Restaurants Canada’s response to Federal Budget 2024
April 16 2024 - 4:50PM
Restaurants Canada was pleased to see some positive measures in the
2024 federal budget to support Canada’s foodservice sector.
Confirming a 2% cap on the alcohol excise tax as Restaurants Canada
advocated for along with other associations and our ask that
government address the lack of movement on small business rebate
program. The carbon tax rebate that will be directly returned to
small and medium sized business will be well received by the
restaurant industry. Items in the budget related to housing and
rental support will also be well received by operators and
supportive to our employees. We look forward to more details to
come on these policies.
Foodservice in Canada is a $114 billion-dollar industry and the
4th largest private employer in the country with $0.96 cents of
every dollar spent in a restaurant, going back into the community
and the economy. As an industry that has traditionally operated on
slim margins to ensure value for Canadians, these last few years of
inflationary pressures and labour challenges have significantly
increased the cost of operating a restaurant – leading to 62% of
restaurant operating at a loss or barely breaking even compared to
12% pre-pandemic.
“It is imperative that our government’s labour market and
workforce strategies work for the unique needs and challenges of
small businesses,” said Kelly Higginson, President and CEO of
Restaurants Canada.
Policies that are good for restaurants are good for Canadian
communities. Each and everyday across Canada, restaurants nourish
our communities by feeding us, providing thousands of jobs, and
serving as a place to gather and bond with our friends, family and
colleagues. While the announcements made today in the federal
budget are a starting place, the lack of serious labour strategies
is concerning. The reality is that when new Canadians start working
in the foodservice industry, many choose to make it their career
with over 50% of restaurants in our country owned and operated by
entrepreneurs who came here as immigrants. The entrepreneurial
spirit of immigrants in the restaurant industry further emphasizes
the long-term benefits of immigration for both the economy and
bringing vibrancy to local communities.
"Immigration is essential to Canada's growth and
prosperity. As an industry with 78,000 job vacancies, we need
to see policies that are tailored to the industry that support
connecting newcomers who want an opportunity to find employment in
the restaurant sector,” said Higginson.
Creating immigration programs to match unemployed newcomers with
job vacancies in the restaurant will increase opportunities for
newcomers to build a valuable career in foodservice. Not only will
it create economic opportunities for newcomers to this country, but
it will help keep our favourite restaurants open and thriving for
many years to come.
The economy and our sector continue to face significant
headwinds and we are committed to working with governments at all
levels to share data and insights to help them understand the dire
situation facing our industry, what we need, and how they can help
position restaurants for recovery and growth in the future.
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Elisabeth Guthrie
Restaurants Canada
226-349-0495
media@restaurantscanada.org