Amid Rising Costs, Thousands of Canadian Restaurants Face Closure
A recent study by Dalhousie University revealed that an alarming 7,000 restaurants closed their doors across Canada in the past year, with another 4,000 establishments at risk of shutting down in 2026, particularly in Ontario.
The restaurant industry is feeling the squeeze from various challenges. Sylvain Charlebois, a professor at Dalhousie University, pointed out the escalating input and labor costs, along with the impact of changes to the temporary workers program.
For Toronto restaurateur Richard Pinto, the financial strains are hitting close to home. As the owner of St Matthew’s BBQ Chicken, Pinto shared how soaring costs have impacted every aspect of his business, from food to packaging materials.
Running a family-run restaurant like St Matthew’s BBQ Chicken for over 30 years hasn’t been without hurdles. Pinto emphasized the resilience required to navigate the industry’s unpredictable landscape.
The Ontario Restaurant, Hotel and Motel Association (ORHMA) highlighted the ongoing struggles faced by businesses in the aftermath of the pandemic, especially in Ontario where a significant number of restaurants are concentrated.
Concerns have also been raised by Toronto’s business improvement areas, underlining the vital role of restaurants in driving tourism and the potential repercussions of their closures on the local economy.
Both industry representatives and business leaders are urging government intervention, advocating for targeted tax relief and supportive policies to safeguard the survival of small businesses.
As the industry braces for further closures, the impending changes could forever transform Toronto’s culinary scene and communities.
Keyphrase: Canadian restaurant closures