Restaurants Canada: GST/HST Holiday Fuels Job Growth in Foodservice Sector

Canada’s Foodservice Sector Defies Economic headwinds with Jobs Surge

Despite ongoing economic uncertainty, Canada’s foodservice industry is defying expectations with a surge in employment. According to Statistics Canada’s Labor Force Survey, the sector added a remarkable 34,600 jobs in November 2024, reaching a record high of 1,175,900 jobs as the start of the pandemic in January 2025. This represents a significant 16% share of all new jobs created in Canada during that period.

This positive trend is largely attributed to the ongoing Goods and Services Tax/harmonized Sales Tax (GST/HST) holiday, a measure implemented to provide relief to Canadians facing affordability challenges. “The GST/HST holiday has been a vital support for our industry during these arduous times,” said Kelly Higginson, President and CEO of Restaurants Canada, the national association representing the foodservice industry. “We are Canada’s fourth-largest private-sector employer and one of the first to experience job losses in times of economic strain. Simply put, the tax holiday is creating employment in communities across Canada.”

Further highlighting the holiday’s impact, January 2025 witnessed a staggering 67,500 more jobs compared to January 2024, marking a 6.1% increase. This growth significantly outpaces the 2% increase observed across all industries.

However, while employment figures paint a positive picture, Restaurants Canada emphasizes the ongoing challenges faced by the sector. Over half (53%) of restaurants are currently operating at a loss or breaking even, according to the association, primarily due to reduced consumer spending. This situation contrasts sharply with the 12% operating at a loss pre-pandemic.

Higginson underscores the urgent need for continued tax relief, stating, “Canadians are already struggling to afford the essentials. If U.S. tariffs come into effect, we’re looking at even more increases to the cost of living, including food. Government can provide some stability and relief to Canadians and the restaurant industry by keeping all food tax-free.”

Restaurants Canada advocates for a permanent exemption of all food from GST/HST or, at the very least, an extension of the tax relief until the ongoing tariff dispute with the United States is resolved.

The surge in employment within the foodservice sector offers a glimmer of hope amidst economic uncertainty.Though, it’s crucial for policymakers to recognise the ongoing challenges facing restaurants and consider long-term solutions to ensure the sector’s continued recovery and growth.

Canada’s foodservice Sector: A job Surge Amidst Economic Uncertainty

Canada’s foodservice industry is defying economic headwinds with a surprising surge in employment. Reaching its highest level since the pandemic began, the sector has sparked debate about its long-term sustainability. To gain deeper insights, we spoke with Emily Chen, an Economic Analyst with Restaurants Canada.

A surprising Trend Amidst Economic Uncertainty

The recent surge in foodservice jobs has been remarkable given the broader economic climate. Emily Chen believes the Goods and Services Tax/Harmonized Sales Tax (GST/HST) holiday has played a crucial role. “By easing the financial burden on consumers, it’s encouraged people to eat out more, leading to increased demand for restaurant staff,” she explained. “Additionally, the Canadian public showed a strong desire to support local businesses, which has benefited many restaurants struggling to recover from pandemic-related setbacks.”

Long-Term Outlook: Challenges and Opportunities

While the job surge is encouraging, it’s critically importent to remember that the current situation is fragile. Restaurants Canada has highlighted that many restaurants are still operating at a loss. Addressing this issue is crucial for long-term sustainability. “To ensure long-term sustainability, we need sustained government support, perhaps through further tax relief or strategies to help manage input costs,” Chen stated.

A Call to Action: What Can Be Done?

The future of Canada’s foodservice sector hinges on addressing these challenges head-on. “The government plays a critical role in supporting the industry’s growth and resilience,” Chen emphasized. “Through targeted policies and initiatives, we can create a more supportive environment for restaurants to thrive and continue contributing to Canada’s economic prosperity.”

These timely measures could include:

• Tax Relief: Extending or expanding tax breaks for restaurants, such as those related to GST/HST or property taxes, could provide much-needed financial relief and encourage investment.
• Input Cost management: Exploring strategies to help manage rising food and labor costs, such as negotiating bulk purchasing agreements or providing training subsidies for employees, could improve profitability.
• Marketing and Promotion: Investing in marketing campaigns to promote dining out and support local restaurants would stimulate demand and boost the industry.

By taking proactive steps, the government can help ensure that Canada’s vibrant foodservice sector continues to create jobs, drive economic growth, and contribute to the well-being of Canadians.

strengthening Canada’s Foodservice Industry: A Call for collaboration

The Canadian foodservice industry is experiencing a resurgence, fueled by a recent surge in job creation. however, this positive momentum hinges on continued support from both government and consumers. Experts emphasize the critical role of collaboration in ensuring the industry’s long-term success.

Government support: Creating a Stable Environment

Stable and predictable business environments are crucial for any industry to thrive.Emily Chen,a noted industry expert,highlights the importance of government policies that address cost pressures and incentivize investment in the foodservice sector. “The government can create a more stable and predictable business environment through policies that address cost pressures and promote investment in the sector,” states Chen.

Consumer Action: Choosing Local, Supporting Takeout

Consumers also play a vital role in supporting the industry. When Canadians choose to dine at local restaurants, utilize takeout and delivery options, and advocate for policies that benefit the foodservice sector, they directly contribute to its growth and sustainability.

A Collaborative Future

the path ahead may present challenges, but the recent job growth signifies the resilience of Canada’s foodservice industry. By working together,government and consumers can ensure that the industry continues to thrive,contributing significantly to the Canadian economy. Supporting local businesses, advocating for sensible policies, and creating a welcoming environment for dining are all actions that can make a tangible difference.

How can the Canadian government create policies to ensure the long-term sustainability of the foodservice sector amidst economic uncertainty?

CanadaS Foodservice Sector: A Job Surge Amidst Economic Uncertainty

Canada’s foodservice industry is defying economic headwinds with a surprising surge in employment. Reaching its highest level as the pandemic began,the sector has sparked debate about its long-term sustainability. To gain deeper insights, we spoke with Emily Chen, an Economic Analyst with Restaurants Canada.

A surprising Trend Amidst Economic Uncertainty

The recent surge in foodservice jobs has been remarkable given the broader economic climate. Emily Chen believes the Goods and Services Tax/Harmonized Sales Tax (GST/HST) holiday has played a crucial role. “By easing the financial burden on consumers, it’s encouraged peopel to eat out more, leading to increased demand for resturant staff,” she explained. “Additionally, the Canadian public showed a strong desire to support local businesses, which has benefited many restaurants struggling to recover from pandemic-related setbacks.”

Long-Term Outlook: challenges and Opportunities

While the job surge is encouraging,it’s critically importent to remember that the current situation is fragile. Restaurants Canada has highlighted that many restaurants are still operating at a loss. Addressing this issue is crucial for long-term sustainability. “To ensure long-term sustainability, we need sustained government support, perhaps through further tax relief or strategies to help manage input costs,” Chen stated.

A Call to Action: What Can Be Done?

The future of Canada’s foodservice sector hinges on addressing these challenges head-on. “The government plays a critical role in supporting the industry’s growth and resilience,” Chen emphasized. “Through targeted policies and initiatives, we can create a more supportive habitat for restaurants to thrive and continue contributing to Canada’s economic prosperity.”

So,what steps can Canadians take to ensure the continued success of our local restaurants?

These timely measures could include:

• Tax Relief: Extending or expanding tax breaks for restaurants,such as those related to GST/HST or property taxes,could provide much-needed financial relief and encourage investment.
• input Cost management: Exploring strategies to help manage rising food and labor costs, such as negotiating bulk purchasing agreements or providing training subsidies for employees, could improve profitability.
• Marketing and Promotion: Investing in marketing campaigns to promote dining out and support local restaurants would stimulate demand and boost the industry.

By taking proactive steps, the government can definitely help ensure that Canada’s vibrant foodservice sector continues to create jobs, drive economic growth, and contribute to the well-being of Canadians.