Alberta and BC Restaurants see boost in dining and traffic in first month of GST holiday

Restaurants in Alberta and British Columbia have seen a boost in dining and traffic over the past month coinciding with the GST and HST holiday, according to new data by Restaurants Canada and OpenTable.

From December 14 to 27, data from OpenTable, a global leader in restaurant tech, shows an 18 per cent increase nationally in dining compared to the corresponding period in 2023.* Alberta saw a 17 per cent increase year-over-year, while British Columbia saw an increase of 12 per cent year-over-year.**

This aligns with new data from Restaurants Canada’s REACT Survey, which noted a 7-point increase between December 2024 (92.1) and December 2023 (85.1) to its Consumer Dining Index. The Consumer Dining Index is calculated as a weighted average of the number of times Canadians purchased a meal or snack from a restaurant in the past month, indexed to July 2023. The December 2024 index also captures the two weeks before the tax holiday.

“Seeing Albertans and British Columbians embrace the tax relief and treat themselves to a meal out is really encouraging, especially as we navigate a climate of economic uncertainty. The GST holiday discount is not as big in our provinces as it is in HST provinces making these sales increases even more impressive,” said Mark von Schellwitz, Vice President for Western Canada at Restaurants Canada. “More sales also mean more hours for the more than 335,000 foodservice workers in our two provinces, so this is a win-win-win.”

2024 was an incredibly difficult year for restaurants, between rising operating costs (total food costs have increased by 25 per cent, insurance by 24 per cent, utilities by 20 per cent and labour costs by 18 per cent) and lower consumer demand. In fact, 53 per cent of restaurants are operating at a loss or barely breaking even. Restaurants Canada has been calling on governments to prioritize affordability measures, and the GST and HST holiday has done just that.

“Alberta has no provincial sales tax providing Albertans with more discretionary income to spend at restaurants and BC recognizes the need for food tax fairness by exempting restaurant meals from provincial sales tax which also reduces the cost of eating out for British Columbians.

We urge the federal government to make the GST and HST tax break on prepared food permanent,” concluded von Schellwitz.

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 $120 billion industry employing nearly 1.2 million Canadians and are the number one source of first-time jobs in Canada.

Methodology:

*OpenTable looked at seated diners from online reservations for all restaurants active on the OpenTable platform in Canada, Alberta and British Columbia from December 14 – December 27, 2024, compared to the corresponding period in 2023.