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Restaurants Canada

With the federal election wrapping up, Restaurants Canada is gearing up to launch a bold new advocacy campaign.

28 avril 2025 Share on your social channels

With the federal election wrapping up, Restaurants Canada is gearing up to launch a bold advocacy strategy to drive real impact for the foodservice industry. In the coming weeks, we’ll be actively engaging with the newly elected Government of Canada to reinforce the vital role our sector plays in Canada’s social and economic fabric and share our priorities.

As I’ve said before — and will say again in Ottawa — the foodservice industry is a powerhouse: the fourth-largest private sector employer in the country, serving 23 million Canadians daily in every corner of the nation, and contributing a staggering $28 billion in taxes. This industry isn’t just important — it’s essential to the health, vibrancy, and resilience of the communities we serve. 

Our engagement strategy will prioritize the MPs for the top 50 foodservice ridings, communicating the impact our industry has on their communities. For example, the riding of Vancouver Centre sees almost $1.5 billion in foodservice sales, with over 18,000 employees working in over 1000 establishments. In Calgary Centre, restaurant sales reach $1 billion, with almost 1000 foodservice operations employing almost 12,000 Calgarians.

Our industry has impact across the country and that will be the message to our newly elected officials as we lay out or priorities that will contribute to our mission of creating vibrant and thriving foodservice communities across Canada.

Our key issues remain—removing GST on all food, addressing acute labour shortages, and introducing business-friendly policies such as a reduction in payroll taxes. Please see Executive Vice-President of Government Relations and Public Affairs Richard Alexander’s summary below of our upcoming campaign to remove GST on all food and join us for our upcoming virtual townhalls for more federal and regional details.

Join our Q2 member-only Virtual Townhalls

The next edition of our Virtual Townhalls are just days away! Join us for an opportunity to hear the latest research and economic data on the restaurant sector, find out our advocacy priorities in your region, share concerns and ask questions!  This is your opportunity to engage.

We’ve scheduled the Town Halls by region as follows:

A recording of the session will be shared with all registrants. We look forward to connecting with you!

Coming soon: MENU Unplugged podcast

If you attended the RC Show earlier this month, you might have caught our mobile recording studio in the middle of the Restaurants Canada booth! We’re excited to bring you our new MENU Unplugged podcast, premiering June 2nd!  Keep an eye out for more news in the coming weeks.

GOVERNMENT RELATIONS & PUBLIC AFFAIRS UPDATE

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

The Fight for Food Tax Fairness: Restaurants Canada’s Big Ask of the New Government 

For over three decades, the restaurant industry has carried an unfair burden—and now, with a new federal government in place, we have a once-in-a-generation opportunity to fix it. 

Since 1991, restaurant meals have been subject to GST. The result? A 7.3% drop in restaurant sales overnight, according to a report by Ernst & Young, a hit from which we’ve never fully recovered. While grocery store food remained largely tax-free, restaurants were penalized. And while the U.S. restaurant sector grew, ours stagnated. 

It’s time to ask: why is food taxed based on where it’s prepared? Whether a working parent buys groceries or grabs a quick takeout meal, it’s still food on the table. It’s still essential. 

Consider this: a high-income earner can stock up on $200 of premium steaks tax-free, but a single mom grabbing a $30 meal after a long shift pays extra. That is not good policy. 

Why Now? Because the Momentum is Real. 

When Ottawa introduced a GST/HST holiday, Canadians got a taste of what food tax fairness could look like. The results were immediate: 

  • 74% of Canadians want the holiday extended. 
  • 84% say taxing food is just plain wrong. 
  • Our industry added 36,000 jobs. 
  • Restaurant sales jumped 7.5%—generating approximately $1.5 billion in additional spending. 

And with consumer confidence at pandemic-era lows due to the cost of living crisis caused by inflation and further impacted by U.S. tariffs, affordability is the #1 issue on Canadians’ minds. The federal government needs tools to fight economic headwinds. Removing tax on food is a tool that works. 

Launching Soon: One of Our Biggest Campaigns Yet 

We’re gearing up to launch Food Tax Fairness for Canadians, a national campaign targeting MPs and the public with a clear message: taxing food, especially now, is wrong. 

We’ve done it before—defeating PST on restaurant meals in B.C. and Saskatchewan—and we can do it again. 

There are 100,000 restaurant operators across Canada. Imagine if we all raised our voices together. The government wouldn’t just hear us—they’d have to listen. 

Watch for our campaign. Share it. Speak out. Let’s win this fight together. Fighting for Fair Music Licensing Fees 

In other advocacy news, we’re taking a stand against SOCAN’s proposed 20% increase to music licensing fees under Tariff 18, a move that could cost our industry over $500,000 a year. Cost relief is a priority for Restaurants Canada, and this will be another hit to our operators bottom line.

We’ve pushed back before, successfully freezing rates and securing COVID-era discounts. Now, we’re joining forces with the Hotel Association of Canada to oppose this new hike. 

The case is before the Copyright Board and will wrap up by May 2025. We’ll be there until the decision in 2026, and we’ll keep fighting to ensure fairness. 

Stay tuned. Stay vocal. Together, we’re a force. 

SUSTAINABILITY UPDATE

From Jillian Rodak | Vice President, Sustainability

Circular Materials National Board of Directors – Call for Applications Extended

Circular Materials, the national producer responsibility organization for packaging and paper, is seeking to appoint new Directors to its Board and has extended the application deadline by a month to May 31, 2025.

This is an opportunity for producers to play a direct role in shaping extended producer responsibility (EPR) systems across Canada. Interested members can access further information on the opportunity and application process here.

May Sustainability Committee Meeting

Later this week, the Sustainability Committee will meet and debrief on the federal election and discuss implications for key sustainability issues including single-use items and packaging. Additionally, Restaurants Canada is developing a post-election sustainability strategy to guide engagement with the new government and ensure member concerns are front and centre in policy conversations at all levels of government.

FEDERAL UPDATE

From Maximilien Roy | Vice-President, Federal & Québec

Today is election day. We have been tracking promises from the major parties and have analyzed their platforms for any recommendations that would impact foodservice businesses. You can find an overview of how the platforms impact our industry on our 2025 elections page here.  

If you need information on where and how to vote, please visit elections.ca.

Once the election results are known, we will move quickly to share more details with you on what you can expect to see from the new government, and we will reach out to key Ministers to ensure your priorities are heard.

ATLANTIC UPDATE

From Janick Cormier | Vice-President, Atlantic Canada

Atlantic Canada and Interprovincial Trade 

Atlantic Premiers have been working hard at reducing interprovincial trade barriers. Premier Houston was the first out of the gate last March proposing legislation that would remove barriers to provinces who adopted similar legislation. 

On April 11th, Prince Edward Island joined Nova Scotia in introducing reciprocal legislation aiming at creating new opportunities for local businesses and professionals and building a stronger interconnected economy.  

On the 24th, Premier Holt and Premier Furey signed a memorandum of understanding to facilitate trade between New Brunswick and Newfoundland and Labrador. Premier Holt had signed a similar agreement with Ontario Premier Doug Ford the week prior, signalling an intent on moving quickly on the matter. 

Restaurants Canada has been advocating for the removal of interprovincial trade barriers for years now. We’re very pleased to see major progress on this front, and I’m particularly proud that Atlantic Canada is leading the way! 

New Brunswick

Labour shortages and immigration continue to be the number one issue in Atlantic Canada, but in New Brunswick, since we are shut out of both the Provincial Nominee Program and the Atlantic Immigration Program, the situation will be quite dire if no change is made.  

I met with the conservative opposition MLAs on April 14th on this issue. The caucus seemed to understand the situation and support our ask to allow the workers who are already here to stay since they are trained, housed and building a life in Canada. 

I attended a meeting of McDonald’s franchisees of Atlantic Canada, in Moncton on April 23rd. The conversation was focussed on immigration and how we can work together to add pressure on governments to reverse their decisions to cut allotments and to close the door to labour by not allowing our industry to access different streams of economic migrants. 

I headed up to Fredericton on April 24th to meet with Small Business Minister Luke Randall, Tourism Minister Isabelle Thériault, as well as the Tourism Association of New Brunswick’s new CEO Ginette Doiron on this specific issue as well as increasing the alcohol discounts for licensees in the province. Both Ministers understood the situation of the restaurant industry and that our industry is at risk due to our inability to access much needed labour.  

The immigration issue is a big one for us in Atlantic Canada due to our small and aging population. I will continue to push on this issue and work towards a solution. I invite members who are concerned about this to reach out to me to see how we can work together to build the pressure on governments.  

Nova Scotia 

I continue to work with RANS on a wage subsidy to help employers bear the costs of the sizable increase in minimum wage. We have meetings scheduled in mid-May with Minister Colton LeBlanc (Economic Growth) and his team and look forward to that discussion. 

Restaurants Canada will also be asking for training funding to create a Pathways to Careers in Foodservice Program in Nova Scotia, similar to what we had done in Ontario. This program, if we receive funding, would represent a valuable opportunity to address the pressing workforce challenges in the foodservice industry by providing us with much-needed labour. 

Our sector is experiencing an unprecedented number of job vacancies, with over 1,150 job vacancies in Nova Scotia at the end of 2024. We are already feeling the pressure from the reduced immigration allotments to provinces. Canada-wide, the industry forecasts to create 200,000 new jobs by 2030, making the shortage of workers a matter that urgently needs to be addressed. 

Based on the success of year one in Ontario, we see great value in expanding the program to support restaurants in Nova Scotia. The dual focus on bridging the gap between employers and the various agencies, organizations, and programs that support job seekers to create sustainable talent pipelines, as well as the provision of hiring grants to allow restaurants to reinvest in their operations is critical for the health of the foodservice industry. 

We thank the members who sent in letters of support for this proposal and hope to have good news to share on this front soon.  

Newfoundland and Labrador 

We are thankful that the provincial government doubled the licensee discount and put money aside for a Loan Guarantee Program for restaurants. We know that more needs to be done to help our members in the province.  

I’ve heard it loud and clear that patio fees in St John’s are exorbitant and that the issue needs to be addressed.  

I’ve raised it with Councillor Greg Noseworthy and plan on continuing to advocate for a reduction in fees in the days ahead. I’m going to be asking to meet with Mayor Breen as well as Councillor Ophelia who is the lead for all things Downtown St. John’s. According to CFIB, our members in St John’s are paying 5x more for their patios than our members in Downtown Toronto. This is simply ridiculous, and we need Council to move on this quickly as patio season rapidly approaches. 

CENTRAL CANADA UPDATE

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

Manitoba

Manitoba Announces More Workers Will Be Able to Stay in Manitoba

The Manitoba government has announced a two-year Manitoba-specific extension to facilitate work permits for prospective Manitoba Provincial Nominee Program (MPNP) candidates. The temporary public policy will apply to individuals currently employed in Manitoba, who are intending to establish themselves as a permanent resident in Manitoba and whose work permit will expire in 2025 or expired in 2024. Persons who meet the criteria may apply for a support letter from the province by completing an online submission form. Restaurants Canada has confirmed our industry is eligible to participate. For more information, click here.

$10M Business Security Rebate Program 

The Kinew Government is allocated $10M for a new Business Security Rebate program in its recent budget. Restaurants Canada and MRFA are pulling together a follow up submission that outlines our advice and requests for the program design, including eligible expenses, rebate amounts/caps, eligible businesses, etc. 

Restaurants Canada Proudly Welcomes Manitoba Students to RC Show

MRFA CEO Shaun Jeffrey and I were excited to greet students from Winnipeg’s Technical Vocational High School Culinary Arts Program at the RC Show. These exceptionally talented students had opportunity to speak with industry experts, engage with exhibitors, and expand their knowledge. Restaurants Canada was pleased to offer complimentary passes to the students. We thank MRFA, the Canadian Automobile Association, Centennial College, George Brown College, and the Ontario Restaurant Motel and Hotel Association for working with us to help the students plan an incredible and memorable trip.

Reminder – Manitoba Tax Deferrals

Due to the impacts of U.S. tariffs imposed on Canadian exports all businesses are eligible for an interest and penalty-free payment deferral of retail sales tax (RST) return remittances until June 20, 2025. The deferral is for the February, March and April 2025 return periods. The deferral is optional and for the tax payment only. Returns must continue to be filed by the standard due dates. See here for more information.

All businesses are also eligible for an interest and penalty-free payment deferral of Health and Post Education Tax Levy (also known as HE Levy) return remittances until June 15, 2025. The deferral is for the February, March and April 2025 monthly return periods. The deferral is optional and for the tax payment only. Returns must continue to be filed by the standard due dates. Any amounts owing on filing of a 2024 HE Levy Annual Report are not included in the deferral. Interest and collection efforts will continue to apply on all outstanding tax debts established prior to the February return. You can find more information here.

Buy Manitoba

The Government of Manitoba has created a resource for Manitobans who are looking to ‘buy local.’ To see a list of local Manitoban businesses and services, click here.

Ontario

Increasing the LCBO Discount from 10% to 15%

We do not yet have an implementation date, but the Premier and Finance Minister have reaffirmed that the new discount will be implemented this Spring. We will share updates as they become available.

Speech from the Throne

With the Legislature now back in the Session, the Ontario government outlined its planned agenda, including efforts to protect Ontario in response to US tariffs, crack down on crime, address housing supply and challenges of affordability.

Premier Ford Leads Effort to Tear Down Interprovincial Trade Barriers

Ontario has tabled legislation that aims to eliminate red tape and to remove barriers to trade that impede the efficient, timely, and cost-effective movement of goods and labour. Please see here for more details.

WESTERN UPDATE

From Mark von Schellwitz | Vice-President, Western Canada

BC Conservative Party Caucus Presentation & Meeting

On April 16th Restaurants Canada met with the BC Conservative Caucus at the Legislature in Victoria to provide an update on the state of BC’s foodservice and hospitality industry and the federal and provincial issues impacting the industry and our policy priorities. Following the presentation several MLAs had questions resulting in a good discussion on industry challenges and policy priorities including crime and safety, rising food and labour costs, gratuities, red tape, labour shortages, affordability, taxes, and tariff threat impacts. Restaurants Canada appreciated the MLAs taking time out of their busy schedules to learn more about BC’s foodservice industry and engage on industry challenges and policy solutions.

Saskatchewan Food Safety Regulation Amendment Consultation

Restaurants Canada, in consultation with the Retail Council of Canada and member quick service brands, provided a submission on Saskatchewan’s proposed Food Safety Regulation amendments which included our requested safe ambient food storage amendments as well as other food safety regulatory amendments impacting restaurants such as requiring all food handling staff to have food safety training and certification. Restaurants Canada and members also completed the public consultation engagement survey. Restaurants Canada is urging the Saskatchewan Government to quickly finalize, approve, and implement the food safety regulation amendments to more closely align Saskatchewan’s food safety regulations with other provinces with respect to storing foods safely at ambient temperatures for a limited amount of time.

Get ready and prepare to engage—our GST Campaign is launching soon. Your participation is essential to driving impact. Remember, with 100,000 restaurant operators across Canada, a united voice can’t be ignored. Let’s make them listen.

We are stronger together!

Best,

Kelly Higginson