Advocating for restaurants ahead of this week’s federal budget

2 novembre 2026 Share on your social channels

Last week, Restaurants Canada’s Q3 Quarterly report highlighted the continued troubling disconnect between restaurant sales and profitability. Despite stronger-than-expected sales growth in 2026, two-thirds of restaurant operators report lower profitability than a year ago. These findings reinforce that rising operating costs are outpacing sales growth, putting significant pressure on already thin margins.

Advancing our priorities in Ottawa

Reducing the cost of doing business, encouraging investment and addressing labour force challenges remain central to our advocacy with governments. The federal budget is being tabled this Thursday and Restaurants Canada will participate in the government’s budget lock-up and briefing with officials, allowing us to assess the measures being announced and their implications for our industry. We will share our analysis with members following the budget’s release.

Last week, our team met with Finance Canada, Agriculture and Agri-Food Canada, including Canada’s Chief Agriculture Negotiator, and staff to the Minister responsible for Canada–U.S. trade to continue pressing for relief from Canada’s retaliatory tariffs on essential restaurant equipment and packaging.

We also met with senior Immigration, Refugees and Citizenship Canada officials to reinforce the industry’s labour force needs ahead of the federal government’s new three-year immigration levels plan. Access to workers remains critical to the industry’s ability to operate and grow.

Continued advocacy on food security

Last week, I appeared before the Standing Senate Committee on Agriculture and Forestry as part of its study on food security in Canada, building on my recent appearance before the House of Commons Agriculture and Agri-Food Committee. Both appearances focused on our recent submission to the federal government’s food security strategy consultation and reinforced the importance of including restaurants in shaping Canada’s food security policies.

Our message to both committees was clear: Restaurants are an essential part of Canada’s food system—they employ 1.2 million Canadians, purchase $30 billion worth of products from Canadian farmers, producers and food processors, and serve 24 million visitors daily. Rising costs throughout the food supply chain affect farmers, processors and restaurant operators—and ultimately, food affordability for Canadians.

Dairy Pricing Update

As we informed members last Friday, the Canadian Dairy Commission (CDC) announced that milk component prices will increase by 2.8%, effective February 1, 2027. The impact will vary by product, depending on the individual milk components used.

While we recognize that any price increase places an additional burden on operators, we are pleased with the CDC’s decision to moderate its initial proposal of a 3.5% increase and suspend its National Pricing Formula for this year.

Ontario – tax competitiveness and EPR framework

As we informed members last week, the Ontario government announced two measures of importance to restaurants. The proposed Ontario Tax Competitiveness Credit would provide tax relief for eligible capital investments, complementing the federal Productivity Mega Deduction that Restaurants Canada advocated for.

The government also proposed changes to Ontario’s extended producer responsibility (EPR) framework, following our sustained advocacy to address rising recycling costs for restaurant operators. We are assessing whether the proposed changes go far enough to provide meaningful cost relief and will continue pressing for improvements

Garland Canada Culinary Competition: Apply today

We are still accepting applications for the Garland Canada Culinary Competition at RC Show 2027 and I encourage every operator to put forward their rising stars. Selected candidates will compete live on stage in front of industry leaders, gain recognition, and build confidence and connections that can shape a career. Applications close November 18, 2026.

What are Canadians ordering, and how are preferences changing across generations?

Our latest Food & Beverage Trends Report explores the changing tastes and preferences of Canadian diners, from comfort food favourites to emerging global flavours and evolving beverage choices. Drawing on research from Ipsos and Angus Reid, the report offers practical insights to help operators make informed menu and business decisions. Thank you to Groupex Canada for supporting this valuable research for our industry. Download the report to explore the trends influencing Canadian menus and consumer demand.