The past several weeks has been a whirlwind of political chaos
Advocacy
The past several weeks has been a whirlwind of political chaos, unlike anything we’ve seen in some time, not to mention developments south of the border. Our team has been actively engaging with all federal parties to ensure our priorities are heard and that Liberal leader candidates recognize the restaurant sector’s importance as they shape their platforms. Given the fast-moving landscape, we’ve created a political timeline to guide our internal advocacy efforts and are sharing it here for your reference as we navigate the months ahead.
Tariff threats
Restaurants Canada has been actively addressing evolving issues and working closely with government officials to ensure the foodservice industry’s concerns are heard. Over the weekend, Canada was thrust into a trade dispute with the U.S., and Restaurants Canada has been diligently engaged in this matter for weeks leading up to President Trump’s deadline. Please find the latest updates on the situation in the links below.
While it’s important for the industry and Restaurants Canada to publicly support Canada-first initiatives, we are addressing the issues the stem from this behind the scenes through ongoing discussions with various levels of government.
Please see our member update from Friday, January 31st here.
Please see our member update from Sunday, February 2nd here.
Please see our statement here.
Immigration cuts threaten the spring tourism and patio season
Operators in rural, remote, and tourism-dependent areas are gearing up for the spring season, but recent immigration cuts, policy changes, and temporary foreign worker (TFW) regulations are dramatically impacting these vital businesses. Restaurants Canada continues to impress upon provincial and federal governments to align immigration policies with workforce needs in tourism and hospitality. In recent weeks, we’ve noted increasing delays in processing PR applications and other disruptions affecting immigration to Canada, which we felt necessary to highlight.
We understand the importance of this issue for your business. Discussions with all levels of government on immigration continue but are increasingly difficult due to shifting public sentiment. Recent Focus Canada research shows 58% of Canadians now believing the country accepts too many immigrants. This is a 14-point increase from 2023 and the largest shift in opinion since 1977. Concerns about immigration levels are growing across all political lines. Over the coming months Restaurants Canada will continue to work on immediate needs while we put a long-term strategy together.
Our immediate request has been as previously highlighted for a matching and training program for underrepresented Canadians, including newcomers and unregulated workers. Nearly 1 million unemployed newcomers with open work permits could fill labour shortages, especially in rural and tourist areas. However, despite federal interest, the proposed program was not announced in the fall economic statement. We continue to address this with the current government. Please know there were extensive lobbying efforts around this proposal on behalf of Restaurants Canada along with significant efforts at the regional level over the last 6 months.
The program would help newcomers transition from urban centers to rural areas, reduce dependence on government support, and provide restaurants with much-needed workers. Labour shortages continue, with 73,000 vacancies in foodservice alone, risking closures and economic setbacks for small businesses. The new immigration policies could shrink Canada’s GDP by $37B annually by 2027, exacerbating the issue.
We need a balanced strategy to address workforce shortages by combining short-term TFW solutions with long-term plans for immigration and youth employment. As Canada’s labour market evolves, the government must adopt forward-thinking policies to drive growth and support communities across the country. The team will continue building our long-term approach and policy proposals engaging all levels of government to tackle this issue in the coming months. See updates on LMIA application – updated unemployment rates below from Vice President Federal and Quebec Affairs Max Roy
Research and Insights: The Quarterly has dropped!
Amid ongoing instability and challenges, we encourage operators to leverage Restaurants Canada’s research and insight tools for informed business decisions and planning. The Q4 review highlights key trends: quick-service and catering experienced growth, while full-service restaurants and bars faced challenges post-summer, with decreased traffic due to lower discretionary spending. This was partially addressed through the federal government’s GST/HST holiday, following extensive lobbying by Restaurants Canada to combat the affordability crisis.
This issue also delves into how issues like immigration, tariffs, rising crime, and shifting consumer behaviors are impacting industry stability, offering insights on navigating these uncertainties. View the full report here.
RC Show Exclusive
Tickets for this year’s RC Show keynote with Chef José Andrés are now available – but hurry! Seats for the exclusive rush seating at Chef Andrés’ fireside chat at RC Show 2025 are limited. This is a closed-room event.
WEBINAR: Save the Date *UPDATED*
Managing the Impact of U.S. Tariffs on Canadian Foodservice – Part Two
Date: Tuesday February 18th
Time: 11:00 AM EST
As the U.S. transitions under a new administration, this webinar will provide an essential follow-up to our discussion on tariffs. Join us as we analyze the latest developments post-Trump inauguration and their implications for the Canadian foodservice industry.
Stay tuned for registration details.
If you haven’t had a chance to see part one, watch it here.
Time to Celebrate – Ontario Skills Development Funding (SDF) leads to opportunities for 516 Ontarians with Restaurant Canada members
Last April, Premier Ford opened our RC Show and announced a $1.4M grant to help offset the costs of onboarding, orientation and training for staff from underrepresented groups. Through the program, 275 Ontario restaurant businesses received grants and 516 people received training, including 449 new trainees and 67 individuals who received training preparing them for promotions with their current employer. 451 of the program participants have completed at least 3 months in their new roles.
Ontario’s SDF program has played an important role in matching incredible Ontarians looking for meaningful and rewarding opportunities with welcoming restaurant operators who have jobs to fill, and who are proud to welcome them.
Out and about
I was pleased to join panellists at the Moneris National Sales Conference on stage to discuss taking a next level approach to redefining the customer experience.
The panel was moderated by Moneris’ President & CEO, James Hicks and included thought leaders Chris Barry, President, Microsoft Canada, Kate Horton, CEO, Ronald McDonald House Charities Canada, and Nitin Khatri, Digital Country Manager, Salesforce.
We are thrilled to welcome Moneris as one of Restaurants Canada’s newest Preferred Partners! Thank you for supporting the foodservice industry and our work and initiatives at Restaurants Canada.
Celebrating Black History Month
This month and every month, I want to recognize the immense contributions of the Black community to the restaurant and foodservice industry. Black professionals in this sector have been instrumental in raising awareness about crucial issues, shaping progress, and pushing boundaries. Their work has been essential in addressing challenges and creating opportunities related to diversity, inclusion, and belonging, the promotion of Black cuisines, and food sovereignty. However, our work is far from over.
Looking ahead, the RC Show is honoured to welcome back the Black Experience Pavillion for its second year. Presented by The Re-Seasoning Coalition, in partnership with Foodpreneur Lab and supported by KraftHeinz, the City of Toronto, and Restaurants Canada, this groundbreaking space is dedicated to shaping the future of the foodservice industry through equity and innovation.
SUSTAINABILITY UPDATE
From Jillian Rodak | Vice President, Sustainability
January Sustainability Committee Meeting
Last week, Restaurants Canada kicked off its first Sustainability Committee Meeting of 2025, discussing our response to the Competition Bureau’s proposed greenwashing guidelines. As this will have implications for businesses when making business or product-related environmental claims, Restaurants Canada will be working closely with members to prepare a submission prior to the February 28, 2025, deadline.
Upcoming Engagement with ECCC
Restaurants Canada will be meeting with Environment and Climate Change Canada (ECCC) in February to discuss upcoming reporting obligations under the Federal Plastics Registry. Despite the latest guidance document, there are still a number of outstanding questions and concerns, as the government has not yet launched a finalized reporting portal or Excel template, and the first phase of reporting is due by September 29, 2025.
We encourage you to reach out to sustainability@restaurantscanada.org with any questions so we can compile a list for ECCC. As further information becomes available, we’ll continue to keep members informed.
FEDERAL UPDATE
From Maximilien Roy | Vice-President, Federal & Québec
Federal: LMIA application – Updated unemployment rates
On January 10 the Canadian Government updated the unemployment rates for various Census Metropolitan Areas (CMAs). Notably, Vancouver, Abbotsford, Winnipeg, Brantford, Kingston, Ottawa-Gatineau, and Trois-Rivières now report unemployment rates under 6%. If you are based in these CMAs and apply for LMIAs between now and April 3rd, the application will be processed.
Conversely, Saint John, Guelph, and Barrie are now reporting unemployment rates above 6%, rendering them ineligible for certain Labour Market Impact Assessment (LMIA) applications until April 3, 2025.
Quebec: Food Policies Renewal
Quebec’s two major food-related policies, the Politique gouvernementale de prévention en santé and the Politique bioalimentaire 2018-2025, are set to expire in 2025. The government may use the renewal of these policies to implement stronger measures aimed at improving the nutritional quality food, such as setting mandatory targets for saturated fats and sugars and introducing a tax on sugary drinks. This could impact menu offerings and product formulations, increasing cost of doing business.
Restaurants Canada is engaged with the Health Minister’s office on this file, to ensure the voice of the foodservice industry is represented during the renewal process.
ATLANTIC UPDATE
From Janick Cormier | Vice-President, Atlantic Canada
Last week, Restaurants Canada sent letter to all four Atlantic Premiers addressing our industry’s concerns regarding the threat of tariffs from the United States. As we enter economic uncertainty, we know that our industry will be hit first as consumers will be watching their discretionary spending. As such, we will continue to advocate for lower costs of alcohol, making the HST holiday permanent, removing interprovincial trade barriers, and more.
New Brunswick
On January 30th, Premier Holt delivered her first State of the province address. Her areas of focus were not a surprise: health, education and infrastructure/housing. She started her speech talking about the possible impacts of a tariff war with the US and how it could impact the economy.
We have been asked to attend a meeting with Immigration NB regarding upcoming changes to the provincial nominee and AIP programs following the large reduction in allocations and upcoming restrictions. We will update members with information received as we expect the new rules will impact our industry.
Nova Scotia
On January 29th, Labour, Skills and Immigration minister Nolan Young announced the largest minimum wage increase ever in Nova Scotia. The rate will increase by $1.30 in total this year, first rising to $15.70 per hour on April 1 and then to $16.50 on October 1. You can find our reaction here.
The minimum wage is updated every year on April 1 based on the consumer price index for the previous year, plus an extra one per cent. The additional increase on October 1 this year responds to concerns about the rising cost of living.
On January 30th, we had an introductory meeting with the Minister Young and discussed how his government could help our industry weather the storm of this increase in minimum wage as well as the tariff threat from the US. We provided him with an overview of the industry, our challenges and our needs. Although no hard commitments were made on our asks, we will keep the lines of communication open and provide his office with more information on the transitional programs that were introduced in Manitoba and Newfoundland and Labrador.
CENTRAL CANADA UPDATE
From Kris Barnier | Vice President, Central Canada and the North
Manitoba Update
I will be in Winnipeg the Week of Feb 27th to meet with provincial government representatives on core member priorities and to be on hand for the MRFA Passion For Fare Gala honouring three iconic Manitoba foodservice leaders:
- Doug Stephen – WOW Hospitality
- Steve Hrousalas – Rae and Jerry’s
- Gord Howard – the Key Steakehouse
US Trade – Shaun Jeffrey of MRFA and I wrote to Premier Kinew and key members of his cabinet to share concerns over what a US trade dispute could mean for the foodservice industry. We have called on the government to be ready to move quickly, and with ample support, should the US take action that harms our industry. We have also called on Manitoba to expedite action on our requests for alcohol pricing relief, training grants, and crime prevention, and for it to push Ottawa to make the GST break permanent.
Government Relations Committee – Last week, I met with a group of Manitoba restaurant leaders. We discussed the impacts of crime, rising operating costs, affordability constraints impacting consumers, workforce sustainability, and the threat of US tariffs. Restaurants Canada will continue to work with MRFA to bring attention to top member priorities and to drive meaningful and timely responses from our elected officials.
Ontario Update
Electricity Price Plans and Energy Efficiency Programs for Restaurants and the Food Service Industry – If you own or manage a restaurant, catering company, or other business that prepares meals outside the home, the Ontario government has many programs to help you manage your electricity use and save money. Click here for a list of available programs and how to apply.
Ontario Election – An Ontario election is scheduled for February 27th. Premier Ford has stated that he needs a mandate from Ontarians to take necessary actions to protect businesses and people from the negative impacts of US led trade measures.
We expect the trade war will dominate the election narrative. Restaurants Canada has written to Premier Ford and key cabinet ministers to ensure they understand the likely impact of tariffs and retaliatory measures on our industry. We have called on them to support our industry in response to any measures that raise our operating costs, disrupt our supply chains, and lead to reductions in consumer spending.
We have shared our key asks with all parties and have specifically urged them to expedite action on alcohol pricing relief, work with Ottawa to make HST relief permanent, and be ready to help our industry as necessary.
WESTERN UPDATE
From Mark von Schellwitz | Vice-President, Western Canada
Alberta Launches Red Tape Awareness Week
On January 27th, Alberta’s Red Tape Reduction Minister Nally launched Red Tape Awareness week by announcing that in the past five years Alberta saved Albertans and businesses $2.9 billion through red tape reduction. In the past year Alberta reached a milestone by cutting red tape across government by 33%.
The follow day the Minister announced the creation of Alberta’s new “Automatic Yes Tool Kit” to further reduce red tape and speed up project timelines by identifying permits that can benefit from faster decision-making processes. Alberta Gaming, Liquor and Cannabis (AGLC) announced it successfully reduced red tape by 51% making it easier and cheaper for liquor, cannabis and gaming industries to do business in Alberta saving business over $89M in cost and time since 2020. Restaurants Canada was quoted in the release thanking AGLC for their ongoing commitment to red tape reduction.
Crime and Safety Policy Progress
Crime and safety has become an increasingly important public policy priority—72% of Restaurants Canada members report an increase in crime or community safety issues, and 45% have been directly impacted by incidents such as vandalism, theft, and property damage according to our most recent Q4 2024 Outlook survey.
We applaud the Saskatchewan government for taking immediate action on their election commitments by introducing the Safer Communities and Neighbourhoods Amendment Act and Safe Public Spaces Act to help reduce crime and make communities safer.
In British Columbia, Restaurants Canada is a founding member of the Save Our Streets (SOS) coalition. The coalition held the Communities Driving Change Forum in Vancouver on January 23rd, which featured panel discussions and presentations by crime and safety experts including a keynote address by former Chief of Staff to the Premier of Alberta, Marshall Smith, as well as Vancouver Mayor Ken Sim, BC Minister of State for Community Safety and Integrated Services Terry Yung, and BC Opposition Leader John Rustad.
Restaurants Canada is here to support the foodservice industry through these challenging times.
Kelly Higginson
