CFIB calls Budget 2026 a disappointment for small businesses, while Restaurants Canada highlights investment incentives, tax simplification and affordability measures that could benefit the restaurant industry.
Statistics Canada reports restaurant and foodservice sales rose 0.3% to $8.9 billion in August, despite ongoing profitability pressures across the industry.
Restaurants Canada and the Retail Council of Canada welcome the federal government’s proposed Productivity Mega Deduction, saying it could spur investment in equipment, technology and infrastructure.
Gas costs have risen by an average of 46% since December 2025, contributing to higher food and transportation costs and supplier fuel surcharges, reported by 86% of restaurants.
Temporary Foreign Workers represent just 3% of the foodservice workforce and are a last resort for employers, filling critical gaps in communities with aging populations, shrinking workforces and declining youth participation rates.
44 per cent of restaurants were in that position as of November 2025, a sharp increase from pre-pandemic norms when roughly 10 to 12 per cent struggled to turn a profit.
The appointment took effect recently, according to the organization, and comes as Restaurants Canada continues to position its government relations and public affairs function as a core part of its work on behalf of the foodservice industry.
There are geographic areas and skill gaps that make it necessary for some foodservice businesses to recruit temporary foreign workers, says Restaurants Canada.
Canadians are expecting more value for their dollars as they grapple with affordability and that’s reflected in many of the trends highlighted in this report, says Restaurants Canada.
Restaurants Canada expects annual commercial foodservice sales to contract between 0.4% and 1.5% in 2025 and between 0.6% and 1.4% in 2026, depending on how the tariff dispute with the U.S. evolves.