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Restaurants Canada continues to tirelessly highlight the significant impact of the LCBO strike on the foodservice industry

July 15, 2024 Share on your social channels

The Restaurants Canada Intelligence team has been very busy creating tools and resources to elevate the knowledge and vision of operators across the country and to help deliver on our mandate of fueling and supporting the foodservice industry.  

Research and data have never been more important for businesses, so I am particularly delighted to announce the launch of the Restaurant Industry Fast Facts page on restaurantscanada.org. Scroll, click and test-drive this national industry dashboard to access comprehensive, segmented data by region and restaurant category, with comparative views of both YOY/YTD industry performance. We encourage you to explore these valuable and diverse insights, which will be updated monthly, and put them to great use! 

I am also very thrilled to announce a new and potentially game-changing Ontario initiative, Pathways to Careers in Foodservice. Restaurants Canada has been hard at work on a tailored array of programs designed to address our industry’s labour and skills gap and bolster restaurant and foodservice operations through an array of grants, subsidies and recruitment support. Funded by the Government of Ontario’s Skills Development Fund, this initiative focuses on enhancing workforce development and promoting the employment of individuals from under-represented groups.  

Restaurants Canada is grateful to the Minister of Labour, Immigration, Training and Skills Development, the Hon. David Piccini, for the Government of Ontario’s significant investment in the foodservice sector. As the fourth-largest private employer in the province, we employ a diverse cross-section of the population and serve communities across Ontario. This support is instrumental in fostering the growth and prosperity our industry needs to thrive. Please visit the Pathways to Careers in Foodservice web page here for more information. 

I’d like to introduce Donald Guse Salah, our dedicated Project Director, who will be your main point of contact for this program. With his extensive expertise in workforce development, Donald is dedicated to helping you navigate through and fully benefit from this initiative. He is ready to address any questions, offer personalized support, and ensure your success. You can reach Donald directly at DSalah@restaurantscanada.org. 

The 2024 Calgary Stampede closed yesterday. I would like to acknowledge the significance of the Stampede and similar events across the country for their incredible contributions to both the provincial and national economy and the crucial role they play in bringing people together. This iconic event is not only a vital driver of tourism, attracting over a million visitors each year, but also serves as a key touchpoint that strengthens the hospitality industry, generating an estimated $282 million in economic activity during its ten-day run. Of this amount, approximately $227 million directly benefits the City of Calgary. The Calgary Stampede’s rich tradition and vibrant celebrations create a welcoming environment that benefits countless businesses and highlights the cultural and economic vitality of our foodservice community. We extend our gratitude to all those who make this event a success year after year and for hosting such an important tourism offering. 

Back in Ontario, Restaurants Canada continues to tirelessly highlight the significant impact of the LCBO strike on the foodservice industry, emphasizing that this disruption comes at a particularly challenging time. The industry has already weathered a series of extraordinary and successive headwinds, including the prolonged effects of the COVID-19 pandemic, supply chain disruptions, and rising operational costs. The LCBO strike exacerbates these challenges by constraining the availability of key products.  

As highlighted on Friday to our Ontario members, we are now into the second week of the LCBO strike which has significantly impacted the industry’s 14,000+ licensed operators. If you haven’t yet completed the LCBO impact survey, I urge you to do so immediately. Your participation is crucial for our advocacy efforts. 

Since the start of the strike, we have been grateful for your ongoing communication regarding your experiences and forecasts. Your calls, emails, and survey responses have provided us with crucial insights that enable us to advocate effectively on your behalf. Thank you. 

Late last week, I had a discussion with Premier Ford and Minister Bethlenfalvy to relay the concerns you’ve shared with us. Restaurants Canada’s VP Central, Kris Barnier and I have maintained close contact with both the government and LCBO over the weekend, and our team will remain engaged with them throughout the strike. Our message to them has been clear. 

While we cannot yet, fully quantify the impact of the union’s efforts to disrupt LCBO services or other factors, we have emphasized to them that the current contingency plan is not working and that your businesses are not able to find available inventory for most products listed.     

We underscored the critical role of alcohol sales (via LCBO products) to your businesses and highlighted the potential consequences if a satisfactory resolution is not reached promptly. 

Additionally, we made it clear that although we understand the current situation is far from normal  and that it will continue to NOT be business-as-usual, it is essential that they make it their highest priority to support restaurants and bars with the limited resources available to them. 

I am grateful to Premier Ford and Minister Bethlenfalvy for listening to our concerns and acknowledging the importance of prioritizing our sector. Although operations are disrupted, it is evident that both the LCBO and the Government of Ontario are actively seeking solutions to address the challenges affecting our access to products. We will continue to monitor the situation closely and maintain ongoing communication with our members to promptly address any significant issues arising as the industry adapts to revised LCBO service plans. 

As we advocate on your behalf, it is critical that we are armed with information that spells out exactly how the strike is impacting your business and what you forecast if the strike continues to drag on. That is why we are asking you to please complete the impact survey. I cannot emphasize enough the importance of the survey information for our discussions. If you oversee multiple operations, please distribute the survey to ensure we gather comprehensive feedback. There is strength in numbers, and we are collaborating with other organizations to assess the strike’s broader impact on sectors reliant on the LCBO. 

 FOLLOW THE STORY: 

GOVERNMENT RELATIONS & PUBLIC AFFAIRS UPDATE

From Richard Alexander | Executive Vice-President, Government Relations & Public Affairs

Richard is away on vacation, returning next week. 

SUSTAINABILITY UPDATE

From Jillian Rodak | Vice President, Sustainability

National: Federal Government Issues Consultation Document for Textile & Apparel Sector Waste with Possible Implications for the Restaurant Sector 

The Federal Environment Minister, Steven Guilbeault, published a consultation document on the development of a roadmap to address plastic waste and pollution from the textile and apparel sector. The proposed environmental objective is “…to prevent textile and apparel waste (including microfibres) from going to landfill or incineration or leaking into the environment as pollution” with a focus on redesign, reduce, reuse, repair and recycling of products over energy recovery and landfilling.  

Restaurants are referenced in the discussion questions, including a question on collection of textile waste data. Restaurants Canada is reviewing the consultation and monitoring for further information to determine how we will engage in this process and will keep you informed along the way. 

Toronto: City Announces the Development of a Circular Economy Roadmap  

The City of Toronto announced it is developing a circular economy roadmap, including a 10-year strategy to make Toronto the first “circular city” in Ontario. As part of the lead up to this, the City conducted a baseline circularity study (published in 2022) which identified three sectors as having the greatest potential for circular economy impact: waste management, construction and the food system. RC is developing an engagement approach to ensure the foodservice industry is a voice at the table as this strategy is developed. 

PEI: Department of Agriculture Developing Strategy to Address Food Waste & Food Insecurity 

The PEI Department of Agriculture is developing a Food Waste Reduction Strategy to address food waste and food insecurity in the province. They have launched an initial consultation that closes on August 14, 2024. As part of Phase 2 of this initial consultation, the province will host engagement sessions with partners involved in the food supply chain and foodservice to collect input into the strategy. We will be preparing a submission for the consultation and are monitoring for additional announcements on the engagement sessions. 

FEDERAL UPDATE

From Maximilien Roy | Vice-President, Federal & Québec

Federal: Heads Up – Potential Increase in LMIA Application Fee 

We’ve learned that the government is currently reviewing the LMIA application fee, which means the current $1,000 cost is likely to increase soon. If you are considering adding more temporary foreign workers to your workforce, we recommend submitting your application promptly to avoid this probable cost increase. 

It is our hope this fee review will allow the government to hire more workers and reduce current delays in the processing of LMIA applications.  

Federal: Upcoming Consultation this Fall Regarding Marketing to Children 

Health Canada is set to launch a consultation this fall regarding marketing to children, aiming to introduce regulatory changes by 2025 (possibly in the spring, but more likely in the fall of 2025). It is anticipated that in-restaurant advertising and broadcasting will be key areas of focus, potentially affecting how menu items can be promoted. 

We have established monthly meetings with the Minister’s office to discuss this topic and will prepare a submission for the consultation once it begins. Stay tuned for more information. 

ATLANTIC UPDATE

From Jordi Morgan | Vice-President, Atlantic Canada

New Raise the Bar Report in the Works as Restaurants Canada Works to Modernize Beverage Alcohol Regulations  

While the Ontario LCBO strike has been drawing a great deal of national media attention, Restaurants Canada is continuing its work to modernize beverage alcohol regulations across the country. 

Work has begun on a new Raise the Bar report, our biennial examination of how provincial governments manage beverage alcohol sales across the country, with its release planned for late 2024. A new methodology is being developed to best reflect how well each province regulates licensing, retail sales, wholesaling and distribution, and what steps are being taken to modernize how beverage alcohol is regulated. 

I have been consulting with provincial finance managers and the senior management of the provincial retail monopolies in Atlantic Canada to gather information and advocate for better beverage alcohol frameworks. 

To support this work, over the past month, I have met with the finance minister of New Brunswick, Ernie Steeves, Newfoundland and Labrador’s finance minister Siobhan Coady, and Newfoundland Labrador Liquor Corporation COO Wally Dicks, and have most recently met with the CEO of the PEI Liquor Control Commission Danny MacDonald and PEI finance minister Jill Burridge. The purpose of these meetings is to enhance Restaurants Canada’s understanding of the provinces’ plans and intent to modernize their systems to meet the needs of a 21st century marketplace and to provide input from our industry.  

A meeting with the Nova Scotia Liquor Corporation CEO Greg Hughes is planned for August, and Restaurants Canada will be consulting with other governments and industry stakeholders in the months ahead.  

Atlantic: Hitting the Road & the Airwaves 

I have also made multiple appearances on regional media as the summer season gets underway, with interviews with the Todd Veinotte Show on CityNews 95.7 in Nova Scotia, Tim Powers on VOCM in Newfoundland and Labrador, Tara Clow on Acadia Broadcasting in New Brunswick, and CBC Radio and digital on Prince Edward Island. Topics have included Restaurant Canada’s campaign to encourage the federal government to Lift the Strain on small business with EI and CPP relief, the state of the summer tourism industry, and the impact of “dine and dash” incidents. 

CENTRAL CANADA UPDATE

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

Ontario: Restaurants Canada Highlights Impact on Restaurants as LCBO Strike Carries On 

Restaurants Canada remains in constant and close contact with senior representatives from the Government of Ontario and the LCBO. Through both media and direct conversations, we are communicating to government, the LCBO, and the public the scope of the challenges and frustrations the strike is causing for your business.  

During the lead up and throughout the strike to date, we have continued to advocate for a contingency plan that is responsive to the needs of restaurant and bar owners. While there has been responsiveness related to online ordering processes, we have relayed the challenges you are facing with finding available inventory on the LCBO website. We are also ensuring that the government understands the risks to your business if the strike persists for an extended period, calling on the province to ensure their top priority is to flow products to bars and restaurants to protect your businesses and the wellbeing of those who depend on your operation for their livelihoods.     

To support our discussions with the LCBO and key government officials, we have prepared a survey to help us represent the impact of the strike on your businesses. Your input is incredibly valuable to our discussions. Please take a few moments to fill out the Impact of LCBO Strike Survey. 

Restaurants Canada will continue to communicate with you and on your behalf throughout the strike. In the meantime, you can follow LCBO updates on the situation here.  

FOLLOW THE STORY: 

Northwest Territories: Government Announces Increase to Minimum Wage 

Effective September 1, 2024, the minimum wage will increase from $16.05 per hour to $16.70 per hour. For more information, see here.  

Northwest Territories: Have Your Say on Proposed Fire Prevention Act Regulations Changes  

You can provide input by emailing WhatWeHeard-MACA@gov.nt.ca by August 6, 2024. You can also learn more here.  

Manitoba: Announcing 2024 Between the Buns – Manitoba’s Local Burger Competition 

Between the Buns will run between Sept 1-8th.  This new event is locally run, creating a great opportunity for your brand to be associated with a Made in Manitoba Event. Please visit the event website or reach out to Shaun Jeffrey (shaunj@mrfa.mb.ca) or Kim Riddolls (kimr@mrfa.mb.ca) from the Manitoba Restaurant & Food Services Association to get involved.   

Manitoba: Security Rebate Program for Homeowners, Renters and Small Businesses is Now Available 

Applications are open for the Manitoba government’s new security rebate program, which offers a $300 rebate to homeowners, renters and small business owners for purchasing security equipment.  See here to learn more.  

While this is a welcomed initiative, MRFA and Restaurants Canada will continue to push the Government of Manitoba to significantly grow the size of the rebate for your business.   

Manitoba: Government Taking Action to Fight Retail and Violent Crime in Winnipeg 

Restaurants Canada and MRFA have been working together to push the Government of Manitoba to take action to address violent crime that poses a threat to your businesses, employees, and patrons.   

Manitoba has announced a $1.16M partnership with the Winnipeg Police Service that will target retail crime, as well as its Downtown Safety Action Plan. 

While these are positive and welcomed steps, we will continue to press the province to expand funding to businesses to help with your security costs.  

WESTERN UPDATE

From Mark von Schellwitz | Vice-President, Western Canada

Alberta: Restaurants Canada at the 2024 Calgary Stampede 

Restaurants Canada was once again on site at the 2024 Calgary Stampede, which continues to be the “Greatest Outdoor Show on Earth.” The Stampede attracts politicians from all levels of government from across Canada, and we used the opportunity to meet with several federal MPs, provincial MLAs, and Ministers including Alberta Premier Daniel Smith, to discuss many of Restaurants Canada’s federal and provincial policy priorities.  

From left to right: Restaurants Canada VP, Western Canada Mark von Schellwitz with Alberta Premier Danielle Smith, Restaurants Canada VP, Western Canada Mark von Schellwitz with Calgary Centre MP Greg McLean, Restaurants Canada VP, Western Canada Mark von Schellwitz with Muhammad Yaseen, Alberta Minister of Immigration and Multiculturalism 

It was great to see thousands of visitors in their western attire and cowboy hats filling up Calgary’s restaurants and bars and participating in the 1,200 related receptions, events, and pancake breakfasts taking place over the 10-day Stampede. The Stampede is a boon to Calgary’s hospitality industry attracting 138,000 tourists and generating $227 million in revenue for local Calgary businesses. 

BC: Single-Use & Plastic Waste Prevention Regulation  

On July 15th, BC members are reminded that Parts 2 and 3 and Section 11 of the Single-Use and Plastic Waste Prevention Regulation dealing with shopping bags, food service ware, and oxo-degradable plastics will be implemented.  

Most provisions of the regulation were implemented on December 20, 2023; however, the regulation provided industry with an additional six months to prepare for the implementation of these regulation provisions. Effective July 15th, members will be required to charge guests a $.25 fee for paper bags larger than 5cm by 20cm and a $2.00 fee for reusable bags. Using food ware made with hard-to-recycle plastics such as Styrofoam and packaging made with oxo-degradable plastics will also be prohibited. For more information, please reference the regulation implementation info sheet.   

If you haven’t already, we recommend you review the Q2 2024 edition of The Quarterly Canadian Restaurant Intelligence Report from Restaurants Canada Intelligence. The Quarterly, presented by Uber Eats, represents a significant investment of time and love on the industry’s behalf and is designed to provide operators and decision makers with the most current research and analysis to help drive restaurant sector business forward. Members can access The Quarterly here.  

Yours in an unwavering focus on the long-term success and profitability of Canadian foodservice, 

Kelly Higginson