Inflation has driven up the costs of everything in a restaurant operation, making it nearly impossible to recover from pandemic debt and run a profitable food service establishment. Governments at all levels continue to raise taxes and fees and increase red tape. At Restaurants Canada we are advocating for governments to do more than just not increase taxes and fees, but to lower the costs to do business and help operators continue to serve our communities.
Restaurants Canada advocates for cost relief because it saves restaurants. More than half of restaurants in Canada are not making a profit and bankruptcies are at historic highs. The industry is challenged right now but governments, at all levels, can help. The government relations professionals at Restaurants Canada are advocating for multiple cost cutting measures to protect restaurants, our economic impact, and community gathering places.
The restaurant industry is labour intensive and the fourth largest private sector employer in Canada. A lowering of payroll taxes, like EI and CPP will have a disproportionately positive impact on restaurants than other industries. The federal government addressed premiums in 2013 as a way to help small and medium sized business. Restaurants Canada is pushing the federal government Reducing premiums in 2025 makes even more sense today.
Restaurants Canada’s long-standing lobby to reduce the costs of selling alcohol has had many successes thanks to our biannual Raise the Bar report comparing provincial liquor regulations. This year Raise the Bar is being revamped and elevated for more impact. We are advocating for greater discounts and encouraging more provinces to move to wholesale pricing for our industry. Given the challenges of the industry, increasing discounts is an easy way for provincial governments to help.
Inflation and the cost of production are causing significant upward pressure on the price for dairy and poultry. Restaurants Canada is running campaigns, lobbying and pressuring the government appointed boards responsible for setting the price of dairy and poultry. Given rising food costs, this initiative has been given a high priority.
