Today’s food affordability announcement by the federal government
Earlier today, Prime Minister Mark Carney announced a package of affordability measures to assist low- and middle-income Canadians with the escalating cost of food and other essentials.
Central to the announcement is a 25% increase to the GST credit for five years beginning in July 2026, along with a one-time 50% top-up in 2026. The federal government estimates these measures could provide up to $1,890 this year for a family of four and approximately $1,400 annually over the following four years, while single Canadians could receive up to $950 this year and about $700 annually thereafter.
The Prime Minister also announced funding related to food security and supply chain stability, including $500 million from the Strategic Response Fund to support businesses facing supply chain disruptions and a new $150 million Food Security Fund focused on small and medium-sized enterprises. The government indicated it will develop a National Food Security Strategy, which would address domestic food supply, access to affordable and nutritious food, unit price labelling to support price transparency, and competition enforcement across food supply chains. These measures still need to be tabled in the House of Commons, which returned today, and adopted into law before they come into effect. The government is targeting June 2026 at the latest to start issuing the one-time top-up payments.
This announcement is a move in the right direction to address the real challenges that Canadians are facing with escalating food costs, an issue we have been actively discussing with the federal government and parliamentarians over the past year.
The enhanced GST credit may provide some support to a segment of our industry by helping the hardest-hit Canadians afford daily essentials, including meals purchased from restaurants. But we also recognize that today’s announcement does not address the fundamental challenges our industry is facing. We will continue to work with the government on broader affordability measures, including seeking an exempting all food from GST.
Read our full reaction here.
Engaging government and the media on affordability
The Restaurants Canada team has had an impactful start to the year, with more than 50 media interviews in the first three weeks of 2026. The big topic of discussion has been affordability and how the pull-back in consumer dining is impacting the foodservice sector.
We continue to actively engage with government on policy solutions, including ongoing efforts to remove GST from all food through our foodisfood.ca campaign.
As reflected in our December REACT Survey, Canadians’ restaurant visits fell to their lowest level of the year, with the Consumer Dining Index dropping to 85.1, down from 92.1 in December 2024. Affordability pressures were the main barrier, cited by 42% of Canadians, while winter weather also limited visits. Weaker demand combined with rising food, labour, and operating costs is creating significant financial strain for restaurants entering 2026.
We closely monitor this data to ensure we provide government with the most up-to-date insights on how these issues affect operators, consumers and the broader economy.
We understand that the past few months have been challenging, and the road ahead remains uncertain for our industry. That is why the Government Relations team is focused on identifying opportunities to reduce operating costs, address affordability concerns, and stabilize the workforce.
Mark von Schellwitz and our new VP for Western Canada, Cheryl Maitland Muir, held a successful press conference in Calgary on January 14 with a group of industry stakeholder partners on Alberta’s unfair Ad Valorem tax on wine. The press conference received significant media coverage and has advanced the issue in conversations with government.
We are also laying the groundwork for our workforce and immigration campaign starting with geo-targeted ads in Quebec City for the Cabinet retreat, Calgary for the Conservative Convention and Ottawa for the return of the House of Commons this week. This strategy ensures that Ministers and MPs are already primed to receive our message when we launch the full campaign next month, and when we sit down in meetings with them.
Please read the VP updates below for more details on these and other initiatives.
Women in hospitality to take center stage at RC Show 2026
Restaurants Canada is proud to announce that women in hospitality will take centre stage as a key focus of RC Show 2026, taking place Sunday, March 8 to Tuesday, March 10 at The International Centre in Mississauga. Building on the momentum of International Women’s Day (Sunday, March 8), RC Show’s Women in Hospitality Day (Monday, March 9) will highlight the achievements, creativity and leadership of women shaping the future of foodservice and hospitality.
Presented by PepsiCo, Women in Hospitality Day will feature a compelling programming lineup and an exclusive Networking Reception — an in-Show extension of Restaurants Canada’s dish. event and content series created to help connect, elevate and empower women leaders and rising stars in hospitality and foodservice. The reception leads directly into a fireside keynote with Janet Zuccarini, Founder and CEO of Gusto 54 Restaurant Group. As one of Canada’s most influential hospitality leaders, Zuccarini will share the philosophies and leadership insights that have shaped her career and personal journey, offering a rare and candid look at what it takes to build enduring restaurant brands and resilient teams.
Additionally, I’m absolutely thrilled to see the partnership between Restaurants Canada and WORTH Association come to life! As part of RC Show’s Women in Hospitality programming, the WORTH Association will host Yes Shef’s first-ever Greater Toronto Area event—a one-night tasting experience celebrating the creativity and talent of women in foodservice.
Join us on Monday, March 9 at 5:00 p.m. in the Conference Centre Ballroom at The International Centre for an unforgettable evening featuring 15 tasting stations led by some of Canada’s most respected women chefs and restaurateurs. This special event brings together top chefs, trailblazing bartenders, and rising talent for a night of bold flavors, mentorship, and leadership.
Modernizing the Guest Experience: Digital Menu Boards for Today’s Restaurant Operator
We invite you to join us for our upcoming webinar, presented in partnership with Global Payments on Wednesday, January 28th.
With margins under pressure and teams stretched, many operators are making daily decisions without the chance to step back and reassess the tools supporting their business.
This webinar takes an in-depth look at how digital menu boards are being used in real restaurant settings to improve clarity at the point of order, support upselling, and reduce operational friction. Designed for both single- and multi-unit operators, the session focuses on where digital menu boards are delivering value today and how they can fit naturally into a modern guest experience — without adding unnecessary complexity.
Manitoba Business Security Rebate Program: Apply for $2,500 per restaurant location
The Manitoba Security Rebate Program is now open and is accepting and processing applications. The Government has reached out to us to encourage our members to submit claims for up to $2,500 per restaurant location. A total of $10 million is available, with funding distributed on a first-come, first-served basis.
FEDERAL UPDATE
From Matt Triemstra | Vice-President, Federal Affairs
House of Commons Resumes
The House of Commons resumes today after a 6-week holiday break. The Prime Minister has been busy—his first official visit to China, a speech at the World Economic Forum and a cabinet retreat in Québec City. Towards the end of the week, Conservatives will gather in Calgary for their bi-annual convention, which will include debate on policy (including the party’s stance on ending the Temporary Foreign Worker Program) and a vote on Pierre Poilievre’s continued leadership. Against this backdrop, there have also been news articles about the volume of restaurant closures predicted this year and reactions by politicians on social media. Your federal government relations team in Ottawa will be busy in the weeks to come as we continue to meet with MPs to discuss the challenges faced by our industry and the support we need from government.
CUSMA Review
We have been working hard to advocate for our industry amid Canada’s preparations for the CUSMA Review. As part of this work, we met on January 19 with Martin Moen, Associate Assistant Deputy Minister, Trade Policy and Negotiations at Global Affairs. During the meeting, Martin and Kelly discussed the importance of maintaining open access to the U.S. market and advocating for a reliable trading environment. Restaurants Canada also raised the significant and harmful impact of retaliatory tariffs and the decision to exclude foodservice from automatic relief. As the federal government’s work towards negotiations continues, Restaurants Canada will serve as a meaningful partner to advocate for Canada’s interests.
Clearance for the Children’s Food and Beverage Advertising Code
Restaurants Canada is a signatory to the Code and Guide for the Restriction of Food and Beverage Product Advertising to Children. Recent revisions were made to strengthen the language and clarify the mandatory application of the Code to all advertisers and all media, with no opt-out mechanism. You can find the updated material here.
SUSTAINABILITY UPDATE
From Jillian Rodak | Vice-President, Sustainability
Greenwashing Amendments: Increased Risk for Businesses?
As we wait for the greenwashing amendments to Bill C-59 to be finalized, some experts suggest 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 Feb. 5 at 3pm EST to hear from KPMG Law and learn more. Email jrodak@restaurantscanada.org for the meeting link.
Toronto Single-Use and Takeaway Item bylaw
The staff report for Toronto’s Single-Use and Takeaway Item Strategy, which was intended to be presented to city council in Q1 this year, has been pushed back to Q2. This strategy includes expanding the current single use bylaw to include accepting guests’ reusable food containers and cups, requiring reusable dishware for dine-in operations, and adding large venues to the bylaw. We are meeting with the city to understand more about this delay and will share updates as we have them.
EPR Update: Circular Materials
Circular Materials has introduced a new membership model that opens voting rights to any obligated producer. This means any producer signing a Producer Services Agreement with Circular Materials can now apply for membership and participate in decisions on bylaws and Board composition.
2026–2029 Federal Sustainable Development Strategy (draft)
Environment and Climate Change Canada (ECCC) is consulting on the draft 2026–2029 Federal Sustainable Development Strategy, which outlines 17 government-wide environmental goals. A key target is reducing solid, non-hazardous waste sent to disposal by 30% by 2030. ECCC plans to prioritize reuse, repair, and recycling; advance innovation in waste reduction; and strengthen secondary markets for reclaimed and recycled materials.
Click here to register for a consultation webinar. Comments are due to ECCC by May 12, 2026 at SDO-BDD@ec.gc.ca.
Prohibition of Certain Toxic Substances
The federal government is replacing the 2012 toxic substances regulation with the forthcoming Prohibition of Certain Toxic Substances Regulations, 2025, expected to take effect on June 30, 2026. The update adds controls on two additional flame-retardant substances and introduces stricter limits on several PFAS compounds—materials historically used in packaging and non-stick cookware. Most permanent exemptions will be removed, with remaining allowances subject to sunset dates. RC will continue to monitor this new regulation for potential impacts to the foodservice sector.
Reusable Packaging Systems
Circulr and Reposit are hosting a webinar on February 4 from 12–12:45 pm, Expanding Collaborative Reuse Systems: Grocery Food Packaging Phase, showcasing reusable packaging initiatives underway in Ottawa.
QUEBEC UPDATE
From Marie-Pier Richard | Vice-President, Quebec
English follows
Une période plutôt instable politiquement au Québec, le Premier ministre François Legault a annoncé son départ de la politique québécoise au terne d’une course à la chefferie qui permettra d’élire un nouveau chef de la Coalition Avenir Québec et de surcroit, un nouveau premier ministre pour les prochains mois. Le nouveau chef sera connu le 12 avril prochain et plusieurs ministres ont déjà annoncé leurs couleurs quant à la succession de François Legault. Par le fait même, c’est aussi le moment pour d’important membres de l’équipe du Premier Ministre d’annoncer leurs intentions de ne pas briguer les suffrages lors de l’élection de l’automne, et c’est le cas notamment des ministres Geneviève Guilbault et Sonia Lebel.
Sur le dossier des travailleurs étrangers temporaires, veuillez noter que le gouvernement a annoncé un prolongement du moratoire sur les postes à bas salaires dans les régions de Montréal et de Laval. Vous pouvez consulter tous les détails de cette annonce ci-bas.
Refus de traiter les demandes d’EIMT pour les postes à bas salaire dans les RMR ayant un taux de chômage de 6 % ou plus
Les données sur le taux de chômage par RMR (non désaisonnalisées) sont utilisées dans le cadre d’une mesure mise en place en septembre 2024 pour le traitement des demandes d’EIMT du Programme des TET.
Le 9 janvier 2026, le tableau : Taux de chômage selon la RMR et la période a été mis à jour sur le site internet du Programme des TET.
Moratoire pour les postes à bas salaire à Montréal et à Laval
Cette mesure demandée par le gouvernement du Québec dans les régions économiques de Montréal et de Laval a été prolongée jusqu’au 31 décembre 2026.
Le moratoire s’applique aux demandes d’EIMT, y compris celles admissibles au traitement simplifié, pour les postes dont :
- le salaire offert est inférieur au seuil salarial au Québec, actuellement de 34,62$/h; et
- le lieu de travail se situe dans les régions économiques de Montréal (l’île de Montréal) ou de Laval.
À la suite de la récente mise à jour des RMR visées par le refus de traiter, publiée le 9 janvier 2026, le taux de chômage de la RMR de Montréal est descendu sous la barre des 6 %. Par conséquent, à partir de cette date, ce sont désormais les exigences et les exemptions du moratoire demandé par le gouvernement du Québec qui détermineront si la demande d’EIMT sera traitée.
Il est important de préciser que les demandes visées par cette mesure ne seront pas traitées et les frais liés à ces demandes ne seront pas perçus (s’il y a lieu).
À titre de rappel, les demandes d’EIMT au Québec doivent être déposées en même temps à Service Canada et au ministère de l’Immigration, la Francisation et de l’Intégration (MIFI).
Des renseignements supplémentaires concernant les demandes reçues dans les régions économiques de Montréal et de Laval sont aussi disponibles sur le site du gouvernement du Québec.
Quebec is currently experiencing a rather unstable political period. Premier François Legault has announced his departure from Quebec politics once the Coalition Avenir Québec has elected a new leader and, consequently, a new premier for the coming months. The new leader will be known on April 12, and several ministers have already declared their intentions to run. At the same time, this is also a moment for several key members of the Premier’s team to announce that they will not seek re-election in the fall election, notably Ministers Geneviève Guilbault and Sonia Lebel.
Temporary Foreign Workers File
With respect to temporary foreign workers, please note that the government has announced an extension of the moratorium on low-wage positions in the Montreal and Laval regions. You will find all the details of this announcement below.
Refusal to Process LMIA Applications for Low-Wage Positions in CMAs with an Unemployment Rate of 6% or Higher
Unadjusted unemployment rate data by Census Metropolitan Area (CMA) are used as part of a measure implemented in September 2024 for the processing of Labour Market Impact Assessment (LMIA) applications under the Temporary Foreign Worker (TFW) Program.
On January 9, 2026, the “Unemployment Rate by CMA and Period” table was updated on the TFW Program website.
Moratorium on Low-Wage Positions in Montreal and Laval
This measure, requested by the Government of Quebec for the economic regions of Montreal and Laval, has been extended until December 31, 2026.
The moratorium applies to LMIA applications, including those eligible for simplified processing, for positions where:
- The wage offered is below the wage threshold in Quebec, currently $34.62/hour.
- The work location is in the economic regions of Montreal (the Island of Montreal) or Laval.
Following the recent update to the CMAs subject to the refusal-to-process measure, published on January 9, 2026, the unemployment rate in the Montreal CMA fell below the 6% threshold. As a result, as of that date, it is now the requirements and exemptions of the moratorium requested by the Government of Quebec that determine whether an LMIA application will be processed.
It is important to note that applications affected by this measure will not be processed, and the fees associated with these applications will not be collected, where applicable.
As a reminder, LMIA applications in Quebec must be submitted simultaneously to Service Canada and to the Ministry of Immigration, Francization and Integration (MIFI).
Additional information regarding applications received in the economic regions of Montreal and Laval is also available on the Government of Quebec website.
ATLANTIC CANADA UPDATE
From Janick Cormier | Vice-President, Atlantic Canada
Work has been underway on pre-budget submissions for New Brunswick and Newfoundland and Labrador, and we have had significant media engagement about the state of the industry.
PEI
Restaurants Canada met with Finance Minister Jill Burridge and PEI Liquor Control Commission CEO Dan MacDonald to discuss the modernization of the Liquor Control Act. The meeting was very productive. The Minister signalled that our industry should see positive changes and that she is keen to remove roadblocks where possible. The Minister clearly understands the challenges facing the foodservice industry and there is a willingness to work with us given the importance of the sector to the provincial economy.
Our thanks to Kent Scales and Steve Murphy for joining this important conversation.
CENTRAL CANADA UPDATE
From Kris Barnier | Vice-President, Central Canada and the North
Ontario: Alcohol Pricing and LCBO Modernization
The Government of Ontario is expected to bring forward a new pricing model for alcohol this April, which will likely impact tax and LCBO markups on alcohol, including for licensees. We remain very engaged with the Government of Ontario, LCBO, and other stakeholders advocating that the new model reduce pricing for licensees.
In sync with the new pricing model, the LCBO is moving forward with its modernization plans. This will include transitioning to a new online ordering platform. The LCBO will share its plans and transition strategy with licensees in the coming weeks, including training and information sessions and its plans to ensure restaurants and bars can continue to place, pick up, and/or receive orders as LCBO migrates to its new platform. We will share updates with you as they become available and will remain engaged with LCBO throughout the process.
Ontario: Red Tape – Calorie Counts
The requirement for restaurants with more than 20 locations to post calorie counts on menus and menu boards is a uniquely Ontario policy put in place by the previous government. At the time, the policy was intended to help lower obesity rates. As evidence does not suggest the policy has had a positive impact on health outcomes, we have asked the Government to repeal the legislation or at least amend the legislation so that businesses can remain in compliance by simply making calorie counts available online. If successful, this initiative will help Ontario restaurants save money on printing, staff, and other costs.
Ontario: Pre-Budget Submission
We recently participated in a Pre-Budget consultation with Finance Minister Peter Bethlenfalvy, highlighting our industry’s positive impact on jobs, consumers, and the broader economy. We spoke about our industry’s most pressing needs, including:
- More competitive alcohol pricing for licensees
- PST relief on restaurant 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
Manitoba: Business Security Rebate Program Open – Apply today for $2,500 per Restaurant Location
The Manitoba Security Rebate Program is now open and is accepting and processing applications. The Government has reached out to us to encourage our members to submit claims for up to $2,500 per restaurant location. This means that owners of multiple restaurant locations can apply for $2,500 for each location, i.e. a business owner with eight locations could receive up to $20,000.
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
On the heels of the success with last year’s Manitoba Budget in delivering the Business Security Rebate outlined above, 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
WESTERN CANADA UPDATE
From Cheryl Maitland Muir | Vice-President, Western Canada
Alberta Ad Valorem Wine Markup Press Conference
Restaurants Canada and our Ad Valorem Wine Markup association coalition hosted a very successful press conference in Calgary on January 14th highlighting the negative impact the new ad valorem liquor markups are having on Alberta consumers, restaurants, Canadian wine producers and small businesses. We once again asked the Alberta government to replace the unfair wine markup with an across-the-board liquor flat tax instead.
The coalition, which is comprised of Restaurants Canada, the Alberta Hospitality Association, the Alberta Liquor Store Association, the Import Vintners and Spirits Association, along with both Wines BC and Wine Growers Canada, demonstrated the significant cost increases on the most popular wines sold in Alberta and their negative impacts on the hospitality and liquor retail industry. The press conference resulted in several positive media stories on the issue.
The day after the press conference, Restaurants Canada met with senior members of the Premier’s Office to discuss the issue. We believe they understood our concerns and recommendations, and they promised to discuss the issue with Minister of Service Alberta and Red Tape Reduction, Dale Nally. We have also spoken with the Small Business Parliamentary Secretary MLA Tany Yao who continues to be a champion for our position within Caucus. We are cautiously optimistic the Ad Valorem wine tax will be rescinded and will be continuing these conversations ahead of the 2026 Budget, expected in late February.
With gratitude,
Kelly Higginson
