Restaurants Canada says it is encouraged by this week’s announcement by the federal government of an enhanced GST credit to deal with food affordability, and new investments in Canada’s food production and supply chain infrastructure.
“This announcement is a move in the right direction in taking action to address the real challenges that Canadians are facing with escalating food costs, an issue we have been actively discussing with the federal government and parliamentarians over the past year,” explained Kelly Higginson, President and CEO, Restaurants Canada.
“Millions of Canadians rely on restaurants daily for some of their meals, but restaurants are also one of the first discretionary spending categories that Canadians cut from their budgets when they are struggling. In a 2025 survey, 75% of Canadians told us they are reducing their restaurant visits due to cost-of-living increases. As a result, 41% of restaurants are operating at a loss or just breaking even, up from 12% in 2019.
“The foodservice industry is the fourth-largest private sector employer in the country, with nearly 1.2 million employees, including 500,000 youth. Addressing food affordability helps to strengthen restaurants’ ability to hire and train the next generation of workers and support the prosperity of every community across the country.
“While the GST credit increase will help the hardest-hit Canadians afford daily essentials, including meals purchased from restaurants, we will continue to work with the government on broader affordability measures, including exempting all food from GST, as it did during the 2025 GST holiday.”
Earlier this week, the federal government said the global landscape is rapidly changing, leaving economies, businesses, and workers under a cloud of uncertainty.
“In response, Canada’s new government is focused on what we can control: building a stronger economy to make life more affordable for Canadians. To that end, we are securing new trade and investment partnerships abroad and building our strength at home – to create good career opportunities with higher wages for Canadians,” it said.
“Our plan is moving Canada’s economy from reliance to resilience, though some of the biggest long-term payoffs of this transformation will take time to be felt. To ensure Canadians have the support they need right now, the government has introduced a series of new measures to bring down costs – including cutting taxes for 22 million Canadians, supercharging homebuilding, and protecting and expanding vital social programs.”
Prime Minister Mark Carney introduced new measures to make groceries and other essentials more affordable:
1. Putting more money back in Canadians’ pockets
- The government is introducing the new Canada Groceries and Essentials Benefit – formerly the Goods and Services Tax (GST) Credit. We are increasing its amount by 25% for five years beginning in July 2026.
- In addition to that, we are providing a one-time payment, equivalent to a 50% increase this year.
- Combined, this means that a family of four will receive up to $1,890 this year, and about $1,400 a year for the next four years; and a single person will receive up to $950 this year, and about $700 a year for the next four years.
- The new Canada Groceries and Essentials Benefit will provide additional, significant support for more than 12 million Canadians.
2. Tackling food insecurity, supporting producers, and strengthening supply chains
- The government is setting aside $500 million from the Strategic Response Fund to help businesses address the costs of supply chain disruptions without passing those costs on to Canadians at the checkout line.
- For the same purpose, the government will create a $150 million Food Security Fund under the existing Regional Tariff Response Initiative for small and medium enterprises and the organisations that support them.
- To lower the cost of food production, we are introducing immediate expensing for greenhouse buildings. This allows producers to fully write off greenhouses acquired on or after November 4, 2025, and that become available for use before 2030. This measure supports increased domestic supply and investment in food production over the medium-term.
- To ease immediate pressures with food banks, the government is providing $20 million to the Local Food Infrastructure Fund. This supports food banks and other national, regional, and local organisations to deliver more nutritious food to families in need.
- To tackle the root causes of food insecurity, we are developing a National Food Security Strategy – one that strengthens domestic food production and improves access to affordable, nutritious food.
- This strategy will also include measures to implement unit price labelling and support the work of the Competition Bureau in monitoring and enforcing competition in the market, including food supply chains.
“One of the best things about Canada is that you don’t have to be born rich to succeed. To protect that fundamental value, we are building a stronger economy that benefits everyone – creating thousands of new career opportunities with better wages. We’re also bringing in new measures to lower costs and make sure Canadians have the support they need now. We’re building Canada strong, because we’re strongest when we look after each other and when we ensure everyone has the chance to get ahead,” said Carney.
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