Restaurants Canada Welcomes Productivity Mega Deduction as major win for restaurant investment

Restaurants Canada welcomes the Productivity Mega Deduction announced by Prime Minister Carney. This is an important measure that will have a significant impact on the restaurant sector’s ability to invest in productivity and growth and directly addresses one of our key recommendations to the federal government.

Restaurants Canada has consistently called on the federal government to make it easier for restaurants to invest in their businesses. In our pre-budget submissions to Finance Canada and the House of Commons Finance Committee, we specifically recommended enhanced accelerated capital cost deductions for investments in equipment, technology and restaurant modernization.

This proposed measure will allow businesses to immediately deduct the full cost of most qualifying capital investments in the year they become available for use, making it easier for restaurants to invest in expansion, equipment, technology and modernization.

With the rising cost of doing business and ongoing economic uncertainty, many restaurants have had to put equipment and building investment plans on hold.  That constrains productivity and growth within restaurants and reduces investment in the Canadian businesses that supply them with equipment, technology, construction and other services.

Restaurants are a $125 billion industry representing 4% of Canada’s GDP. They employ 1.2 million people, contribute $26 billion in taxes and purchase $43 billion in food and beverage products, most of which come from local suppliers.

Measures that support success and growth in our industry ultimately help grow the Canadian economy, produce local jobs and support other industries and hundreds of thousands of related jobs. We look forward to working with the federal government on this measure and others that can unlock the full economic potential of the restaurant sector.

– 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 $125 billion industry employing 1.2 million Canadians and the number one source of first-time jobs in Canada. Visit restaurantscanada.org for more information.