A fresh wave of MPs will soon be settling in – a critical moment for Restaurants Canada to introduce who we are.
It’s been an exciting and highly engaged time at Restaurants Canada as we wrapped up a successful RC Show 2025 and launched into our Regional Townhall series across the country. That momentum will carry forward in the weeks ahead as Parliament resumes in Ottawa—and Restaurants Canada will be there to make an impact.
A fresh wave of MPs will be settling in—many new to Parliament and others transitioning between roles in government and opposition. As they begin to set their priorities, build relationships, and get to know the issues that matter in their ridings, this is a critical “back-to-school” moment for Restaurants Canada.
It’s a key opportunity to introduce who we are, establish our credibility, position our sector as one of significant impact in all communities and create meaningful early connections—so that when it’s time to engage on policy, we’re already seen as a trusted and knowledgeable voice. With a strong strategy in place, all our efforts are aligned toward one goal: to be the leading trade and business association in Ottawa. By aligning with government priorities and advocating for opportunities within our sector, we are well-positioned for continued success.
See our letter of congratulations to Prime Minister Mark Carney here.
Building a resilient Workforce for Canada’s restaurant industry
As all of us within the industry know, Canada’s restaurant and foodservice industry is a vital economic driver, employing 1.2 million people—6% of the national workforce—and anchoring communities nationwide. However, it faces critical labour shortages driven by restrictive immigration policies, demographic changes, and public misperceptions about the sector. These challenges are most severe in rural, remote, and tourism-dependent regions.
Unfortunately, public opinion on immigration has reached its lowest point since the mid-1990s, and we are now confronting significant challenges not only due to this sentiment, but also because of housing shortages and other issues closely linked to immigration. This has been the primary reason for much of the pullback on immigration across the country.
By 2030, the industry is expected to grow by 200,000 jobs (a 17% increase from 2023). To sustain this growth, the sector requires consistent access to talent, better public understanding, and strategic policy support.
To build a stable, future-ready workforce, we are:
- Conducting comprehensive research into workforce needs and industry trends
- Developing tailored workforce policies by region
- Launching a public awareness campaign to improve perceptions of the sector
- Supporting informed immigration and recruitment strategies along with other solutions such as tax credits for capital investment in automation and technology
This strategy will strengthen the industry’s economic and social role, benefiting businesses and workers across Canada—from major chains to local independents.
This initiative is a long-term effort. We are conducting research with KPMG through June, developing policy and regional solutions over the summer and fall, and continuing to educate the government on industry labour shortages. The timing of the public campaign will depend on polling and policy progress.
In case you missed it: Member-only regional town halls
Thank you to everyone who joined our recent regional town hall sessions! We appreciated the opportunity to connect and share important updates. Attendees heard valuable insights from our Chief Economist, Chris Elliott, on the latest Quarterly Report results, as well as updates from our Regional Vice Presidents on advocacy efforts. EVP Richard A. also provided an overview of federal activities, the upcoming GST campaign, and our workforce initiative. You can access the recordings here.
If you haven’t already, we encourage you to explore the research and analysis produced by our team—solid data and timely insights are essential for strong business planning, especially in today’s uncertain environment. You can access the latest Quarterly Report here.
We’d also like to highlight our Monthly React Survey Dashboard, which is available here. This resource offers valuable trends and feedback from across the industry.
Sign up for our next webinar on tipping with Atlas Top Management
Looking ahead, we’re excited to invite you to our upcoming webinarpresented by Atlas Tip Management on May 27th at 11:30 EST. Join Afshin Mousavian, Co-Founder of Atlas, for a practical look at how automated tip management is transforming the industry. Hear about updated provincial regulations for tip management and learn how improper tip management can cost operators over $30K per $1M in sales. REGISTER HERE
Don’t forget to check out the Tipping Toolkit, designed to help operators stay informed on CRA rules and regulations around tipping. We strongly recommend all businesses handling tips review this resource to ensure compliance and protect your operations.
They’re Back! Nominate Now for the Restaurants Canada Awards of Excellence!
We are also excited to announce that the Restaurants Canada Awards of Excellence are back — and nominations are now open!
These peer-nominated awards honor the people who are shaping the future of foodservice: bold leaders, rising stars, culinary innovators, sustainability champions, and community builders.
Know someone making a real impact in our industry? Nominate them today. Winners will be recognized and celebrated on September 16, 2025.
GOVERNMENT RELATIONS & PUBLIC AFFAIRS UPDATE
From Richard Alexander | Executive Vice President, Government Relations and Public Affairs
Food Tax Fairness For All
Why now is the time to advocate for removal of GST on restaurant meals
Success in advocacy depends on several variables, most important of which is the priorities of the government. Governments like to give the public what they want and need. Interjecting our industry into the direction of government policy is a far more effective than trying to get a government or Canadians to change direction.
The direction Canadians want now is affordability. Consumer confidence in Canada is at the lowest level ever recorded and the tariff war is likely to result in rising unemployment inflation and a possible recession.
Is the GST in play?
In the recently federal election, all parties recognized that the GST is a good, if not the best, tool to deal with affordability.
Every major political party had something on GST in their platforms.
Our GST removal asks to political parties before and during the election resulted responses ranging from awareness to support.
The GST/HST holiday increased spending and jobs
Statistics Canada’s recently released data shows conclusively that the tax holiday was a success.
Nationally, restaurant sales increased 8.7% for table service restaurants and 8.7% for quick service, with some provinces experiencing double digit increases as high as 18.4%.
The industry also created jobs during the holiday. In January, the slowest month for many operators, our industry created nearly 5,000 new jobs.
Politics is about timing and the timing looks good
The GST/HST holiday is fresh in the minds of Canadians and politicians – we don’t have to educate people about what removing the tax will mean.
The elected liberals are the government that implemented the tax holiday.
The public liked the tax holiday. Polling commission by Restaurants Canada at the beginning of February just before the end of the holiday showed:
- 74% of Canadians wanted the tax holiday extended
- 84% said taxing food is just plain wrong
Restaurants often get left out
Trudeau’s original proposal for the GST/HST Holiday excluded restaurant meals and alcohol. Our advocacy resulted in us being included, but without our persistent voice, restaurants would have been left out.
In the recent federal election, the NDP promised to remove the GST on food – but only for food purchased in grocery stores. In the last provincial election in NS, the Liberals promised the same.
Grocery is our competitor, and our exclusion from the tax holiday would have shifted food dollars away from restaurants and into grocery. When the GST was introduced in 1991, an Ernst & Young study, commissioned by Restaurants Canada, showed a 7.3% drop in restaurant sales directly attributable to the introduction of the GST.
A recent interview with Dalhousie University’s “Food Professor” Sylvain Charlebois in response to Restaurant Canada’s recent calls for eliminating the GST on food, shows how some see incongruity between affordability and practical living. Canadians depend on restaurants for nourishment. You can hear the interview here at the 6:10 mark.
Final Thoughts
If there was no tax on restaurant meals today and government was proposing to add 5% on our sales, the industry would go wild, just as it did in 1991. Restaurants Canada fought three campaigns to keep the PST off restaurant meals in Western Canada and won all three.
This moment is likely the best opportunity our industry will ever have to remove this blatantly unfair tax on our sales. We need to try.
You can help. Watch for our Food Tax Fairness Campaign in the next couple weeks and add your voice to the campaign by sharing, promoting and signing the petition.
SUSTAINABILITY UPDATE
From Jillian Rodak | Vice President, Sustainability
Federal Election Outcome and Sustainability Implications
With the re-election of the Liberal Party under new leader Mark Carney, we are monitoring for sustainability and packaging policy. Regulatory work on plastics is expected to remain a focus, although a pending Federal Court of Appeal ruling on whether the federal single-use plastics ban will remain in effect may impact those initiatives and will shape our future engagement.
The government has also committed to advancing sustainable finance by finalizing voluntary guidelines for sustainable investments and establishing mandatory climate risk disclosure requirements for Canadian companies, including a proposal to amend the Canada Business Corporations Act to introduce climate-related disclosure obligations.
In the weeks ahead, Restaurants Canada will engage with newly appointed Environment and Climate Change Canada political staff to introduce ourselves and the sustainability issues impacting our industry.
May Sustainability Committee Meeting
On May 1, the Sustainability Committee held a productive meeting to debrief on the recent federal election and share updates on key sustainability files at the provincial and municipal levels. A significant portion of the discussion focused on extended producer responsibility (EPR) transitions—most notably the Blue Box program in Ontario—and ongoing engagement with municipalities on industrial, commercial, and institutional (ICI) waste.
QUEBEC UPDATE
As of May 7, 2025, Quebec has implemented new regulations under Bill 72 that change how tips are calculated and presented.
- Tips Calculated on Pre-Tax Amounts: Businesses such as restaurants, bars, cafés, and taxis must now calculate suggested tip amounts based on the pre-tax subtotal, rather than the total amount including taxes. For example, a 15% tip on a $100 pre-tax bill would be $15, instead of $17.25 if calculated on a $115 total with taxes.
- Neutral Presentation of Tip Options: Suggested tip percentages (e.g., 15%, 18%, 20%) must be displayed neutrally on payment terminals. No option should be highlighted or emphasized over others, ensuring that customers are not unduly influenced in their tipping choices.
- Tipping Remains Optional: Customers retain the right to manually enter a custom tip amount or choose not to leave a tip at all. The new regulations reinforce that tipping is voluntary and at the discretion of the customer.
These rules are now in effect, so we advise you to update your point-of-sales system as soon as possible to be in compliance if you have not done so yet.
ATLANTIC UPDATE
From Janick Cormier | Vice-President, Atlantic Canada
Newfoundland and Labrador
We received fantastic news out of St John’s on May 6th. City council voted to slash patio fees (parklet program) by 85%! This is a huge win for our operators in downtown St John’s who had to pay fees up to 5 times more than those of downtown Toronto.
This comes just in time for this summer’s patio season!
In political news, Newfoundland and Labrador now knows who their 15th Premier will be. As you know, Premier Andrew Furey resigned back in February. Since then the Liberal Party has been undergoing a leadership race to find their new leader and next Premier. John Hogan, MLA for Windsor Lake, won the race on May 4th with 78% of the vote. Hogan was most recently Minister of Health and Community Services until he resigned to run for the Liberal Party’s leadership. A reminder that this is an election year in NL, and we expect an election to be called anytime before October.
New Brunswick
Our lobby campaign on accessing foreign labour is in full swing! Thank you to members who have already sent requests to meet with their local MLAs. I’m looking forward to getting your feedback.
I was encouraged to hear Immigration Minister D’Amours’ announcement that he will be seeking an exemption to the federal government’s immigration cuts as soon as the new federal cabinet is sworn in. This will take place the week of May 12th so we’re hoping that Minister D’Amours will make his request very soon.
Following this announcement, I issued a statement of support for this exemption. Our industry is already short 1,500 employees. Without access to much-needed foreign workers through the Provincial Nominee Program (PNP) and the Atlantic Immigration Program (AIP) this labour shortage will only get worse and its effects will soon be felt by customers.
Let’s continue to push our local MLAs on this major issue. We hope the province will be successful in getting the exemption, but if it does, we need the provincial government to reverse its decision on who can access labour through PNP and AIP.
Nova Scotia
On May 8th, I made my way to Halifax to meet with Tourism Minister Dave Ritcey and Economic Growth Minister, Colton LeBlanc, along with Natasha Chestnut from RANS. We went over the current state of the industry and how government policy is affecting our members. More precisely, we explained how their increase in minimum wage disproportionately affects our industry due to how much labour is needed to operate a restaurant.
This was also an opportunity to advocate for a wage support program and an increase to the NLSC’s discount for licensees as ways to mitigate this dramatic increase in labour costs.
The conversation was constructive and we hope to be able to continue working with Ministers Ritcey and LeBlanc to support the food-service industry in Nova Scotia.
CENTRAL CANADA UPDATE
From Kris Barnier | Vice President, Central Canada and the North
Ontario
More WSIB relief is on the way: The Government of Ontario has announced that in early June, it will distribute $2B in surplus WSIB relief, which is in addition to the $2B it returned earlier this year.
The Government has been responsive to our requests for cost relief and help as many in our industry struggle to protect restaurant locations and jobs. We have worked to help Premier Ford, Labour, Immigration and Skills Development Minister Piccini, and Finance Minister Bethlenfalvy understand that the foodservice industry is labour-intensive and benefits from relief on payroll taxes and premiums, including WSIB.
With thanks to sound management and a strong safety record, earlier this year, the Ontario Government returned $2B in WSIB surplus funds to Ontario employers, representing a rebating of 60.3% of annual premiums. With the latest round of WSIB surplus refunds, we estimate this likely means roughly $7.5K-$10K savings for an average restaurant location.
Ontario Skills Competition: It was my pleasure to attend the Skills Ontario VIP Breakfast and Skills Competition. The event included remarks from Premier Ford, Finance Minister Bethlenfalvy, Labour, Immigration and Skills Development Minister Piccini, and other members of the cabinet, all of whom spoke about the important steps Ontario is taking to protect jobs and jobs creators, and toward making record investments in skills training.
The event also served as an inspiring opportunity to watch young Ontarians show off their stuff, including in culinary and restaurant service.
Engaging Government on Public Safety, Labour, and EPR: I am engaging with elected officials, key government staff, and other stakeholders about a few key priorities. On public safety, I am sharing how many of your businesses, patrons, and employees are impacted by crime and other safety issues that threaten their and your physical and financial wellbeing. On labour, I am sharing challenges many of your businesses are having with filling specific types of positions and/or positions in remote and rural areas where your labour needs aren’t being met by the local populations. And I am speaking with government and other stakeholders about the significant cost of EPR and the need for short and long-term solutions to mitigate cost and administrative burden, address fairness, and to help improve program outcomes.
Manitoba
Security Rebates for Business: In direct response to joint advocacy from Restaurants Canada and MRFA, the Manitoba Government allocated $10M to help Manitoba businesses protect their businesses, patrons, and employees from crime.
We are pushing the government to ensure that the program design is directly responsive to the unique realities and needs of foodservice businesses. This will continue to be a top priority as we await program details from the Government of Manitoba.
WESTERN UPDATE
From Mark von Schellwitz | Vice-President, Western Canada
Bill 11 Introduced to Remove Employee Sick Note Requirement – Regulation Consultation
In late April the BC government introduced Bill 11 The Employment Standards Amendment Act which, if passed and implemented, will restrict employers from requiring employees to provide a sick note from a physician, nurse practitioner, or registered nurse for a short-term absence from work. The objective is to restrict sick notes to alleviate some strain on the healthcare system by reducing the administrative burden on certain healthcare professionals.
While Bill 11 provides the basis for restricting employers’ ability to request sick notes, some details of the restriction will be set out in regulations to be developed before Fall 2025. The Ministry of Labour is seeking input from key stakeholders including Restaurants Canada and its members to inform the development of these regulations and has prepared the following engagement paper as a guide for feedback by June 20th. Members are encouraged to provide Restaurants Canada with any feedback or questions and provide feedback directly to the Labour Ministry via email at labour.policy@gov.bc.ca.
Wishing you all a wonderful start to patio season,
Kelly Higginson
