With food costs continuing to rise beyond general inflation, provincial and federal governments need to focus on liberalizing the movement of food products between provinces, says Restaurants Canada.
Last week, the Committee of Internal Trade Ministers announced they had reached a new Canadian Mutual Recognition Agreement on the Sale of Goods, but it excluded all food and alcohol products, added the national organization.
“We applaud the provincial and federal governments for the progress they have made on internal trade over the past year, but food products continue to be excluded from interprovincial agreements. When food costs rise faster than other prices, restaurants have to contend with a higher cost of doing business and lower customer demand, which is leading many to raise menu prices, cut shifts or hours of operation, or even consider closing,” said Kelly Higginson, President and CEO of Restaurants Canada.
Restaurants Canada said food inflation has outpaced general inflation for the past nine consecutive months, according to Statistics Canada’s latest Consumer Price Index. Restaurants Canada’s own data shows that food costs have gone up 12% over the past two years for foodservice businesses, putting their profitability at risk. At the same time, 75% of Canadians are eating out less often due to the rising cost of living.
Restaurants Canada said it has been advocating for interprovincial trade barriers to be lifted to improve the flow of goods and services across the country, including by:
- Modernizing the Excise Act;
- Harmonizing Canada Food Inspection Agency (CFIA) regulations with provincial counterparts;
- Enhancing interprovincial labour mobility; and
- Reducing the packaging and disposable goods compliance gap.
“Canadians need to see more from all governments on everyday affordability. Modernizing trade and reducing unnecessary barriers around food products is one low-cost way they can address rising food prices for consumers and businesses,” said Higginson.
Restaurants Canada is a national, not-for-profit association advancing Canada’s diverse and dynamic foodservice industry. Restaurants are a $124 billion industry employing nearly 1.2 million Canadians and the number one source of first-time jobs in Canada.
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