2025 Ontario Pre-Budget Submission

Foodservice Businesses Are in Crisis and Urgently Need Help

• Pre-pandemic, 12% of Canadian restaurant companies were not profitable—today its 53%
• Ontario real per capita spending (2024 dollars) in restaurants is down from $2,592 in 2019 to $2,378 (f) for 2024
• Operating costs are up significantly over the past two years: total food cost 24%, total labour cost 18% (Ontario server min wage up 37% since 2022), insurance 24% or more,
  other costs 22%
• Crime is putting restaurant workers, guests, and operators at physical, mental, and financial risk
• Restaurants are still struggling to find workers as many left the industry through COVID, meaning many restaurants can’t run multiple shifts to maximize revenue over fixed expenses
• Consumer behavior is changing—less alcohol consumption in restaurants, greater share of business is take-out/delivery (less profitable), cutting restaurant spending is the top thing Canadians are doing to save money during the affordability crisis

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Ontario Pre-Budget Submission 2025