Sustainability Policies That Will Impact Canadian Restaurants In 2026

Thomas Campbell

November 26th, 2025

The sustainability rulebook for Canadian restaurants is getting a serious update in 2026. Based on the Restaurants Canada Sustainability Policy Tracker, operators will be navigating new requirements around chemicals in packaging, greenwashing, plastics reporting, organics diversion, and single-use items at the federal, provincial, and municipal levels.

Even if you never see your restaurant’s name on a government form, these policies will shape what you can buy, how you manage waste, and what you’re allowed to say in your marketing. Here’s what’s coming and how it’s likely to impact your operation.

Summary

PFAS chemicals in food packaging are under federal review and likely to face restrictions.
New greenwashing rules require restaurants to prove any environmental marketing claims.
Terms like “sustainable,” “eco-friendly,” or “compostable” must be backed by documentation.
The federal single-use plastics ban is fully implemented by late 2025, affecting bags, cutlery, and foodservice ware.
Provincial EPR programs (BC, ON, QC, NS) will increase costs for non-recyclable packaging.
More municipalities are introducing fees or bans on single-use cups, accessories, and containers.

“Forever chemicals” in food packaging are under the microscope

At the federal level, the government has already issued a Section 71 notice on PFAS (“forever chemicals”), requiring companies to report where and how these substances are being used in Canada. That data will be used to build a State of PFAS Report and Risk Management Approach, with consultations running into late 2025 and beyond.

What this means for restaurants in 2026:

Food packaging will change. Grease-resistant wrappers, boxes, and takeout containers that rely on PFAS are likely to be restricted over time. Your distributors may start switching lines or phasing out certain SKUs.
Prices and availability may shift. As suppliers reformulate packaging, you may see higher prices in the short term and longer lead times on “safer” alternatives.
Due diligence will matter. Chains and larger independents will increasingly be expected to ask their suppliers for information on PFAS and other chemicals of concern in food-contact materials.

Action for 2026: Start asking your packaging and chemical suppliers for documentation on PFAS and safer alternatives now, so you’re not scrambling when new rules or market shifts kick in.

Greenwashing rules will reshape your marketing claims

In 2025, the Competition Bureau released and finalized Environmental Claims Guidelines, setting expectations for what companies must do to back up claims like “eco-friendly,” “carbon neutral,” “zero waste,” or “100% compostable.”

For restaurants, 2026 will be the first full year operating under these new expectations:

Vague green claims are risky. Saying your restaurant is “sustainable” or “green” without clear, verifiable evidence can attract regulatory and reputational risk.
You need proof, not just good intentions. If you claim your packaging is compostable, you should have documentation showing it’s certified and accepted in local programs not just “it says compostable on the box.”
Carbon and climate claims will be scrutinized. Any “carbon neutral delivery” or “net-zero restaurant” messaging will need solid methodology and third-party evidence.

Action for 2026: Audit your website, menus, in-store signage, social media, and delivery apps for environmental claims. Either back them up with real evidence and numbers, or simplify the wording to focus on concrete actions (“we separate food waste,” “we’ve switched to reusable dine-in tableware,” etc.).

Plastics and packaging: more reporting and more responsibility

Plastics and packaging policy is shifting from feel-good campaigns to hard data and mandatory reporting. The key pieces:

Single-Use Plastics Prohibition Regulations (SUP ban). The federal rules banning many single-use plastic items (checkout bags, cutlery, stir sticks, certain foodservice ware, straws, and ring carriers) are fully phased in by December 20, 2025, including restrictions on manufacturing for export.
Federal Plastics Registry. This new federal reporting system requires companies that place plastic products on the market to report volumes and types of plastics. Phase 1 reporting (for consumer-facing packaging and some other categories) is due in 2025, and Phase 2 reporting, which covers more types of packaging and products supplied to service providers, comes due in late 2026.
Provincial EPR (extended producer responsibility) for packaging. Provinces like British Columbia, Ontario and Quebec already have packaging EPR systems. Nova Scotia’s residential recycling program for packaging and paper begins implementation in December 2025, with producer invoices starting in early 2026.

How this trickles down to restaurants:

Your suppliers will start charging environmental fees. Even if you’re not the “producer” on paper, distributors and brand owners will build EPR and plastics registry costs into their pricing.
Non-recyclable and hard-to-manage packaging will get more expensive. Over time, fees are designed to favour easily recyclable or reusable options.
Chains and large groups may be pulled directly into reporting. If you import private-label packaging or operate central commissaries, you may have direct obligations to track packaging weights and formats.

Action for 2026:

Standardize your packaging SKUs where possible.
Prefer formats that are widely accepted in local recycling programs.
Keep records of what you buy (material type, weights, quantities) so you can respond quickly if your brand, franchisor, or suppliers ask for data.

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Organic waste rules: more bans, more tracking, more cost

Organic waste is becoming a priority across provinces and cities, with a clear trend toward “no food in landfill” over the next decade. The tracker highlights several important moves:

New Brunswick Organic Waste Diversion Program (upcoming). A proposed program aims to cut organics going to landfill, with a diversion target starting at 20% of total landfill waste in the province. Implementation details are still being finalized, but foodservice will be in the mix.
Ontario Food and Organic Waste Policy Statement. Larger restaurants are already required to separate organics and may need to track and report how much food waste is generated, diverted, or donated in a year.
British Columbia and municipal organics bans. BC has ICI (industrial, commercial and institutional) organics requirements, and many regional districts and municipalities have their own rules on food scraps in garbage.
Municipal strategies like Edmonton’s ICI Waste Roadmap and Toronto’s circular economy work. Both cities are exploring stronger expectations for businesses around waste separation, diversion, and reporting.

What this means operationally in 2026:

Source separation will not be optional for larger sites. If you’re above certain thresholds (which vary by province/municipality), you’ll need dedicated bins, hauler contracts, and staff training for organics.
Waste data is becoming a KPI. Governments want numbers, not just “we have a green bin.” Expect increasing pressure to measure food waste volumes and diversion rates.
Costs may shift but can be managed. Organics collection adds a new cost line, but smart operators offset this by reducing over-production, tightening inventory, and increasing donation where possible.

Action for 2026:

Map your current waste streams (garbage, recycling, organics, grease, donations).
Talk to your landlord and hauler about organics and reporting expectations.
Train staff on separating food waste and track at least one basic metric (e.g., bins per week or weight of wasted prepared food).

Single-use items and reuse requirements at the local level

While the federal government sets the baseline, cities are going further on single-use reduction and reuse systems. The tracker flags:

British Columbia’s Single-Use and Plastic Waste Prevention Regulation, plus multiple municipal bylaws on bags, cups, and accessories.
Toronto’s single-use items and reuse work. The city is expanding its approach to single-use reduction and actively exploring reuse systems as part of its circular economy roadmap.
La Prairie (Quebec) and other municipalities introducing bylaws that ban the sale or supply of certain single-use items and encourage or require reusables in dine-in settings.

Common patterns emerging for 2026 and beyond:

Fees on disposable cups and containers. More cities are experimenting with mandatory fees or visible charges for certain single-use items.
Requirements for dine-in reusables. Expect rules that say: if a guest is eating on-site, they should get real plates, glasses and cutlery—not disposable packaging.
Support for reusable cup/container programs. Pilot projects and standards work (like CSA reuse standards) will make it easier for regulators to require or incentivize reuse systems.

Action for 2026:

Make sure dine-in orders default to reusable tableware.
Treat takeout packaging as a designed, intentional choice not an afterthought.
Consider joining or piloting reusable cup/container programs where available.

How Canadian restaurants can get ahead of 2026 sustainability rules

Instead of reacting to every new announcement, use 2025–26 as a planning window. A practical roadmap:

Create a simple compliance map. List where your locations operate (province + city). Note key themes for each: organics rules, packaging EPR, single-use bylaws, etc.
Audit your packaging and chemicals. Identify SKUs most likely to be affected: grease-resistant wrappers, compostable claims, single-use plastics, specialty cleaners. Ask suppliers for PFAS-free options and documentation for any “green” claims.
Tighten your environmental messaging. Remove vague claims and replace them with clear, verifiable statements (“we separate food waste,” “all dine-in orders are served on reusable tableware,” etc.). Keep a small evidence folder (PDFs, emails, invoices, certificates) backing up your key sustainability claims.
Invest in measurement and training. Track at least: waste pickups, organics volumes (even roughly), and packaging usage. Train staff on new sorting rules, reusables vs disposables, and how to answer guest questions about sustainability.
Use sustainability as a competitive advantage. Guests are increasingly conscious of waste and greenwashing. Clear, honest communication about what you are doing—without exaggeration can build trust and loyalty.

Conclusion

By 2026, sustainability policies in Canada will be less about slogans and more about measurable actions: what’s in your packaging, how you manage food and organic waste, and how you talk about your environmental impact.

Restaurants that start planning now working with suppliers, haulers, landlords, and internal teams won’t just stay compliant. They’ll be in a stronger position to control costs, build guest trust, and turn sustainability from a headache into a long-term advantage.

FAQ

Do I need to stop using all compostable packaging in 2026?

No. You can still use compostable packaging, but claims must be verified and accepted by your local waste system. Greenwashing rules make unsupported claims risky.reporting.

Is a cloud-based POS better than a traditional system?

Will every restaurant have to report plastics or packaging data?

Are dine-in restaurants required to switch completely to reusable tableware?

In many cities, yes reusables must be provided for dine-in customers. More municipalities are adopting these rules, so operators should plan for reusables if they haven’t already.

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