made changes to the senior ranks of the public service and Restaurants Canada looks forward to engaging with Nick Lewis, Deputy Minister of Finance and Rob Wright, Deputy Minister of Labour, at the earliest opportunity.
Youth Employment
We also recently had the opportunity to contribute to Employment and Social Development Canada’s national engagement to consult on youth employment and labour market challenges facing young Canadians. As the leading voice of Canada’s foodservice industry, Restaurants Canada welcomed the opportunity to provide data-driven insights into the state of youth employment, the challenges facing young workers, and the policy levers that can help strengthen workforce participation and economic resilience across the country. You can read the full submission here.
SUSTAINABILITY UPDATE
From Jillian Rodak | Vice-President, Sustainability
EPR in Yukon
The Yukon government has announced that it is pausing the expansion of EPR programs, specifically the hazardous and special waste program, which had been scheduled to come into force in January 2026. While this pause only applies to the expansion to hazardous and special waste and does not affect existing EPR programs, including for packaging, the Yukon government indicated it will be engaging with businesses and PROs across all EPR programs in the coming months to gather feedback on programs, with a focus on effectiveness, affordability, and long-term sustainability.
Edmonton ICI waste roadmap
The City of Edmonton’s phase 2 of its engagement process on the ICI Waste Roadmap ends on January 30th. Please join us for a feedback session with the City of Edmonton exclusively for RC members on January 19th from 12-2 pm MT. Register here. You can also have your voice heard by filling out this survey until January 30th.
EPR in Ontario
In a Toronto Star article last week, Premier Doug Ford acknowledged early implementation issues with Ontario’s new Blue Box system and signalled a willingness to intervene if the program does not perform as intended. As of January 1, responsibility for curbside recycling has shifted from municipalities to Circular Materials, the industry-funded PRO overseeing Ontario’s Blue Box system. Ford reaffirmed the government’s rationale for shifting to a producer responsibility model, citing goals to increase recycling diversion, expand the list of accepted materials, and address capacity gaps at recycling facilities, while noting that the program may be “tweaked” as implementation continues.
Greenwashing amendments adding more risk?
As we wait for the greenwashing amendments to Bill C-59 to be finalized, some experts argue that the amendments will not provide more flexibility to companies but rather will further constrain them when it comes to substantiating environmental claims. Join our next RC Sustainability Committee meeting on February 5th at 3 pm EST to hear from KPMG Law and learn more. Email jrodak@restaurantscanada.org for the meeting link.
Circular Food Innovators Fund
The City of Toronto launched The Circular Food Innovators Fund in 2024 to support local, small businesses in adopting circular solutions in their operations. Applications are now open for a new round of funding, which closes March 1st, 2026. Please reach out to jrodak@restaurantscanada.org if you would like support applying for this fund.
QUÉBEC UPDATE
From Marie-Pier Richard | Vice-President, Québec
English follows
Bonne année ! 2026 sera marquée d’une année électorale au Québec, une belle occasion de faire entendre notre voix alors que les décideurs doivent se positionner sur différents enjeux
Un peu avant Noel, nous avons multiplié nos actions pour interpeller le ministre Roberge et lui demander des changements aux nouvelles mesures d’immigration qui pénalisent grandement l’industrie de la restauration. Le changement du PEQ en PSTQ n’a encore généré aucune invitation pour les travailleurs de notre secteur, ce qui forcera sous peu ceux dont le permis de travail n’est plus valide à quitter le territoire.
Sorties avec les maires de Québec et de Lévis, entrevues et sensibilisation des élus, ont mené à une sortie positive du ministre Jean-François Roberge, nous confirmant qu’il entendait considérer la restauration dans les invitations prochaines du programme. Un message encourageant du ministre qui cible concrètement la restauration, reste à voir quand ces invitations viendront et nous maintiendront la pression pour que les invitations arrivent rapidement. Nous allons maintenir les pressions en ce sens et avons fait des demandes conjointement avec l’ARQ pour obtenir des changements au système d’immigration auprès du ministre.
Happy New Year! 2026 will be an election year in Quebec, a great opportunity to make our voices heard as decision-makers are required to take positions on a range of issues.
Shortly before Christmas, we stepped up our efforts to engage Minister Roberge and call for changes to the new immigration measures that are severely penalizing the restaurant industry. The shift from the PEQ to the PSTQ has yet to generate a single invitation for workers in our sector, which will soon force those whose work permits have expired to leave the province.
Public appearances with the mayors of Quebec City and Lévis, along with media interviews and outreach to elected officials, led to a positive public statement from Minister Jean-François Roberge, confirming that he intends to take the restaurant sector into consideration in upcoming invitations under the program. While this is an encouraging message that explicitly recognizes our sector, it remains to be seen when these invitations will be issued, and we will continue to apply pressure to ensure they come quickly. We will maintain these efforts and have jointly submitted requests with the ARQ to the Minister to secure changes to the immigration system.
ATLANTIC CANADA UPDATE
From Janick Cormier | Vice-President, Atlantic Canada
Happy New Year!
Last week officially marked my one-year anniversary as your Vice-President, Atlantic Canada. What a year it has been! I have learned a lot, and continue to do so, met so many members (and so many more to meet!), and continue building relationships with government officials in all four corners of Atlantic Canada. Our industry continues to face many challenges, but I am always inspired by your enthusiasm, adaptability and resilience.
This is my first update since I got back from my month in Ottawa. I’ve returned with renewed optimism and motivation to continue to fight for the reversal of immigration cuts and the removal of HST on restaurant meals. I got to know our new Vice-President, Federal Affairs, Matt Triemstra, and am confident that he will be a strong voice for our industry in Ottawa. Most importantly, I got to meet new Members of Parliament from both sides of the House who understand the needs of rural Atlantic Canada and the effects of the drastic cuts to immigration on our communities and the tourism product of our regions.
I was pleased to learn that Minister LeBlanc has cracked the door open for a better immigration plan for New Brunswick. I see that as a sign that our advocacy efforts are paying off and that our alarm bells are being heard at the highest levels of government.
That said, I do not expect a magic solution for our labour shortage issues anytime soon. Too many employees have already left the country. Intervention at this stage is welcomed, but I know that it would also be far too late for many members. In the coming months, Restaurants Canada will launch a public-facing campaign on this matter so that Canadians can better understand the consequences of reduced immigration.
A reminder that the Francophone Mobility program is an option for members outside of Quebec. This program does not require an LMIA but does require French speaking and listening skills at an intermediate level for potential candidates. The workplace does not have to operate in French. Don’t hesitate to reach out should you want more information on this path.
There is a lot more work ahead on a number of fronts. In 2026, I will continue to advocate for the modernization of the Liquor Control Act in Prince Edward Island, increases in licensee discounts for all Atlantic restaurants, the removal of HST on restaurant meals, addressing credit card fees on HST and tips, and improving access to foreign workers.
On that note, I wish you a successful 2026 and look forward to continuing to work with all of you towards a thriving restaurant industry in Atlantic Canada.
CENTRAL CANADA UPDATE
From Kris Barnier | Vice-President, Central Canada and the North
Restaurants Canada Supports Ontario’s Vision for the Niagara Region
It was an honour to be among a group of invited guests as Premier Doug Ford and Tourism, Culture and Gaming Minister Stan Cho announced a new vision for the Niagara Region. The plan focuses on enhancing Niagara’s appeal as a world-class tourism destination.
The strategy includes targeted infrastructure investments, exploring gaming and resort opportunities, and promoting Niagara as a top destination for wine and culinary tourism. We applaud the Province’s leadership and look forward to supporting the Ontario government as it works to bring this vision to life.
Learn more by clicking here.
Ontario Pre-Budget Submission
Restaurants Canada recently completed its Pre-Budget Submission, outlining the current state of our industry and highlighting key priorities, including:
- More competitive alcohol pricing for licensees
- PST relief on modestly priced meals
- Support to help businesses invest in technology that drives efficiency and improves the customer experience
- Support to help protect businesses from crime and other public safety threats
- Measures to ensure the long-term sustainability of our industry’s workforce
Our recommendations focus on strategic initiatives that protect restaurant guests, workers, and consumers, while also helping restaurants grow revenue and contribute to economic growth.
Click here to view our submission.
Ontario Passes Hospitality Workers Appreciation Day Act, 2025
Restaurants Canada commends MPP Ernie Hardeman for introducing legislation that officially designates February 23 each year as Hospitality Workers Appreciation Day. The day recognizes the valuable contributions of workers in restaurants, hotels, and event spaces.
The bill received Royal Assent in December 2025, and it was a pleasure to attend as an invited guest when the legislation was first introduced.
Changes to Ontario employment standards
The Government of Ontario’s latest amendments to the Employment Standards Act came into effect on January 1, 2026, and apply to all employers with 25 or more employees. The new measures include mandatory declarations in job postings and certain requirements around communication and retention of data as they relate to recruitment practices and posting jobs. Download our quick factsheet for more information here.
Manitoba Business Security Rebate Program
It was an absolute thrill to stand alongside Shaun Jeffrey of the MRFA and share remarks at the event where Justice Minister Matt Wiebe and Minister of Public Service Delivery Mintu Sandhu officially launched Manitoba’s Business Security Rebate Program.
This program is a direct result of Restaurants Canada and MRFA’s strong leadership and advocacy efforts. The program was designed in response to our request for funding on a per-location basis, allowing restaurant operators to receive up to $2,500 per location across Manitoba.
Funding can be used to address property damage caused by crime or to invest in eligible security measures that help keep businesses, patrons, and employees safe. A total of $10 million is available, with funding distributed on a first-come, first-served basis.
To learn more and apply, click here.
Manitoba Pre-Budget Submission
Last year’s Manitoba Budget delivered a historic win for Manitoba restaurants with the introduction of the Business Security Rebate. MRFA and Restaurants Canada are once again working hard to secure additional wins in the upcoming budget.
Our priorities include:
- Relief on alcohol procurement costs
- Support to help businesses invest in technology that improves efficiency and customer experience
- Additional WSIB relief and the return of surplus premiums
- Support to offset the cost of training new employees
Click here to view the submission.
WESTERN CANADA UPDATE
From Mark von Schellwitz | Vice-President, Western Canada
New Vice President, Western Canada
As previously announced, Cheryl Maitland Muir is now the new Restaurants Canada Vice President, Western Canada, replacing me (Mark von Schellwitz), as I am retiring at the end of January after 29 years with Restaurants Canada. Cheryl officially joined the Restaurants Canada team on December 15th and will be working with me on the transition until January 30th. Cheryl can be reached via email at cmuir@restaurantscanada.org. Please join us in welcoming Cheryl to her new role!
Upcoming January Member Receptions
Cheryl and I will be in Calgary on January 14th and Edmonton on January 15th. Members are invited to meet Cheryl and wish me well at one of two member receptions:
- Calgary Member Reception – January 14th between 1:30-3:00pm at Annabelle’s Kitchen Marda Loop 3574 Garrison Gate SW.
- Edmonton Member Reception – January 15th between 1:00-3:00pm at California Pizza Kitchen at Southgate Mall 5015 111th Street NW.
Restaurants Canada President & CEO, Kelly Higginson, and the Executive Leadership Team are also hosting a retirement member reception for me and to introduce Cheryl in Vancouver on January 28th.
- Vancouver Member Reception – January 28th between 4:00pm-6:00pm at Boulevard Kitchen and Oyster Bar 845 Burrard Street.
Members are encouraged to RSVP for the above upcoming member receptions at members@restaurantscanada.org.
Alberta Ad Valorem Wine Markup January 14th Calgary Press Conference
Restaurants Canada and our association coalition will be hosting a press conference highlighting the negative impact of the new Ad Valorem wine markup and once again asking the Alberta government to replace it with a flat liquor tax markup in the 2026 budget. The coalition, including Restaurants Canada, the Alberta Hospitality Association (AHA), the Alberta Liquor Store Association (ALSA), the Import Vintners and Spirits Association (IVSA), Wines BC and Wine Growers Canada, will demonstrate the significant cost increases on the most popular wines sold in Alberta for small businesses and consumers.
For Alberta members interested in attending the press conference, here are the details:
- Ad Valorem Markup Press Conference – January 14th at 10:30 am at Metrovino 722 11th Ave SW, Calgary.
Restaurants Canada and BTAP meeting with BC Agriculture and Food Minister
On December 9th, the Business Technical Advisory Panel (BTAP) of liquor stakeholders held its last formal quarterly meeting with Agriculture and Food Minister (responsible for liquor policy) Popham. The Minister promised to prioritize liquor distribution policy changes addressing concerns raised by Restaurants Canada and other BTAP members during the recent BCGEU strike, which cost an estimated $250 million in lost sales due to licensees being unable to order products from the Liquor Distribution Branch (LDB) for eight weeks.
Restaurants Canada continues to recommend that restaurants and bars be allowed to purchase liquor from BC’s private liquor retailers and streamline the non-stock liquor ordering process, enabling third-party liquor warehouses to directly deliver to licensees, bypassing the LDB warehouses.
Wishing everyone a wonderful start to 2026,
Kelly Higginson
