Restaurants Canada is pleased by today\u2019s commitment from the Ontario government in its Fall Economic Statement that it will put $200 back into the pockets of Ontarians struggling with affordability. This important relief will give Ontarians some breathing room to be able to have an evening out, a coffee or muffin on the way to work, or order in a favourite meal with the kids.<\/p>\n\n\n\n
High inflation is taking a toll on everyone, and the restaurant industry is no exception. A shocking 53% of restaurants are operating at a loss or just breaking even, up from 12% pre-pandemic. Food costs have gone up 25% over the last two years and labour costs have increased by 18%. At the same time, per capita spending (in real dollars) in restaurants is down 9% compared to 2019 as people tighten their discretionary budgets and forego eating out. The initiative to return $200 to eligible Ontarians will not only help people struggling with affordability, but will also help restaurant operators, the 445,000 people we directly employ, and the 102,000 workers we indirectly support. – Kelly Higginson, President and CEO, Restaurants Canada.<\/p>\n\n\n\n
We welcome more affordability measures that specifically target consumers and the foodservices industry. For this reason, we look forward to participating in the government\u2019s upcoming consultation on tax and wholesale pricing on alcohol. In 2022, the Ontario government delivered an estimated $60M per year in relief to restaurants and bars through LCBO wholesale discounts.\u00a0 This comes in addition to other previous announced initiatives like allowing restaurants and bars to include alcohol with take out and delivery and Ontario\u2019s move to stop an estimated 4.6% increase to the beer basic tax and LCBO mark-up rates that had been scheduled for March 1, 2024. Deeping wholesale discounts, and eventually extending discounts to include beer after the expiry of the Master Framework Agreement with the Beer Store represents a significant and meaningful opportunity to the government to efficiently and precisely extend targeted relief to our struggling industry and the customers we proudly serve.\u00a0\u00a0\u00a0<\/p>\n\n\n\n
Restaurants play a vital role in the social and economic landscape of our communities. As the fourth largest private employer in Ontario, they are central to community life\u2014sponsoring youth sports teams and charitable initiatives, offering first job opportunities to young people, and serving as gathering spots for friends, families, and neighbours. With appropriate fiscally responsible relief measures, we can ensure their continued health, allowing them to create jobs, boost our economy, and nourish our communities. – Kris Barnier, Vice-President of Central Canada, Restaurants Canada. <\/p>\n\n\n\n