Restaurants Canada encouraged by federal government’s announcement of new food affordability measures

Restaurants Canada is encouraged by today’s announcement by the federal government of an enhanced GST credit to deal with food affordability, and new investments in Canada’s food production and supply chain infrastructure. This announcement is a move in the right direction in taking action 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.

Millions of Canadians rely on restaurants daily for some of their meals, but restaurants are also one of the first discretionary spending categories that Canadians cut from their budgets when they are struggling. In a 2025 survey, 75% of Canadians told us they are reducing their restaurant visits due to cost-of-living increases. As a result, 41% of restaurants are operating at a loss or just breaking even, up from 12% in 2019.

The foodservice industry is the fourth-largest private sector employer in the country, with nearly 1.2 million employees, including 500,000 youth. Addressing food affordability helps to strengthen restaurants’ ability to hire and train the next generation of workers and support the prosperity of every community across the country.

While the GST credit increase will help the hardest-hit Canadians afford daily essentials, including meals purchased from restaurants, we will continue to work with the government on broader affordability measures, including exempting all food from GST, as it did during the 2025 GST holiday.

— Kelly Higginson, President and CEO, Restaurants Canada

Media Contact:

Milena Stanoeva, Restaurants Canada | media@restaurantscanada.org | 647-921-1758

About Restaurants Canada

Restaurants Canada is a national, not-for-profit association advancing Canada’s diverse and dynamic foodservice industry. Restaurants are a $124 billion industry employing nearly 1.2 million Canadians and the number one source of first-time jobs in Canada. Visit restaurantscanada.org for more information.