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Budget 2025: Mixed Reactions from Foodservice Industry as Workforce Concerns Persist

While the industry welcomes government commitments to public safety, Restaurants Canada is left wanting more on immigration and affordability measures to tackle workforce shortages and rising costs.

In this image there is a super market, in that super market there are groceries.
In this image there is a super market, in that super market there are groceries.

Budget 2025: Mixed Reactions from Foodservice Industry as Workforce Concerns Persist

Budget 2025 has been met with mixed reactions from the foodservice industry, with Restaurants Canada expressing both gratitude and disappointment. While the government has committed to boosting public safety, the industry's concerns regarding immigration and workforce access remain largely unaddressed.

Restaurants Canada, representing over 30,000 foodservice businesses, had proposed several measures to ease the industry's burden. Notably, they suggested exempting all food from GST, which they estimated could create up to 80,000 jobs, save consumers $5.4 billion in taxes, and generate an additional $1.5 billion in tax revenue and EI savings. However, no public information indicates that these proposals have been adopted in Budget 2025.

The industry is also facing pressure from rising input costs and reduced consumer spending, as highlighted by Kelly Higginson, President and CEO of Restaurants Canada. Despite these challenges, the government's budget lacks sufficient measures to improve everyday affordability for Canadians, according to Restaurants Canada.

The foodservice industry, employing over 1.2 million workers, is Canada's fourth largest private sector employer. Restaurants Canada is concerned about the reduction in temporary resident admissions, which could impact the industry's ability to fill hard-to-staff roles. While the government has committed to improving public safety, the industry awaits specific measures to address its workforce access concerns.

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