The federal government could add more than 25,000 youth jobs in the foodservice industry by eliminating the GST from restaurant meals, according to analysis by Restaurants Canada. The foodservice industry already employs more than 500,000 youth, representing one in five youth jobs in the country.
“Restaurants are the number one source of first-time jobs for Canadians,” said Kelly Higginson, President and CEO of Restaurants Canada.
“In fact, young people make up over 40% of foodservice workers. Our industry is perfectly positioned to help alleviate the youth employment crisis, and the federal government can facilitate that by permanently removing the GST from prepared meals, like it did at the start of the year.
“Our industry is a part of the solution to the youth employment crisis, but we need the federal government to tip the scales in favour of Canadians quality of day to day living and boost the sector’s viability. We’re looking for concrete solutions from them on affordability and tax relief in the upcoming federal budget.”
Restaurants Canada has been advocating for a permanent removal of the GST from all food to improve affordability for Canadians and boost restaurant sales.
To date, over 7,500 Canadians have signed Restaurants Canada’s petition calling for the removal of the GST from all food at foodisfood.ca.
The GST/HST holiday, which ran from December 15, 2024, to February 15, 2025, led to the creation of 24,000 new foodservice jobs, more than the previous 12 months combined. While the industry shed some of those jobs after the holiday, overall, it has added 23,600 jobs in the first nine months of 2025, more than the 21,200 jobs created across the broader private sector, said the national organization.
Based on data from the GST/HST holiday and economic modeling, Restaurants Canada estimates that a permanent tax exemption on prepared food would lead to:
- 64,300 new foodservice jobs (40% of which are likely to go to people under 25)
- 15,685 additional spinoff jobs in related industries
- 2,680 new restaurants
- $5.4 billion in tax savings to consumers
- $1.5 billion in additional tax revenue and EI savings for government
Additionally, every dollar in foodservice sales generates $2.30 in the wider economy, compared to a $1.90 average output for all other industries, meaning that an investment in the foodservice industry would create significant returns for the Canadian economy at large, it said.
Due to the affordability crisis facing Canadians and the lack of discretionary spending 75% of Canadians say they are dining out less frequently than they used to due to the rising cost of living, added Restaurants Canada.
By age:
81% of those aged 18 to 34
70% of those aged 55+
By household income:
86% earning $50,000/year.
70% earning $100,000 or more.
Source: Angus Reid, survey conducted June 2025
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