Permanently removing GST from restaurant meals can strengthen our industry
The two-month GST/HST break gave the industry a boost it needed, and not only in increased visits. New data show it has also created jobs. The foodservice sector reached its highest employment level since the early days of the pandemic in January, according to the latest Statistics Canada Labour Force Survey, with the industry adding 34,600 jobs since November 2024. A staggering one in six new jobs created in Canada is in the food-service industry.
The introduction of the GST in 1991 was devastating to the restaurant industry. An Ernst and Young report found that real restaurant sales dropped 11 per cent that year, much of that a direct result of the new tax. The food-service industry was forced to lay off 46,000 Canadians that year. Job creation in the industry slowed from an average of 31,135 jobs a year between 1976 and 1990 to just 17,387 between 1992 and 2006.
For the full article click here to check out Restaurants Canada’s latest Op-ed in the Globe and Mail, or download the article here.
As the Chief Economist and Vice President of Research for Restaurants Canada, Chris Elliott manages and produces a comprehensive research program that has made Restaurants Canada a leading source of information for and about Canada’s $114-billion foodservice industry. Chris tracks and analyzes key industry and economic indicators and translates them into member reports and publications. He also provides research to support Restaurants Canada’s lobbying efforts on issues that affect foodservice operators – from payroll taxes to food costs.
Chris has worked with Restaurants Canada for over 20 years, has a Bachelor of Arts and Master Degree in Economics and specializes in economic modelling and forecasting.
