Toronto, May 23, 2025 (GLOBE NEWSWIRE) — Restaurants Canada is pleased to see affordability and internal trade at the top of the list of priorities in Prime Minister Carney’s Mandate Letter released ahead of the Speech from the Throne.
As part of its mission to make life more affordable for Canadians, we urge the government to exempt all food from GST/HST permanently. The recent GST/HST holiday increased restaurant spending by 8.3%, created 24,000 foodservice jobs, decreased bankruptcies in our sector by 50% year-over-year and helped to increase the quality of day-to-day life for Canadians.
One of the first things Canadians cut out of their budgets during times of economic instability is restaurant spending. As a result, 53% of restaurants are operating at a loss or just breaking even, up from just 12% pre-pandemic. Making all food permanently tax-free would reduce the cost of living for hard working Canadians, protect jobs and stimulate the economy, at a time when these things are desperately needed.
Removing interprovincial trade barriers is also a major priority for the foodservice industry. It would help the foodservice industry diversify their supply chains, purchase more Canadian products and benefit from a more competitive marketplace. It could also add significantly to Canada’s GDP and productivity.
We are also pleased that the new government is looking at strategies to attract the best foreign talent to Canada, but that strategy must include the foodservice industry. Canada has benefited immensely from the diversity and international talent that shape the restaurant scene across the country. Those workers, both front- and back-of-house, should not be penalized and sent home after making a life for themselves in their communities. We urge the government to be flexible, especially when it comes to foreign foodservice workers who are already here on work visas and applying for permanent residency in remote, rural and tourist areas of Canada.
- Kelly Higginson, President and CEO, Restaurants Canada
About Restaurants Canada
Restaurants Canada is a national, not-for-profit association advancing Canada’s diverse and dynamic foodservice industry. Restaurants are a $120 billion industry employing nearly 1.2 million Canadians and is the number one source of first-time jobs in Canada.
CONTACT: Milena Stanoeva Restaurants Canada 6479211758 media@restaurantscanada.org
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