The Government of Canada acknowledged the critical importance of the foodservice industry with this announcement

December 3, 2024 Share on your social channels

It has been a busy time for the team at Restaurants Canada as we continue to advocate for our $114 billion foodservice industry, while ensuring we stay focused on our mission and vision.

GST/HST Tax Holiday

As recently reported, just over a week ago the Government of Canada acknowledged the critical importance of the foodservice industry when it announced it will cut GST and the GST portion of HST on all restaurant meals, as well as beer, wine, cider and pre –packaged coolers under 7% alcohol from December 14 to February 15, known as the “GST/HST Tax Holiday.”

The federal government did not have to include restaurants, and they did not have to include alcohol.

The inclusion of restaurants and alcohol in the tax holiday was a direct result of Restaurants Canada’s year-long lobbying on the impact our industry has on the social and economic fabric of Canada, and the need for support for our industry to continue serving our communities. Advocacy is a slow, steady, strategic and relentless process, and this is a prime example of what impactful, strategic advocacy looks like. This moment is the result of a team effort that requires support and funding. As we celebrate this win, we thank our members for their dedication and ongoing support, as well as our sponsors. Without you, none of this would be possible. You are part of this success, and your investment in the foodservice industry benefits the entire sector—so celebrate it proudly!

In fact, we were the only association invited to join the Prime Minister and Deputy Prime Minister at the announcement.

Make no mistake—this initiative will make a BIG difference for our industry at a time when it’s needed most. According to our most recent REACT Survey, restaurants are grappling with alarmingly low consumer demand, as Canadians dine out less while struggling with affordability. This tax holiday offers a compelling incentive for Canadians to enjoy a meal out or indulge in that drink or dessert they’ve been skipping.

Our chief economist projects nearly $1 BILLION in additional sales for our industry as a result. This figure doesn’t yet account for provinces that may choose to include provincial sales tax in the holiday, which could push this number significantly higher as more provinces come on board.

Our Restaurants Canada Government Relations team is actively lobbying those provinces that have yet to commit to the holiday.

Read our most recent press release on the GST/HST Tax Holiday win here.

Check out our GST/HST Tax Holiday resource support for restaurants here.

Ongoing advocacy and growing impact for restaurants.

We continue to advocate for meaningful change and expand the impact of this important win by urging provinces to follow the federal lead and exempt restaurant meals from provincial sales taxes. We are thrilled to share that we now have Ontario as well as Newfoundland and Labrador on board.

This initiative is expected to deliver a significant (and much-needed) boost to restaurant spending, with sales projected to rise by $1.5 billion during the tax holiday. This potential impact underscores the critical role restaurants play in Canada’s economy. Generating $120 billion in annual sales and employing nearly 1.2 million workers, the restaurant industry is not only a key economic driver but also the fourth-largest private sector employer in the country. Our regional team has provided further details below:

Upcoming webinars.

To support our members, we continue to host webinars that aim to address the questions and concerns operators face as they navigate the most pressing challenges in the foodservice industry.

Canadian GST/HST Holiday – What it is and how to prepare

Thursday, December 5, 2024, at 11 AM PST

This 25-minute livestream by Squirrel POS will examine the new GST/HST changes announced by the Canadian government as well as what operators need to know and how it might benefit your business.

Watch the livestream here.

Our most recent webinars are now available to watch on demand:

Immigration Cuts & What It Means for Canada’s Foodservice Industry
Presented by Restaurants Canada with Canadian Chamber of Commerce and Saskatoon Immigration & Employment Consulting Services Inc.

Watch here.

Unlocking Cost Savings through Volume Pricing & Rebates

Presented by Groupex Canada

Watch here.

COMING SOON: Managing the Impact of U.S. Tariffs on Canadian Foodservice
Wednesday December 11^th at 1:00PM EST.

How will the proposed U.S. tariffs impact Canada’s foodservice industry? Could shifting trade policies create significant challenges for operators and suppliers alike? Join this webinar as Restaurants Canada hosts leading experts to provide:

Clarity on evolving trade policies, including the CUSMA review and their implications.
The economic and operational impacts that U.S. tariffs will have on Canada + our industry.

Stay tuned—webinar registration opens soon! Don’t miss your chance to join us.

SUSTAINABILITY UPDATE

Wrapping Up Federal Consultations.

We are in the process of wrapping up submissions to the federal government related to the modernization of the Canadian Environmental Protection Act (CEPA), a cornerstone piece of environmental legislation. Ultimately, the government is looking to strengthen Canada’s chemicals management regime, increase transparency, and enshrine the right to a healthy environment for every individual in Canada.

As this will have implications for how chemicals will be identified, assessed and regulated in the future as well as how environmental initiatives will be designed and implemented, we have been actively engaging to shape this foundational work.

Global Plastics Treaty Negotiations.

Thousands of delegates from around the world have been in South Korea over the past week to negotiate a global treaty to end plastic pollution. As talks wrapped up on December 1^st, Restaurants Canada is in the process of reviewing outcomes and implications for the Canadian foodservice industry. More to come in future CEO notes.

Upcoming December Sustainability Committee Meeting.

Later this week, Restaurants Canada will be hosting its last Sustainability Committee Meeting of the year. In addition to looking back at the status of key files and consultations in 2024, we’ll look ahead to 2025 including:

Election considerations.
High risk/priority jurisdictions for single-use bans, reuse and food/organic waste requirements.
The evolving landscape for climate and sustainability disclosures.
Upcoming tools and resources to support members with tracking and compliance.

Note: Restaurants Canada’s VP of Sustainability is currently on maternity leave. We congratulate her on the birth of her new baby boy. Sustainability initiatives are being managed by the team at Clear Strategy.

FEDERAL UPDATE

From Maximilien Roy | Vice-President, Federal & Québec

Federal: Fall Economic Statement expected soon despite delays.

As December begins and winter approaches, we are still anticipating the federal government’s Fall Economic Statement. Despite parliamentary filibusters, Finance Minister Chrystia Freeland has assured Canadians that the statement will be delivered in the coming weeks.

Restaurants Canada has been actively advocating for the inclusion of key priorities to support the foodservice sector’s recovery and growth. Our recommendations include:

Lowering the Employment Insurance (EI) Premium Rate: Reduce the rate from 1.64 per cent to 1.58 per cent, easing payroll tax burdens and supporting job creation in our labour-intensive industry.
Implementing a Matching and Training Program for Newcomers: Introduce programs similar to the Destination Employment Program to connect newcomers with job opportunities in foodservice and train them, addressing labour shortages and facilitating workforce integration.
Rejoining UN Tourism and Hosting the World Forum on Food Tourism: Strengthen Canada’s global leadership in tourism by showcasing our rich culinary heritage and diverse culture. Highlight Canadian businesses that are succeeding internationally, recognizing their role as cultural ambassadors.
Promoting Careers in the Tourism Sector: Fund a national campaign encouraging young Canadians (18-24) and underrepresented groups to explore rewarding careers in tourism, emphasizing the sector’s economic importance.

These priorities are aimed at reducing costs, driving investment and addressing workforce challenges to ensure the long-term viability and growth of Canada’s foodservice sector. Stay tuned for updates on how the Fall Economic Statement will shape our industry’s future.

Quebec: Partial postponement of deposit reform.

The government announced an administrative investigation into the Association québécoise de récupération des contenants de boissons (AQRCB) due to delays, a lack of transparency and challenges in managing the reform.

In response to growing concerns, the phase planned for March 1, 2025 has been partially postponed:

Plastic containers will be included as scheduled.
Glass containers (wine bottles, spirits, etc.) and multilayer packaging (milk cartons, juice boxes, etc.) have been deferred to 2027 due to logistical and sanitation challenges.

We will keep you updated on future changes to the reform as soon as we hear more.

ATLANTIC & CENTRAL CANADA UPDATE

From Kris Barnier | Vice President, Central Canada and the North

Nova Scotia: PCs win re-election.

On November 26^th, Premier Tim Houston and the Nova Scotia PCs secured another majority government after a snap election where “affordability” and related issues dominated the debate. The PCs made three key commitments:

Houston pledged to reduce the province’s small business tax rate from 2.5 per cent to 1.5 per cent. In addition, he committed to raise the small business tax threshold from $500,000 to $700,000, thereby allowing more small businesses to benefit from the lower small business tax rate. Once implemented, a business will pay $10,500 on $700,000 versus $12,500 on the first $500,000 and $28,000 (or 14 per cent) on the next $200,000. In total, this represents $30K in savings for a business.
The Premier further reaffirmed the PC plan to move forward with a 1 per cent cut to the HST.
Of concern, the PCs have promised to increase minimum wage to $16.50 by late 2025.

The full PC platform can be found here. We will share additional details regarding next steps for the government as they become available.

New Brunswick: Throne Speech

While the November 19th Speech from the Throne highlighted the new government’s agenda, it contained no specific commitments of direct impact to our sector. The full speech can be found here.

Newfoundland and Labrador: Province to match federal sales tax cuts.

The province will match the federal government’s recently announced cuts to federal sales tax. For more details, see here.

Ontario: RC advocacy win on WSIB rates and ongoing discussions on the future of alcohol pricing.

As shared recently, the Ontario government announced it will return more than $2B in surplus WSIB funds to employers in 2025 and will reduce the rate for the restaurant sector (Leisure and Hospitality) from $1.00 to $0.95. This will result in a savings of $300 for a business with $600K in insurable earnings.

This has been an advocacy point for Restaurants Canada and we are pleased to see the government is taking action to help businesses, including the restaurant sector, find savings.

The Ontario government is actively consulting with stakeholders on the future of alcohol pricing, including both tax and wholesale mark ups. After working through the summer with the support of our Ontario GR Committee and Sub Committee on Alcohol Policy, we are actively engaging the government to advocate for the expansion of discount pricing for restaurants and bars.

Alcohol pricing has long been a key advocacy point for Restaurants Canada and we have enjoyed significant wins with the government to date, including alcohol with home delivery and takeout from restaurants, discount pricing for restaurants and bars on LCBO purchases, and the freezing of alcohol escalator taxes.

Manitoba: Cabinet shuffle and throne speech.

Premier Kinew recently shuffled his cabinet and the government’s priorities were affirmed in a Speech from the Throne. The government reaffirmed its commitments to address affordability and tackle crime.

Following the throne speech and shuffle, I was pleased to be in Manitoba last week to speak with elected officials to urge them to take action on our priorities, including alcohol pricing, training grants and growing the crime rebate program.

WESTERN UPDATE

From Mark von Schellwitz | Vice-President, Western Canada

Saskatchewan: Legislature resumes.

Following the October 28^th election and a new cabinet being sworn in on November 7^th, the new Saskatchewan government opened the first session of the Legislative Assembly with a Throne Speech on November 25^th outlining the its agenda to implement election commitments to keep Saskatchewan’s economy strong and make life more affordable.

The government is also introducing its first bill, The Saskatchewan Affordability Act as well as The Safer Communities and Neighborhoods Act.

Restaurants Canada has reached out to key ministers with congratulations and meeting request letters to discuss restaurant industry policy priorities.

Alberta: Tourism Economic Forum and Premier’s Dinner.

On November 19^th, Restaurants Canada was pleased to join several tourism and hospitality industry stakeholders to participate in the first Alberta Tourism Economic Forum and Premier’s Dinner event in Edmonton.

The event was a great opportunity to discuss various tourism and hospitality policy priorities with numerous speakers including the Premier, and several ministers and MLAs. The following day, Restaurants Canada also participated in an Alberta Tourism Industry Association’s Advisory Committee to discuss ongoing restaurant industry challenges.

British Columbia: New cabinet sworn in.

Following the October 19^th election and a number of recounts, on November 18^th the elected government swore in a new cabinet with a number of new ministers. Mandate letters will be sent to the new ministers early in the new year and given the slim majority, the new government has postponed recalling the legislature until early February 2025.

Restaurants Canada is reaching out with letters to congratulate key ministers and request meetings.

British Columbia: BCHA Destination Canada Mobility Forum invitation.

The BC Hotel Association (BCHA) has invited Restaurants Canada members to participate in the upcoming Destination Canada Mobility Forum at BCHA member prices.

The Destination Canada Mobility Forum is an annual hiring event connecting workers in France, Cameroon and other French-speaking countries with Canadian employers. Organized by Immigration, Refugees and Citizenship Canada (IRCC) and the Canadian Embassy to France, it’s part of the Francophone Mobility Program. The BCHA attends the Forum on behalf of participating hotels and restaurants interested in connecting with Francophone and bilingual workers. It’s a great opportunity to connect with qualified candidates seeking new opportunities in Canada. These candidates benefit from speaking with our team about potential work opportunities and employers, immigration programs, and accessing tools and resources that prepare them for the Canadian job market.

Each participating hotel or restaurant receives access to a pre-screened pool of candidates, their resumes, and a written summary of the conversation that took place at the Forum.

Paris, France: February 14-15, 2025
Douala, Cameroon: February 18-20, 2025

Additional details:

BCHA representatives meet with job seekers and explain the pathways to come to Canada and answer candidates’ questions. BCHA then meets with candidates in person and evaluates their skills and experience to meet job orders from participating hotels.
This program DOES NOT require an employer to apply for a Labour Market Impact Assessment (LMIA). Through the Francophone Mobility Program, skilled and unskilled workers will be able to obtain work permits.
Workers who do not qualify for this program can still come to Canada but will require an approved LMIA. Work permits for both these programs would be issued for two years and are employer specific.
Workers may also be eligible for a working-holiday permit (also LMIA exempt) depending on their citizenship and would be issued an open work permit for a minimum of one year.

Cost:

Member price: $1,200 – Restaurants Canada members will receive this price and have their own registration ticket for tracking.
Non-member price: $1,800

More information can be found here – https://bcha.com/destination-canada-mobility-forum/

BCHA’s initial registration deadline is December 6th to confirm attendance; however, they are able to continue accepting registrants up until they leave. Each registered property or business can recruit for up to three positions (unlimited hires for each position).

Interested members can contact BCHA’s project manager Karissa Bourgeault at karissa@bcha.com, with any further questions.

British Columbia: Vancouver Council addresses gas heating ban for new construction.

On July 23^rd, Vancouver City Council voted narrowly, six to five, to direct staff to provide an option allowing natural gas heating and hot water for new construction, as part of the city’s BC Zero Emissions Building Plan. This decision diverged from previous Council direction, which called for the phase-out of natural gas hookups for heating and hot water in new construction, permitting only electric heating and hot water. Gas hookups would still be allowed for cooking and natural gas fireplaces.

On November 12^th, city staff presented a report to Council with two options: to either allow gas heating and hot water in new construction or to continue with the original ban on natural gas for heating and hot water in new builds. This report was discussed by Council on November 26^th. Restaurants Canada, together with its Coalition of Dependable & Affordable Energy (CADE) partners, engaged with councillors and strongly recommended the option to allow natural gas heating in new construction. The issue attracted significant public interest, with 142 speakers—Restaurants Canada among them—divided on the matter. Environmental activist groups urged Council to maintain the natural gas ban for new construction, while small businesses and CADE partners advocated for energy choice and affordability, supporting the option to allow natural gas heating.

Due to the high number of speakers, the issue was extended to November 27^th. After all 142 speakers had their say late that evening, Council voted five to five. Mayor Sim and four councillors supported the recommended option to allow natural gas heating in new construction, but it fell one vote short of passing. Restaurants Canada and its CADE partners are deeply disappointed by the outcome, which mandates that all new construction will be required to use electric heating only. However, gas hookups for cooking and fireplaces will still be permitted.

Together, let’s continue to advocate for meaningful change and build a strong, vibrant future for Canada’s foodservice and restaurant industry. Your voice and support are vital as we work toward a thriving, sustainable sector that serves and supports our communities.