Restaurants are a supporting pillar of Canada’s food system

With October and the fall Parliament sitting underway, the Restaurants Canada team has been busy meeting with policymakers and raising the profile of our industry as an important player in Canada’s food production and supply system. 

As part of that mission, I had the opportunity to appear before the House of Commons Standing Committee on Agriculture and Agri-Food recently to participate in their study on food security. I also recently participated in the Canadian Centre for Food Integrity’s Public Trust Summit for an important conversation about trust in Canada’s food system. 

These conversations help us build on the strong foundation laid by our submission to Canada’s food security strategy consultation earlier this year and make the case that the restaurant industry plays a key role in Canada’s economy, in supporting Canada’s food producers and in feeding Canadians on a day-to-day basis. 

As I told the members of the House of Commons Agriculture and Agri-Food Committee, with 105,000 locations, 1.2 million employees and $30 billion purchased from Canadian farmers, producers and processors, restaurants are not simply the end of the food chain, but an essential link that connects Canadian agriculture to the 24 million Canadians we serve every day.  

We were encouraged to see several priorities we identified reflected in the Food Security Strategy announced by the government earlier this year, including investments in food terminals and hubs, expanding domestic processing, reducing regulatory barriers and strengthening supply-chain resilience.  

Current trade uncertainty has reinforced the need to build greater domestic capacity, including expanded year-round greenhouse and controlled-environment agriculture. Strengthening Canada’s domestic food supply system can help improve supply reliability, reduce vulnerability to trade disruptions and potentially moderate costs over time. 

We will continue our advocacy on this vital issue and make sure that decisionmakers recognize that the restaurant industry is a key stakeholder in Canada’s food security strategy. 

Tariff remissions update 

As the trade dispute with the U.S. drags on, we continue to advocate for access to tariff remissions for priority products that our industry can’t procure domestically or from non-U.S. sources.  

Recently, I spoke with senior officials responsible for Canada’s tariff response at Finance Canada to reiterate these concerns. I also met with the Hon. Rechie Valdez, Minister of Women and Gender Equality and Secretary of State for Small Business and Tourism, to highlight the impact of tariffs on small businesses, including restaurants, and encouraged her to raise the issue with her Cabinet colleagues. 

Restaurants and their suppliers have already taken steps to diversify their supply chains where possible. Based on feedback from members, we have identified products that are subject to Canadian counter-tariffs, where our industry has not been successful in finding alternative sources and has been forced to absorb the cost of tariffs, including kitchen equipment and parts, and some food-safe packaging. With limited ability to absorb additional costs, operators face a difficult choice: accept further pressure on already-thin margins, pass costs on to consumers through higher menu prices, or defer planned investments.  

We’re making the case that a targeted, time-limited remission would provide the reasonable transition period businesses need to develop Canadian and other non-U.S. sources, while protecting food affordability, employment and investment during the transition. 

We will continue to keep you updated as the situation develops. 

Advocating for Ontario restaurants 

Our VP of Central Canada, Jason Lagerquist and I hosted a table of members at the latest Empire Club luncheon to hear Premier Ford deliver his annual address in advance of the upcoming fall legislative session called State of the Province: Our Plan to Protect Ontario in Action. 

It was a valuable opportunity to re-engage with Premier Ford and Ontario Ministers ahead of the fall legislative session. We reinforced the challenges facing foodservice operators and highlighted how rising operating costs and ongoing economic pressures are affecting their bottom line and limiting their ability to grow, invest and create jobs. 

We also shared recent data and insights on the economic pressures facing Ontario consumers, including the impact on discretionary spending, restaurant visits and overall foodservice demand. These discussions helped reinforce the connection between consumer affordability, the viability of restaurant businesses and the broader economic contribution of our sector.  We identified several critical policy issues requiring renewed engagement with Premier Ford and the Ministers of Small Business, the Environment, and Finance. 

In case you missed it: Foodservice Facts webinar recording 

Last week, Chris Elliott, Restaurants Canada’s Chief Economist and Vice-President of Research, presented the latest trends, industry insights and forecasts from our 2026 Foodservice Facts report. If you missed it, you can now watch a recording of the webinar here. 

And don’t forget to download your copy of Foodservice Facts, exclusive to Restaurants Canada members. In an environment of intense economic pressure and uncertainty, one of the most powerful tools at our disposal in making sound business decisions is evidence-based analysis, and that is exactly what Foodservice Facts is designed to do. 

New Visa transaction fee 

Restaurants Canada is aware of a new Visa transaction fee expected to take effect in April 2027, as recently reported. The announced fee is US$0.018 per domestic transaction or approximately 2.6 Canadian cents per domestic transaction, based on the current exchange rate. While further details on implementation and how the fee may be passed on to merchants remain to be confirmed, it could represent an additional cost for foodservice operators. 

We are assessing the potential impact on the restaurant industry and will continue to monitor developments as more information becomes available. 

Update on Work Permit Extensions and LMIA Processing 

We know how difficult it is for restaurant operators when valued team members face the expiry of their work permits while waiting for a Labour Market Impact Assessment (LMIA) to be processed. We want to make members aware of a recent IRCC change that provides temporary flexibility in these circumstances. Under a new temporary measure, IRCC will not make a final decision on a work permit extension application until a valid LMIA or Quebec Acceptance Certificate (CAQ) is received. Practically, this means eligible workers with pending work permit extension applications will not have their applications refused solely because their LMIA is still being processed. This can help workers avoid a refusal while waiting for the required documentation, although it does not guarantee approval of the extension or change the conditions under which they can work. 

Restaurants Canada has been raising concerns about LMIA processing delays with government and welcomes this development. Employers should continue to apply as early as possible and submit a valid LMIA upfront whenever available. Applications refused before this measure may be eligible for reconsideration through IRCC’s facilitative process if the LMIA was issued within 30 days of the refusal. This is a temporary measure under internal guidance, not a regulatory change. Read IRCC’s FAQ here. 

With gratitude,

Kelly Higginson