Standing up for Foodservice in a Trade War

5 août 2025 Share on your social channels

At the heart of our industry are leaders who drive progress, elevate standards, and create lasting impact. Today, we are honoured to recognize them. Our award winners are not just celebrated, they are also headlining the path forward.  

Before the public announcement, we’re excited to share with our members a first look at this year’s winners.  

Meet the 2025 Restaurants Canada Awards of Excellence Recipients:  

Legacy Award – Cora Tsouflidou, Founder, Cora Breakfast & Lunch 
Leadership Award – Julie Denton, Chief People Officer & Chief Technology Officer, Recipe Unlimited Corporation  
Culinary Award – Chef Chris Commandant, National Arts Centre & Ontario Director and Secretary of the Indigenous Culinary of Associated Nations (ICAN)  
Emerging Leader Award – Chef Nick Chindamo, Naturalist & Wild Food Educator, The Inn at Bay Fortune  
Social Impact Award – La Tablée des Chefs 
Environmental Stewardship Award of Recognition – A&W Canada

Join us at One Table on Tuesday September 16, 2025 to celebrate these remarkable individuals and their outstanding contributions to the future of our industry! 

Meeting Canada’s Premiers in Huntsville, Ontario

I was honoured to have participated in an engaging evening with Canada’s Premiers in Huntsville, Ontario, at the recent Council of the Federation meeting, where I had many productive discussions on strengthening the Canadian economy and recognizing the pivotal role of the foodservice industry in this vision.

Restaurants Canada appreciates the leadership of our Premiers and their dedication to key priorities that enhance communities and strengthen businesses nationwide:

Ongoing efforts to diminish interprovincial trade barriers
Addressing pressing workforce challenges
Advancing bail reform
Strengthening the national economy

Highlighting the significant contribution of the restaurant sector across all regions, we shed light on the impact of trade tensions on the industry along with labour shortages in rural, remote, and tourism-driven areas.

We strongly support the joint call from Canada’s Premiers for a more adaptable and region-specific immigration system. With over 78,000 unfilled positions, especially in roles like cooks and in remote and tourist-centric areas, the support for workforce solutions tailored to regional needs is critical.

Our industry employs 1.2 million Canadians, including newcomers and youth, and we stand prepared to champion workforce strategies that align with regional dynamics. Please see our statement.

Research and Insights

The latest issue of The Quarterly Report is now available. As a Restaurants Canada member, you gain exclusive access to research, insights, and data to help grow your business. Use these tools to build plans, benchmark performance, spot trends, and stay ahead of the competition. Future-proof your operations with trusted resources designed for your success.

The foodservice outlook improved slightly in Q2 2025, driven by some slight easing of trade tensions and modest consumer confidence gains, but remains fragile due to cost pressures and economic uncertainty. Sales are projected to grow modestly or decline slightly through 2026. Most operators report low profitability, with rising food and labour costs forcing price hikes and cutbacks. The GST/HST holiday boosted early 2025 sales, prompting calls to permanently exempt all food from the tax.

GOVERNMENT RELATIONS & PUBLIC AFFAIRS UPDATE

From Richard Alexander | Executive Vice-President, Government Relations & Public Affairs

Standing Up for Foodservice in a Trade War

The Restaurants Canada team has been working relentlessly to shield our industry from the escalating cost pressures of Canada’s retaliatory tariffs. Our primary focus has been on securing remission (exemptions) for U.S. food products essential to restaurant operations.

The implementation of Customs Notice 25-19 imposed unexpected financial burdens on tens of thousands of foodservice businesses reliant on cross-border trade. On May 20, following widespread confusion, the CBSA issued revised guidance that narrowed the scope of the remissions order—excluding goods used in food preparation and most packaged food products in restaurants and retail.

This change is already costing our industry tens of millions of dollars per month, with national chains and independent restaurants alike feeling the impact.

In June, President and CEO Kelly Higginson and I met with senior officials at the Department of Finance in Ottawa. While no commitments were made, there was a clear signal: if we build a strong economic case, change is possible.

With the help of our Tariffs Working Group, we quickly developed an impact assessment outlining the cost to industry and national food affordability. A formal letter requesting the inclusion of foodservice in the remission order was sent to Finance Minister François-Philippe Champagne on July 22. Follow-up meetings are now being scheduled to press our case.

Federal Pre-Budget Submission: A Bold Plan for Restaurants

As part of the Fall Budget consultations, Restaurants Canada submitted a comprehensive set of recommendations to the House Standing Committee on Finance—reinforcing advocacy priorities we’ve advanced over the past year:

Top Recommendations:

Permanently exempt all food, including restaurant meals, from GST/HST to lower costs and stimulate foodservice growth.
Prioritize immigration to rural, remote, and tourism-dependent regions to address critical labour shortages.
Reduce EI premiums from 1.64% to 1.58% to ease payroll pressures.
Launch a national jobs and training program for newcomers modeled on “Ready to Work” to improve integration and staffing.
Introduce a sector-specific technology investment incentive for restaurants.
Extend the accelerated investment incentive to include foodservice.
Permanently scrap the automatic alcohol excise tax escalator to help restaurants manage input costs and protect menu affordability.

We’ve also been working to secure an appearance before the Committee to speak to these recommendations—another opportunity to elevate the industry’s voice.

Red Tape: Cutting Costs, Not Corners

The federal government has launched a fast-track consultation to eliminate outdated and duplicative regulations. Our Federal Government Relations Committee has submitted bold proposals in key areas that burden our members:

Interprovincial regulatory overlap
Sustainability standards
Food inspection inefficiencies
Immigration system challenges

We continue to push for smart regulation that supports—not stifles—restaurant growth and innovation.

SUSTAINABILITY UPDATE

From Jillian Rodak | Vice President, Sustainability

August Sustainability Committee Meeting

On August 7, the Sustainability Committee will hold its monthly meeting. We have invited Éco Entreprises Québec (ÉEQ), the organization for Quebec’s Extended Producer Responsibility (EPR) packaging recycling program, to provide an update to members on their request to the Quebec government for cost containment measures and their proposal to delay or remove certain EPR requirements for the Industrial, Commercial and Institutional (ICI) sector. Additionally, the committee will discuss sustainability developments at the federal, provincial, and municipal levels.

Federal Engagement on Plastics and Red Tape

Earlier in July, Restaurants Canada met with ECCC to discuss their ongoing plastics workstreams and provided feedback on the Federal Plastics Registry. We also submitted written feedback on Phase 2 of the Registry on July 24, including a recommendation to delay all reporting requirements. In addition, we have been monitoring the federal government’s Red Tape Review for opportunities to reduce sustainability-related requirements on members.

Proposed Expansion of City of Toronto’s Single-Use and Takeaway Items Bylaw

Restaurants Canada was invited to participate in a preliminary interview with the City of Toronto as they explore expanding the Single-Use and Takeaway Items (SUTI) bylaw, as they consider expanding the bylaw to include:

Large venues (such as event venues and stadiums)
Mandating the use of reusable plates and cutlery for dine-in service
Allowing customers to bring their own food containers (expanding on the current allowance for reusable mugs/tumblers)

On July 25, Restaurants Canada met with the City’s consultant and emphasized the impacts the current bylaw has had on restaurants and requested a review of its effectiveness before introducing additional requirements. We also raised concerns about harmonization, operational challenges, and health and safety considerations.

The City will launch a stakeholder survey in the coming months, with further opportunities for engagement this fall. A final report is expected to go to City Council in January 2026.

ATLANTIC UPDATE

From Janick Cormier | Vice-President, Atlantic Canada

Last week, Prime Minister Carney announced that the federal government would cut transportation costs in Atlantic Canada. As of Friday August 1st, Confederation Bridge tolls will be reduced to $20, and by 50% for passengers, vehicles, and commercial traffic on the following ferry routes:

Wood Islands, Prince Edward Island, and Caribou, Nova Scotia (NFL).
Saint John, New Brunswick, and Digby, Nova Scotia (BFL).
Îles-de-la-Madeleine, Québec, and Souris, Prince Edward Island (CTMA).
Marine Atlantic routes between Newfoundland and Labrador and Nova Scotia

This is wonderful news for Atlantic Canada, and particularly welcomed news for our members in smaller tourism-oriented communities who will surely benefit from an increase in visitors.

New Brunswick

David Myles, MP for Fredericton-Oromocto, is currently conducting a survey of members of the Fredericton business community to assess the impact of recent federal immigration policy changes to business operations in the community. I invite members in the Fredericton area to fill out the survey and share their thoughts.

Newfoundland and Labrador

A reminder that the new digital training More Than Service is free for members in Newfoundland and Labrador.

This is an online platform designed to support front-of-house staff—including servers, bartenders, and hosts—by teaching the essential steps of service and the important distinctions between service and hospitality. The training guides participants through the full customer journey in a restaurant setting, from the first point of contact to the final good-bye.

To register, please visit https://www.morethanservice.ca/sign-up and enter the password: morethanservice2025

CENTRAL CANADA UPDATE

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

Ontario:

Immigration

Kelly and I recently met with Labour, Immigration, Training and Skills Development Miniter David Piccini’s office to talk about labour shortages in our industry. We shared our support for Canada’s premiers calling on Ottawa to make changes to immigration policy to ensure employers, particularly those in remote, rural, and tourism communities, have access to the labour they need to keep their doors open.

GST Campaign

I’ve reached out to more than 40 MPs from Central Region to ask to speak with them about Restaurants Canada’s call for the GST to be removed from restaurant meals. I’d like thank Niagara South MP, Fred Davies, for taking the time to speak with me about our ask and why delivering on it would be helpful to both working Canadians and restaurant operators and their employees.

Government of Ontario Offering Grants up to $5,000 for Investment in Digital Technology for Small and Medium Sized Businesses

As shared last month, please see this reminder about the Ontario government’s new grant for digital adoption.

Manitoba:

Crime Grant

As crime and public safety continue to rank as top concerns for our Manitoba members, Shaun Jeffrey (CEO of MRFA) and I wrote to the Justice Minister to ask the Government of Manitoba to move forward with its commitment to implement a $10M Business Security Rebate Program. We reiterated our call for a program that is specifically responsive to the foodservice industry, and that is widely open to independent, franchised, and other restaurants.

Taste of Manitoba – August 28 – Sept 1

I am looking forward to joining MRFA at its Taste of Manitoba Event in Winnipeg. This premier event features live music and an opportunity to enjoy some of the province’s most incredible, fun, and iconic food creations. The event expects to draw 7-10K visitors, and will also be well attended by industry, sponsors, and elected officials. To learn more about the event, see here.

WESTERN UPDATE

From Mark von Schellwitz | Vice-President, Western Canada

Alberta Announces new Canada-Alberta Productivity Grant

On June 23^rd the Ministry of Jobs, Economy, Trade and Immigration announced a new Canada-Alberta Productivity Grant (CAPG) to replace the previous Canada-Alberta Job Grant program that many members utilized to help with their labour challenges. The program aligns with Alberta’s efforts to increase productivity and help employers invest in skills training.

Employers can use the new program to help their business increase efficiency and stimulate innovation, while equipping Albertans with the skills needed to meet the demands of a rapidly evolving economy. The Alberta government will provide 50% of the total eligible training costs up to $5,000 per trained employee per year. If hiring and training an unemployed Albertan, up to 75% of eligible training costs could be covered up to a maximum of $10,000 per year. An individual employer is eligible for up to $100,000 in grant funding per year.

More information on the new CAPG program, eligibility criteria, and how to register for upcoming online information sessions can be found here.

AGLC Announces New Board Chair

Today the AGLC’s CEO Kandice Machado announced that Larry Spagnolo has been appointed the new Chair of the Board effective August 15^th, 2005. More information on the announcement can be found here. Restaurants Canada enjoyed a positive working relationship with outgoing AGLC Chair Len Rhodes over the past six years and would like to thank him for his positive contributions to Alberta’s liquor industry and AGLC board leadership during time as Chair.

BC Cabinet Shuffle

On July 17^th Premier Eby announced a cabinet shuffle and new ministerial responsibilities that have implications for the hospitality industry. Of particular interest to members is the return of Minister Kahlon as Minister of Jobs, and Economic Growth, Minister Anne Kang becoming the new Minister of Tourism, Arts, Culture, and Sport, and current Agriculture and Food Minister Lana Popham being given the added responsibility of Minister responsible for liquor. Minister Popham also retains her role as the lead minister for the restaurant industry. Here are the mandate letters for those new Ministers:

Restaurants Canada looks forward to reaching out and working with these Ministers in their new roles to advocate for hospitality industry priorities. Given her new role as Minister responsible for liquor, Minister Popham participated in an introductory meeting with Restaurants Canada and other Business Technical Advisory Panel (BTAP) liquor stakeholder members on Friday July 25^th.

With gratitude,