TORONTO, May 1, 2014 /CNW/ - Restaurants Canada is disappointed the
Ontario government missed an opportunity to help the restaurant
industry and thereby improve Ontario's economy. The industry has been
harmed by the government's increased regulatory burden and high
beverage alcohol prices.
"We were looking at this budget for a sign that this government
understands the needs of our industry," said James Rilett, Restaurants
Canada's Ontario Vice President. "What we got was more of the same, and
a complete dismissal of our recommendations."
Restaurants Canada had previously asked the government to address the
beverage alcohol system that forces restaurants, bars and pubs to pay
more than the public for beverage alcohol products. For example, the
existing system allows breweries to charge licensees 30 per cent more
than the public for cases of beer.
Restaurants Canada was also looking for evidence the government would
address the worsening business climate for the industry. Statistics
Canada data shows the foodservice industry in Ontario is dead last in
terms of profitability at 2.8 per cent, when compared to its
counterparts in other provinces.
"A 2.8 per cent margin does not leave much room for error," said Rilett.
"That profit margin is quickly eroded by minimum wage increases, new
regulatory costs and decreased consumer confidence - none of which was
Ontario's restaurant industry accounts for $25 billion representing 3.7
per cent of the province's GDP. Our members employ over 425,000
Ontarians in every town across the province.
Restaurants Canada (formerly the Canadian Restaurant and Foodservices
Association) is a national association comprising 30,000 businesses in
every segment of the foodservice industry, including restaurants, bars,
caterers, institutions and their suppliers. Through advocacy, research,
and member programs and services, Restaurants Canada is dedicated to
helping its members in every community grow and prosper.
Canada's restaurant industry directly employs more than 1.1 million
Canadians, contributes $68 billion a year to the Canadian economy, and
serves more than 18 million customers every day.
SOURCE: Restaurants Canada
For further information:
James Rilett, Vice President, Ontario
1-800-387-5649 ext 4241 / Cell 416-738-9546 or
Prasanthi Vasanthakumar, Communications Specialist
1-800-387-5649 ext 4254 or