We were very pleased with the recent announcement regarding the mechanism to return carbon tax rebates for small and medium-sized businesses.
As we head into a busy advocacy season this fall, Restaurants Canada is actively engaged in efforts across the country, and we have several updates to share.
We were very pleased with the recent announcement regarding the mechanism to return carbon tax rebates for small and medium-sized businesses. Restaurants Canada played a key role in advocating for our industry’s needs during the development of this rebate program. We appreciate the federal government’s responsiveness, and you can find more details from Maximilien Roy in his section below.
The week of September 23rd, I headed to Ottawa with EVP of Government Relations and Public Affairs, Richard Alexander, for meetings with MPs and to attend and present at the Tourism HR Labour Market Forum. To say the political climate in Ottawa is charged and chaotic might be an understatement.
We continue to discuss lowering EI premiums for operators and employees along with our immigration and workforce priority, the “Ready to Work” immigration proposal, which focuses on matching and training newcomers already in the country. Canada currently has one million unemployed, work-permitted newcomers, while the restaurant industry faces 73,000 job vacancies. This is a proposed program to match and train newcomers that would benefit both employers and newcomers, as well as government, which is currently supporting this group of people who are located primarily in urban centres. This is a key priority in our pre-budget submission, and we continue to work closely on this issue.
One of our discussions was with MP Julie Dabrusin, who represents a riding heavily supported by the foodservice industry, with over $402,328,000 in foodservice revenues and employing over 4,000 people. That’s just one federal riding. Once again, a reminder to our government that this industry matters and is a significant contributor to all their ridings and communities across the country.
Additionally, I was able to continue conversations with Minister of Tourism, Soraya Martinez Ferrada, to discuss further support for our EI request.
At the Tourism HR Labour Market Forum, the CEO panel focused on working toward a resilient and stable workforce for the future of our industry. Workforce development requires active planning and investment, and we encourage employers to explore the various resources offered by Tourism HR Canada. These resources are available to support researchers, educators, employers, employees and job seekers in the tourism and hospitality sector.
Addressing workforce challenges will require careful planning, investment, and ongoing focus from Restaurants Canada and the foodservice industry. One key opportunity is investing in and embracing technology and highly efficient mechanical equipment to boost operational efficiency and productivity, and the employee experience. We are also engaging with various levels of government to secure tax credits and innovation subsidies for tech/automation upgrades that enhance productivity in the restaurant sector. Our Chief Economist, Chris Elliott, has highlighted several ways technology can improve operations in this year’s Foodservice Facts. These insights are valuable as you plan ahead.
Last week, I returned to Ottawa to meet with Senator Leo Housakos from Quebec and attended the Canadian Chamber of Commerce Association Roundtable. Led by new President and CEO Candace Laing, we reviewed the Canadian Economic Outlook and discussed priorities for the 2024-25 federal budget, alongside other key advocacy topics.
Speaking of Quebec, the foodservice industry plays a remarkable role in the province’s social and economic landscape. With more than 22,000 foodservice establishments employing over 220,000 individuals and generating over $19 billion in revenue! That is serious impact.
As the week wrapped up, we saw another Michelin celebration, this time in the culinary hotspot of Vancouver. The city’s dining scene is known for its remarkable diversity and vibrant array of culinary experiences. The latest selections were revealed October 3rd, including one new MICHELIN-Starred restaurant, Sushi Masuda, a new Bib Gourmand recipient, Gary’s, and two Recommended restaurants. This brings the total to 16 recognized establishments and 76 restaurants overall, representing 23 different cuisine types. See the complete list here.
Thanks to our partners at Groupex, Restaurants Canada is proud to provide all Michelin-recognized restaurants with a one-year membership to support their operations through advocacy, research, insights and support.
This year Groupex celebrates its 40th anniversary and I’d like to acknowledge the extraordinary support they’ve provided to restaurants across the country and applaud their ongoing growth.
Applications for RC Show 2025 Culinary Competitions are open NOW. This is a fantastic opportunity to recognize and elevate your team members by encouraging them to apply to compete in the Garland Canada Culinary Competition, Restaurants Canada Pizza Competition, and the all-new Breakfast Sandwich Competition live on stage at this year’s Show! Get all the details here, and keep an eye on upcoming applications for the Beyond the Rail Cocktail Competition, John Bil Oyster Competition, and Latte Art Championship.
2025 marks the 80th anniversary of the RC Show, and exciting updates are on the way. Keep an eye on your inbox this week for all the details!
GOVERNMENT RELATIONS & PUBLIC AFFAIRS UPDATE
From Richard Alexander | Executive Vice-President, Government Relations & Public Affairs
Employment Insurance Premiums: Pushing a payroll tax reduction across the finish line.
Restaurants Canada is nearing the end of our campaign to reduce employment insurance premiums for businesses and employees in 2025. On September 16, 2025, the actuarial report on the Employment Insurance Premium Rate was released, showing the fund is in a position to accommodate a very small reduction in rates. Our ask is for government to go much further.
The affordability crisis is the key reason to make such a move—a move that would help both struggling restaurants and our employees. Affordability is the key issue facing Canadians, and lowering EI premiums is a lever that governments have pulled before to accomplish this goal. If there ever was a time to lower this payroll tax, it is now.
Restaurants Canada has garnered support for this ask from MPs in meetings with regional VPs during the summer, our letter writing campaign to MPs, our Lift the Strain social media campaign, and strong media coverage. There have also been meetings with key cabinet ministers and various government departments. Those discussions continue. Restaurants Canada believes strongly that there is wide support for our ask and only minimal opposition.
There are only a few weeks left for government to make their decision on the rate. To push this issue across the finish line we have commissioned public opinion polling to further demonstrate to Ottawa that there is widespread public support for reducing this payroll tax.
The results of that polling will be presented to government and the official opposition and released publicly in the next couple of weeks. Our media efforts will be across the country with a strong focus on Ottawa news outlets to get the Hill talking about our ask and make it a priority. The environment in Ottawa is highly political right now, and over the next couple of weeks we will be working hard to inject ourselves into the conversation.
Lowering the EI payroll tax to the amount we are asking amounts to $1.7 billion in savings. This is a big ask for Restaurants Canada to make, but it is a responsible one. With half of restaurants either operating at a loss or just breaking even, and employees struggling to make ends meet, lowering the EI payroll tax will make everyone’s life a little more affordable. It is the right thing for government to do now.
Watch for the next Restaurants Canada CEO note to see the result of our public opinion polling.
SUSTAINABILITY UPDATE
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. Contact Kelsey Meyer at the email address above for any questions related to sustainability files.
Rising costs associated with provincial recycling programs.
At our October Sustainability Committee Meeting, we will be welcoming Allen Langdon, CEO of Circular Materials, to provide an update on the transition of curbside recycling programs to full extended producer responsibility (EPR) across the country (e.g., AB, ON, NB, NS, YT, etc.). As part of the transition to EPR, producer fees are expected to increase significantly in 2025.
For members interested in learning more about program transitions and fees, we encourage you to register for the Annual Producer Meeting on October 24. This annual session will provide an update on recycling program performance as well as 2025 budgets and fee estimates, where relevant. It will be jointly hosted by RecycleBC, Multi-Material Stewardship Western, Multi-Material Stewardship Manitoba, Stewardship Ontario and Circular Materials.
Upcoming recycling oversight fee consultation for Alberta.
We will be engaging with the Alberta Recycling Management Authority (ARMA), the oversight body for Alberta’s curbside recycling program, as they will be launching a fee consultation in October. Ultimately, fees will be charged to producers to cover ARMA’s oversight costs for the program. Given the added cost impacts, we will be working with members to prepare a submission.
Latest round of federal consultations has wrapped up.
We wrapped up a number of submissions to the federal government over the past few weeks including a response to Competition Bureau Canada on their new greenwashing provisions to help inform forthcoming enforcement guidance. In addition, we prepared a response to Health Canada as they look to develop a mandatory food packaging review program in the coming years. We will continue to remain closely engaged with the federal government as conversations progress on these topics, as well as plastics and circular economy policy.
FEDERAL UPDATE
From Maximilien Roy | Vice-President, Federal & Québec
Federal: Ottawa signaling potential reduction in immigration levels.
In a recent interview , Immigration Minister Marc Miller suggested that Canada might consider reducing its immigration targets in response to concerns over housing and services capacity.
While the government remains committed to welcoming new immigrants, Miller acknowledged the need to ensure these resources keep pace. This potential shift in policy could have significant implications for labour supply, particularly in industries like foodservice.
Restaurants Canada will keep you updated on any official announcements or changes that may affect the industry.
Federal: Carbon Tax Rebate —a necessary relief.
We are pleased to share that newly introduced carbon pricing rebates will offer direct financial relief to foodservice operators, varying by location and workforce size. For example, a restaurant with 10 employees could receive up to $4,010 in Ontario or $11,560 in Saskatchewan. This does not apply to Quebec and British Columbia, which have their own carbon pricing models.
While this is a positive step, we continue to advocate for broader cost reductions, including lower Employment Insurance premiums, and await further government decisions.
Details on how much businesses will receive can be found here.
Quebec: National Assembly begins study of Bill 72.
Quebec’s Bill 72, which includes provisions on tipping and other labour practices, has begun its legislative study. We are closely monitoring the discussions and will keep members informed as the study progresses and next steps are announced. Stay tuned for updates on how this legislation may affect your business.
ATLANTIC & CENTRAL CANADA UPDATE
From Kris Barnier | Vice President, Central Canada and the North
Nova Scotia: Province announces additional support for wine industry.
The new program includes direct funding for farm wineries and commercial wineries, with the province covering costs for a new wine authority and the development of a broader long-term wine sector growth plan. Funding and other details can be found here.
PEI: Ignition Fund applications open.
The second intake for the 2024 Ignition Fund is now open. The program offers up to $25,000 to Island entrepreneurs to launch or expand a business. Further information can be found here.
PEI: Paid sick leave is now in effect.
The province made amendments to the Employment Standards Act giving employees the right to the following paid sick leave:
- One day of paid sick leave after 12 months of continuous employment.
- Two days of paid sick leave after 24 months of continuous employment.
- Three days of paid sick leave after 36 months of continuous employment.
Employees are entitled to their standard wages for the hours they would have worked had they not taken leave. Salaried employees will be compensated at their regular daily rate. For more information, please click here.
Ontario: Meetings with federal MPs.
I recently had opportunity to meet with Milton MP Adam van Koeverden (Ontario Liberal Caucus Chair) and Sarnia-Lambton MP Marilyn Gladu (Conservative) to talk about the challenges facing our sector and how lowering EI premiums could bring much-needed relief for our sector. I am looking forward to other upcoming discussions with additional MPs.
Ontario: Alcohol transformation.
In the coming weeks we expect the Ontario government to launch a formal consultation on alcohol taxation and wholesale pricing for restaurants and bars. We are keeping close contact with key government officials and have made it clear that the consultation represents a meaningful and strategically important opportunity to target relief for our industry.
Ontario: Fall engagement.
With the summer holiday season over, Ministers and staffers are preparing for the fall session. We will be re-upping our efforts and outreach with key MPPs, Ministers and staffers to talk about the wellbeing of the industry and actions the government can take to help protect our sector and the jobs we provide to Ontarians.
Manitoba: Provincial Action Campaign Reminder: Send your electronic postcard to Premier Kinew and your MLA today!
Working closely with MRFA, we’re working hard to give voice to our Manitoba members and build pressure to drive the provincial government to act on your priorities, engaging with government to help them understand how rising crime rates and costs are threatening your business, employees and customers.
That is why we are asking you to click here to send a pre-programmed, electronic postcard to Premier Kinew and your MLA that calls on them to help the province’s restaurants and bars by acting on three priorities:
- Expand the Manitoba Security Rebate Program – Increase overall program funding and allow restaurants and bars to claim up to $2,000 in repairs due to crime, and an additional $1,000 to help secure their businesses.
- Employee Training Grant Program – Pilot a program that will offer funding to help restaurants and bars attract and train employees.
- Liquor Pricing Discounts – Formally consult with the industry on lowering the prices restaurants and bars pay for alcohol.
Manitoba: October visit.
I was in Manitoba last week to meet with elected officials and staff to talk about urgent industry priorities and the actions we are asking them to take to help you grow profitability and to protect the physical and financial wellbeing of your business. I look forward to sharing more soon about my meetings with the Office of the Premier, PC Leadership candidate Obby Khan, and other key figures.
MRFA and I met with key ministers and MLAs to discuss these urgent priorities and what the provincial government can do to help protect your business, patrons and employees. On October 4th, we participated in a Retail Secure Manitoba Summit to talk with other businesses and the government about what can and must be done to tackle crime targeting businesses. I look forward to sharing more soon.
Yukon: Government announces measures to tackle crime in Whitehorse.
In response to a challenging summer that saw an increase in property crime and criminal behaviour, the Yukon government has announced new public safety and harm reduction measures.
WESTERN UPDATE
From Mark von Schellwitz | Vice-President, Western Canada
Saskatchewan: Minimum wage increases to $15/hour.
On October 1st, Saskatchewan’s minimum wage increased from $14/hour to $15/hour. This is the final increase from the government’s 2022 announcement that Saskatchewan was temporarily abandoning their objective minimum wage increase formula to subjectively raise minimum wage by 27 per cent from 2022 to 2024. In 2022, the minimum wage increased from $11.81 to $13/hour, and in 2023, the minimum wage increased from $13/hour to $14/hour, culminating in the October 1st increase from $14/hour to $15/hour.
We understand that, should the Saskatchewan Party be re-elected, they will return to the previous objective minimum wage indexation formula that was in place prior to 2022. The objective minimum wage formula takes into consideration the Consumer Price Index and average hourly wage increases in adjusting the province’s minimum wage.
Restaurants Canada addressed minimum wage in our pre-election policy submission recommending the return to an objective minimum wage indexation formula, a minimum wage adjustment rebate, and the introduction of a liquor server and youth wage minimum wage differential.
Saskatchewan: October 28th election.
In August, in preparation for the October 28th Saskatchewan election, Restaurants Canada provided the major parties with our Saskatchewan 2024 pre-election policy submission. The submission provides a state of the industry update and makes 10 priority policy recommendations we encouraged parties to address in their platforms.
Now that the writ has dropped and the campaign is officially underway, we encourage Saskatchewan members to raise these policy priorities with their local candidates.
More information on the two major parties, their candidates, and their platform commitments, can be found on their party websites, www.saskparty.com and www.saskndp.ca.
BC: Policy victory! WorkSafeBC pauses verifiable gratuities as assessed payroll policy.
After learning about WorkSafeBC’s (WSBC) 2024 practice directive policy to have employers include all verifiable gratuities as assessed payroll, Restaurants Canada and our BCRFA colleagues raised concerns in a meeting with Tourism Minister Popham in late July. This WSBC policy was implemented without any consultation, and the industry was largely unaware of the policy which would significantly increase WorkSafeBC premiums for the foodservice industry at a time when it can least afford it.
Since that time Restaurants Canada and BCRFA have met with senior WSBC officials to discuss our concerns and possible solutions on the verifiable gratuities as assessed payroll policy concerns. On September 23rd, WSBC confirmed that they will be pausing the inclusion of verifiable gratuities as assessed payroll Practice Directive, acknowledging that BC restaurant owners need to be consulted and engaged prior to making any gratuity as assessed payroll policy changes, per our recommendations.
Starting in early 2025 Restaurants Canada and BCRFA will assist WSBC in engaging restaurant owners for a consultation on proposed gratuity-related policies. WSBC also stated that the goal of any policy change is to distribute premium costs more equitably rather than increasing the amount of premiums being collected by WSBC.
We will be reaching out to members for their input on the WSBC consultation when more information is available early in the new year.
BC: Get ready to vote on October 19th.
The BC election campaign is now well underway and promises to be a close finish with the BC Conservatives and NDP statistically tied as we enter the final few weeks of the campaign.
Over the past few months Restaurants Canada has met with both Premier Eby and BC Conservative Leader John Rustad to discuss our pre-election Save BC Restaurants Menu of Issues restaurant industry policy priorities. Restaurants Canada encourages members to meet with their local candidates and discuss their policy priorities as outlined in the Menu of Issues. More information on the parties’ election announcements, their candidates, and their platform commitments can be found on their party websites www.bcndp.ca, www.conservativebc.ca, and www.bcgreens.ca.
The Foodservice Facts 2024: Charting a Path to Prosperity webinar is now available on demand! Don’t miss this opportunity to gain exclusive insights from our Chief Economist and VP Research, Chris Elliott, as he presents the latest trends, challenges, and opportunities shaping the Canadian foodservice sector. Whether you’re looking to refine your strategy, tap into new growth areas, or simply stay ahead of the curve, this webinar is the perfect complement to the must-read annual industry forecast.
Also, registration is open for the upcoming Mythbusting: Sustainable Seafood and Plastics Explained webinar, presented by Restaurants Canada and Ocean Wise, streaming live on October 22nd. Ocean Wise experts will cut through the noise on greenwashing myths surrounding plastics and sustainable seafood and highlight their mission to tackle plastic pollution in our oceans. Hear how their Seafood Program is partnering with local restaurants to national brands to create a sustainable seafood market, and learn about the realities of overfishing, what it means for seafood to be “sustainable,” and how your business can make a tangible difference in protecting ocean health.
I encourage you to take some time for yourself and your loved ones this holiday weekend. Enjoy the change of pace, whether that means relaxing, sharing a meal or just taking a moment to appreciate the season.
Wishing you a restful and well-deserved weekend with family and friends,
Kelly Higginson
