Restaurants Canada disappointed with federal fall economic statement
By Canadian PizzaNews Business and Operations Finance
Ottawa – Restaurants Canada said the federal government’s 2023 Fall Economic Statement has missed an opportunity to implement sector-specific support for the restaurant industry, which was the hardest hit by the pandemic. The industry does not want a handout, but rather they need more time for recovery and without more government support, the food-service industry is running out of runway, the association said.
Restaurants Canada has been advocating for measures that will support bottom-line growth in the industry, including the following:
- Revisit the CEBA repayment plan by extending the interest-free period by 12 months.
- Allow for restaurant meals to be a deductible business expense, which will increase patronage and traffic for other businesses in downtown cores and community hubs across Canada.
- Maintain the cap of the Alcohol Excise Tax escalator at two per cent to help reduce the alarming rate at which the operating costs are rising.
- Start a pilot for a dedicated immigration stream for the hospitality industry.
While the food-service industry has achieved remarkable growth, forecasted to reach $110B in 2023, this growth has not translated into bottom-line growth for most foodservice businesses, with 51 per cent operating at a loss or barely breaking even, compared to just 12 per cent pre-pandemic operations, Restaurants Canada said, noting it will continue to work in collaboration with the Government of Canada to promote recommendations that render additional gains for food-service operations across Canada.
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