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Restaurants

Federal Government Could Create 25,000 Youth Jobs in Foodservice Industry by Eliminating GST on Restaurant Meals

Strategic Insights

— 1 min read

Analysis by Restaurants Canada estimates that permanently removing the GST from restaurant meals could create over 25,000 new jobs for youth in the foodservice industry. The current industry employs over 500,000 youth, who represent one in five youth jobs in the country. Restaurants Canada's President and CEO, Kelly Higginson, emphasizes that restaurants are the primary source of first-time jobs for Canadians, with young people making up over 40% of foodservice workers.

Key Takeaways:

  • The GST/HST holiday in 2024-2025 led to the creation of 24,000 new foodservice jobs, exceeding the previous 12 months combined.
  • The industry retained some of those jobs after the holiday, adding 23,600 jobs in the first nine months of 2025, outpacing the 21,200 jobs created in the broader private sector.
  • Restaurants Canada estimates that a permanent tax exemption on prepared food would lead to:

+ 64,300 new foodservice jobs (40% likely to go to people under 25).

+ 15,685 additional spinoff jobs in related industries.

+ 2,680 new restaurants.

+ $5.4 billion in tax savings to consumers.

+ $1.5 billion in additional tax revenue and EI savings for government.

  • Every dollar in foodservice sales generates $2.30 in the wider economy, compared to a $1.90 average output for all other industries.
  • The foodservice industry faces an uncertain outlook due to the affordability crisis and lack of discretionary spending. 75% of Canadians say they are dining out less frequently due to rising costs.

Statistics:

  • 24,000 new foodservice jobs created during the GST/HST holiday (2024-2025).
  • 23,600 new jobs added in the foodservice industry in the first nine months of 2025.
  • 21,200 jobs created in the broader private sector in the first nine months of 2025.
  • 64,300 estimated new foodservice jobs with permanent tax exemption on prepared food.
  • 15,685 estimated additional spinoff jobs in related industries.
  • 2,680 estimated new restaurants with permanent tax exemption on prepared food.
  • $5.4 billion estimated tax savings to consumers with permanent tax exemption on prepared food.
  • $1.5 billion estimated additional tax revenue and EI savings for government with permanent tax exemption on prepared food.

Sources:

  • Restaurants Canada, analysis on GST exemption from restaurant meals
  • Restaurants Canada, President and CEO Kelly Higginson quoted in the article
  • Angus Reid, survey conducted June 2025
  • Restaurants Canada, petition calling for removal of GST from all food

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