Our team has been working at full capacity to ensure our industry’s voice is heard.
The past few weeks have been intense for Canada and the foodservice sector. Our team has been working at full capacity to ensure our industry’s voice is heard, providing critical feedback to all levels of government while also delivering essential support and resources.
Advocacy
As we entered the week of February 3rd, our team had already spent Sunday analyzing the new tariff announcements and their impacts. This led to urgent discussions with the government and Team Canada on issues such as alcohol being pulled from provincial liquor stores, rising anti-American sentiment, and operators scrambling to adjust menus amid mounting cost concerns. If you missed our tariff statement and member updates, you can find them here.
Emphasizing the strong integration of our industry with the US is a key topic for discussion with government officials.
Throughout the week, we engaged extensively with national media, starting with a live CTV appearance on Monday morning. In Ottawa, EVP of Government Affairs Richard Alexander, VP Max Roy and I met with key government officials to discuss tariff impacts, interprovincial trade and regulatory burdens that are adding to our costs and access to consistent products, and the GST holiday.
Our discussions with Minister Mary Ng’s office and Agriculture Canada officials focused on securing alternative supply options and removing all food from retaliatory tariffs. Executive Vice President, Government Relations and Public Affairs, Richard Alexander goes into more detail below on an upcoming trade mission to Washington with the Canada Chamber of Commerce.
With Minister Valdez, we emphasized the importance of consistent and competitive access to supplies such as food grade packaging and produce, retaliatory tariff impacts, the significance of wage subsidies, and the need to extend the GST holiday, which is proving effective incredibly effective across the country. See our press releases further down under Media Outreach.
Additionally, while in Ottawa I met with the “Tourism Team Canada,” a coalition of CEOs from the hospitality, travel, and tourism sectors. As economic uncertainties persist, collaboration is essential to strengthen our global competitiveness and ensure long-term growth. Our associations remain committed to advocacy, outreach, and positioning Canada as a top destination.
Later in the week I was invited to represent the foodservice sector at the Prime Minister’s Canada-U.S. Economic Summit. I joined leaders from key sectors to discuss Canada’s economic needs and priorities in the face of tariff threats from our largest trading partner, the U.S. I emphasized the need to reduce Canada’s heavy regulatory burdens, remove trade barriers, and increase competitiveness. Key takeaways from the discussion included prioritizing food security, reforming trade regulations, supporting and increasing Canadian manufacturing, and leveraging our energy and critical mineral strengths. With current momentum building, it’s essential that we move quickly to secure Canada’s economic future and protect Canadian communities.
I was also thrilled to be a part of the press conference in Ontario to announce a commitment to increase the 10% LCBO discount to 15% with our Vice-President of Central Kris Barnier Canada, Minister of Finance Peter Bethlenfalvy and Treasury Board President Caroline Mulroney. This major win is a direct result of Restaurants Canada’s lobbying efforts. The PCs also unveiled plans for $3B in payroll tax relief. As a labor-intensive industry, we’ve long argued that cutting payroll taxes helps employers reduce costs and preserve jobs. Please see the update below from Kris Barnier for more details.
To wrap up the week on Thursday, Vice President Max Roy and I met with the Deputy Minister of Labour and Workforce to make a final push on our GST efforts, ongoing tariff discussions, and to address immigration and labour challenges, particularly in remote, rural, and tourism areas. See more details below from Vice President, Federal and Québec, Max Roy.
Media outreach
Late last week we released another impactful press release with the strong job growth data reported by Statistics Canada, which shows the GST/HST holiday is working. The foodservice sector added 34,600 new jobs since November 2024, a 6% increase compared to just 2% for all sectors. Extending the tax holiday boost job security, creates new jobs and bolsters our economic resilience.
Restaurants Canada’s early calculations estimated that the tax holiday would boost restaurant sales nationally by 5% to 7%, adding $1.5 billion over two months. Based on Moneris data, we have seen transactions grow by 7 to 8 percentage points in the first six weeks of the tax holiday, compared to the three weeks before it started. Restaurants Canada is urging the federal government to extend the tax relief until the U.S. tariff dispute is resolved and to pass legislation making prepared food permanently tax-free when Parliament reconvenes. Our advocacy on this issue was covered in an opinion piece in the Globe and Mail.
Support
U.S. Tariffs & Canadian Retaliatory Measures webinar — DATE: February 18, 2025 | 11:00 AM ET.
The 30-day pause on U.S.-led tariffs offers a brief but crucial opportunity for our industry to evaluate supply chains, pricing, and market position. As Canada-U.S. negotiations unfold, how can your business prepare for trade shifts, new tariffs, and potential retaliation?
Join our 2nd webinar with Ann Penner (Wellington Advocacy), Chad Moutray (National Restaurant Association) and Kenn Jordan (KPMG) as they discuss the latest trade updates, their impact on food costs, and key steps to safeguard your business.
We will keep you informed as the tariff situation develops. Visit our FAQ page for resources to support our industry during this uncertain time.
Connection
I was excited about the success of our first round of Regional Townhall events last week. Thank you to everyone who attended and stay tuned for next quarter’s dates. These events provide valuable opportunities for members to hear from Chief Economist and Vice President, Research, Chris Elliott, our federal government relations team, and connect with our regional VPs for updates.
With that it is onto our next engagement and connection initiative!
Introducing dish. Fuel for Women in Food
I’m thrilled to introduce dish., Restaurants Canada’s new content and event series dedicated to championing and elevating women in leadership—and those on their way there. We are committed to fostering connections, sparking conversations, and celebrating the value created by incredible women in foodservice.
The results speak for themselves: women drive innovation, bring fresh perspectives, and play a critical role in shaping workplace culture. Yet, they remain underrepresented in leadership in most industries, including our own. By creating opportunities for women to connect, collaborate and build strong networks, we’re not just advancing individual careers—we’re strengthening the entire industry.
To kick things off, I’d like to personally invite women leaders in the GTA to our first dish. event on Monday, March 10th, from 9-11 a.m. at Mildred’s Temple Kitchen. For our inaugural event, we are keeping things intimate and focused within the Toronto area to ensure a successful launch but know this will grow and evolve into other markets in the coming year.
Join us for a special breakfast as we celebrate International Women’s Day with two inspiring speakers who I know will leave you feeling energized and empowered. It’s an opportunity to step away from the day-to-day, engage with like-minded professionals, and expand your network over an incredible meal, in great company.
Space is limited, so be sure to secure your spot. I look forward to seeing you there and building something truly impactful together—for the betterment of our industry.
Restaurants Canada is also proud to support Rendez-vous gourmet Québec, a private culinary trade show for chefs, food buyers, and professionals, which will be held in Vancouver on February 24 this year. As a long-time partner, we’ve supported several editions of this event in Toronto, Ottawa, and Vancouver. This unique event offers a chance to discover new products and trends from Québec’s top artisans, including cheeses, deli meats, vegan products, maple items, and more. The Vancouver edition will feature over 400 products from 24 vendors representing various regions of Québec. Register here.
MENU Magazine Issue #43 – WINTER 2025 Launches This Week
As the industry faces rising costs, shifting consumer expectations, and ongoing labour shortages, a new priority has emerged: we must come together to reshape and fortify Canada’s food system and supply chain for long-term resilience.
In this issue, we explore the challenges and opportunities ahead. Michèle Boudria, CEO of McDonald’s Canada, shares insights on leadership and mentorship, while new research from The Re-Seasoning Coalition examines the intersection of race and gender in foodservice. We also look at the role of technology and innovation in shaping the future, from AI-driven workforce management to the next evolution of digital ordering. With RC Show approaching, now is the time to connect, collaborate, and lay the groundwork for the industry’s future. Read the latest issue of MENU Magazine – coming to your doorstep or download a digital version here.
GOVERNMENT RELATIONS & PUBLIC AFFAIRS UPDATE
From Richard Alexander | Executive Vice-President, Government Relations & Public Affairs
GST/HST Holiday Extension: A Game-Changer for Restaurants
The GST/HST tax holiday on restaurant meals has been a resounding success, delivering a significant boost to our industry. The early results speak for themselves:
- Higher Spending: Moneris data shows restaurant transaction sizes were, on average, 7.6% higher year-over-year during the tax holiday compared to the three weeks prior.
- More Dining Out: OpenTable data reveals an 18% surge in reservations during the first two weeks of the tax holiday versus the same period in 2023.
- Increased Consumer Demand: The Consumer Dining Index reports a 8% rise in restaurant food purchases.
- Job Creation: StatsCan’s Labour Force Survey confirms a 6% increase in foodservice employment, adding 35,000 new jobs—one in six new jobs created in Canada. This brings employment in our industry to its highest level since the pandemic.
Next Steps: Make the Holiday Permanent
We are pushing for the government to extend—or permanently implement—the tax holiday based on two key arguments:
- Canadians are still in an affordability crisis. Food costs are at their highest levels in decades, and the likelihood of tariffs from a second Trump administration could drive prices even higher. Taxing food in this environment is unacceptable.
- The tax holiday is a proven job creator. It has already added 35,000 jobs to the restaurant industry. Extending it will protect those jobs and create more—helping to mitigate potential employment losses if US tariffs are imposed.
Driving Public and Political Support
- Media Momentum: Our campaign has generated 100+ interviews and 4,300+ editorial mentions across major outlets.
- Targeted Lobbying: We are actively engaging MPs, Cabinet Ministers, the PMO, Liberal leadership candidates, and opposition parties. The response so far has been moderately positive, but we need to push harder.
This is a once-in-a-generation opportunity to eliminate this tax for good. Restaurants Canada is going all in to make it happen.
U.S. Tariffs and Canadian Counter Tariffs: Protecting Food from Trade Wars
Restaurants Canada is joining a high-stakes trade mission to Washington on March 4-6, led by the Canadian Chamber of Commerce. Our agenda includes meetings with:
- U.S. elected officials
- The U.S. Chamber of Commerce
- The National Restaurant Association (our U.S. counterpart)
- U.S.-based restaurant chain representatives
Our message is clear: Food is essential and must be exempt from tariffs and counter-tariffs. We will continue to advocate for policies that protect restaurants, food suppliers, and consumers on both sides of the border.
Now is the time to act. We are committed to ensuring the restaurant industry thrives—despite economic and geopolitical challenges.
SUSTAINABILITY UPDATE
From Jillian Rodak | Vice President, Sustainability
February Sustainability Committee Meeting
Later this week, Restaurants Canada will be welcoming Environment and Climate Change Canada (ECCC) to our Sustainability Committee Meeting to discuss the Federal Plastics Registry and its reporting requirements. With the first phase of reporting due by September 29, key details remain unclear as the government has yet to finalize the reporting portal and Excel template.
To ensure ECCC is aware of member concerns, we invite you to share any questions with us ahead of the meeting at sustainability@restaurantscanada.org.
Ongoing Municipal Bylaw Engagement
Municipalities across Canada are increasingly developing bylaws to address commercial waste and single-use plastics. For example, Guelph is proposing to expand its existing single-use bylaw to include provisions for reusable containers, while Gatineau is considering new single-use and commercial waste regulations.
To ensure the industry has a strong voice at the table, we have been actively engaging with local governments to share our members’ perspectives and recommendations.
FEDERAL UPDATE
From Maximilien Roy | Vice-President, Federal & Québec
U.S. Tariff Threats – Restaurants Canada Advocating for Industry Support
The ongoing threat of U.S. tariffs on Canadian goods remains a serious concern, and Restaurants Canada is actively engaging with the federal government to ensure the foodservice industry’s voice is heard.
Over the past week, we have participated in meetings with officials from Finance Canada, the cabinet of the Minister of International Trade, the Minister of Small Business and the Prime Minister’s Office. In these discussions, we emphasized the potential impact of tariffs on our industry and the need for targeted relief measures to help restaurants navigate any economic fallout.
We’ve also met with the office of the Minister of Labour, to discuss what the government should do to help Canadians if tariffs are imposed over a long period of time. We’ve focused on the need to keep the link between employers and employees to reduce the recovery time once the tariffs are removed. We expect the government will provide more details on their plan to help Canadians and businesses should the worst scenario occur, but we’re encouraged by the conversations we’ve had.
As the situation evolves, we will keep you informed on any developments and how they may affect our industry.
ATLANTIC UPDATE
From Janick Cormier | Vice-President, Atlantic Canada
New Brunswick
On February 5th, the government of New Brunswick announced that due to federal cuts in the Provincial Nominee Program and the Atlantic Immigration Program, they would restrict applications to three priority sectors: Health, Education and Construction. This means that two main streams of labour have been closed for our industry.
On February 13th, we met with immigration minister, Jean-Claude D’Amours, and key departmental staff on this issue. We agreed to work together to continue to pressure the federal government to reverse their decision as well as to ask that the employees who are already here be allowed to renew their work permits and stay.
We know this is of big concern to our members and we will keep you updated on all new developments on the matter.
CENTRAL CANADA UPDATE
From Kris Barnier | Vice President, Central Canada and the North
Ontario
An election will be held on February 27th. Prior to the election, I will share a summary of the relevant commitments made by each of the major parties. Please visit Elections Ontario if you need help finding your riding, the eligible candidates, and information on where to vote.
Ontario PCs commit to increase the LCBO discount from 10% to 15% and commit to payroll tax relief. Kelly and I stood beside Ontario Finance Minister Peter Bethlenfalvy as he committed to increase the licensee discount an additional 5 percentage points. This commitment comes after intense lobbying from Restaurants Canada and represents a big win for our association and membership.
We project that for a full-service restaurant with approximately $2M in revenue, it may mean an additional $2,500-$3,500 in savings per year, or $7,500 to $10,000 per year when combined with the 10% discount Restaurants Canada secured in 2022. This represents approximately $110M in savings per year for the industry. This victory builds on other wins we have secured on alcohol from this government, including allowing alcohol sales on delivery/take out and freezing alcohol escalator taxes.
I sincerely thank the Ontario GR Advisory Committee and our Subcommittee on Alcohol for their hard work and support. We will continue to push for the discount to be extended to include beer in 2026, when LCBO becomes the wholesaler for beer for restaurants and bars.
Push for making the HST holiday permanent. All of the Regional VPs have been working hard to support our federal push for a permanent HST holiday on restaurant meals. As part of our efforts, Kelly and I recently met with Liberal Toronto-Danforth MP Julie Dabrusin, to talk about the success of the HST holiday and why it should be made permanent.
Manitoba
I will be in Winnipeg the week of February 24 for meetings with the Government of Manitoba to continue to advocate on top priorities, including tackling crime, workforce challenges, and alcohol pricing relief. I’ll also be speaking with government representatives about the expected impact of a U.S.-led trade war and supports our industry will require to protect restaurants and jobs.
MRFA Passion for Fare Gala 2025 – I am looking forward to the MRFA dinner honouring three iconic and highly respected leaders from Manitoba’s foodservices sector. Restaurants Canada proudly congratulates and commends Doug Stephen of Wow Hospitality, Steve Hrousalas of Rae and Jerry’s, and Grod Howard of the Keg Steakhouse.
WESTERN UPDATE
From Mark von Schellwitz | Vice-President, Western Canada
Consultations on the Canada-Alberta Job Grant Program
While the popular Canada-Alberta Job Grant training program closed in August 2024, the Alberta government is working on redesigning it and intends to relaunch in the spring of 2025. As a result, the Ministry of Jobs, Economy and Trade reached out to Restaurants Canada asking for our advice on designing a program that helps meet your workforce needs. The program previously provided up to $15,000 for employee training. We recommended the redesigned program include better marketing, easier application and eligibility criteria, more employer flexibility on utilizing training funds, and retention incentives for those employees hired and trained through the program. Please reach out with your experiences with the previous program and any additional suggestions for a redesigned Canada-Alberta Job Grant program.
BC MLA Meetings – Q4 2024 Quarterly Report
Restaurants Canada continues to reach out to newly elected BC MLAs to discuss restaurant industry challenges and solutions including the key issues discussed in the Q4 2024 Quarterly Report. Besides some virtual MLA meetings, earlier this month, I had a productive breakfast meeting with two new MLAs, Kelowna-Mission MLA Gavin Dew (Jobs, Economic Development, and Innovation Critic), and Prince George-Mackenzie MLA Kiel Giddens (Labour Critic). I look forward to meeting with more new MLAs in the coming weeks to discuss policies impacting BC’s dynamic foodservice and hospitality industry.
On behalf of the entire Restaurants Canada team, thank you for your ongoing support,
Kelly Higginson
