canadian restaurant legislature 2026

Legislative Changes That Will Impact Canadian Restaurants In 2026

January 9th, 2026

Canadian restaurants are heading into 2026 with a familiar challenge: margins are tight, and compliance is getting more complex. While there isn’t one single “restaurant bill” hitting every province on January 1, 2026, several changes and ongoing rules will meaningfully affect labour costs, hiring, tipping, alcohol pricing, and access to workers, especially for operators in Ontario and Québec.

Below is what to watch, what it means operationally, and how to prep without overhauling your entire business.

 Summary

  • Federal immigration targets may tighten restaurant hiring in 2026

  • Annual alcohol excise duty adjustments continue to pressure beverage margins

  • Ontario introduces strict job posting and hiring rules starting January 1, 2026

  • Ontario restaurants must standardize hiring templates and workflows

  • Québec tip prompts must remain pre-tax across all ordering channels

  • BC restaurants face continued high labour costs requiring efficiency gains

  • Alberta’s stable wage does not eliminate hiring competition

  • Multi-province operators should treat compliance as a systems issue, not a one-off fix

Federal Changes (All Provinces)

Immigration Levels & Workforce Availability

Canada’s 2026-2028 Immigration Levels Plan sets a target of 385,000 new temporary resident arrivals in 2026, with an explicit goal of reducing the temporary population to below 5% of Canada’s total population by the end of 2027.

Why this matters for restaurants:

  • Restaurants are among the largest employers of international students and temporary foreign workers
  • Fewer new arrivals may tighten entry-level and seasonal labour pools in major cities
  • Competition for experienced kitchen and FOH staff is likely to increase

What operators should do:

  • Start recruiting earlier for peak seasons (summer patios, holidays)
  • Improve retention through predictable scheduling and internal promotions
  • Build local pipelines (referrals, schools, community hiring)
Alcohol Excise Duties (Nationwide Impact)

Federal excise duties on beer, wine, and spirits continue to be indexed annually on April 1 based on CPI. While the federal government capped increases at 2% for a limited period, even small increases affect supplier pricing and restaurant margins.

Why this matters in 2026:

  • Beverage margins are often one of the few profit cushions restaurants have
  • Small upstream increases compound across distributors and suppliers

What operators should do:

  • Plan a spring 2026 beverage cost review
  • Re-engineer drink menus around high-margin SKUs
  • Tighten portion control and pricing cadence

Ontario

New Job Posting & Hiring Rules (Effective January 1, 2026)

Ontario restaurants with 25 or more employees must comply with new rules governing publicly advertised job postings.

Key requirements include:

  • Posting expected compensation or a pay range (range cannot exceed $50,000)
  • Disclosing whether AI is used in screening or hiring
  • Stating whether the job posting represents a real vacancy
  • Prohibiting “Canadian experience required” language
  • Retaining job postings for 3 years
  • Notifying interviewed candidates of a hiring decision within 45 days

Why this matters for restaurants:

  • Hospitality hiring is fast and decentralized
  • Non-compliant job posts (Indeed, social, career pages) create legal exposure
  • Multi-location operators need consistency across managers

What operators should do:

  • Create a standard Ontario-compliant job posting template
  • Decide and document whether any AI hiring tools are used
  • Set up a simple 45-day follow-up workflow for interviewed candidates
Digital Platform & Delivery Environment

Ontario’s Digital Platform Workers’ Rights Act (effective July 1, 2025) is now part of the operating environment restaurants rely on for delivery.

Why this matters in 2026:

  • Delivery platforms may adjust fees, service models, or availability
  • Consumer expectations around worker protections are rising
  • Over-reliance on third-party delivery increases risk

What operators should do:

  • Reassess delivery profitability by channel
  • Push more volume toward direct online ordering
  • Price delivery menus separately from dine-in if needed
Labour Cost Baseline
  • Ontario general minimum wage: $17.60/hour (effective October 1, 2025)

Even without a confirmed 2026 increase yet, wage compression and competition will continue to push total labour costs upward.

Québec

Tipping Rules (Bill 72 – Ongoing Compliance in 2026)

Québec’s Bill 72 is already in force but remains highly relevant in 2026 due to enforcement risk and guest transparency expectations.

Core requirement:

  • Suggested tips must be calculated on the pre-tax amount, not the total after GST/QST

Applies to:

  • Payment terminals
  • Self-serve kiosks
  • QR code ordering
  • Online ordering checkouts

Why this matters:

  • Non-compliance can trigger complaints and reputational damage
  • Guests are increasingly aware of tip calculation practices

What operators should do:

  • Audit every tip surface in your tech stack
  • Train staff on a simple explanation for guests
  • Ensure POS and online ordering settings remain compliant after updates
Labour Cost Baseline
  • General minimum wage: $16.10/hour
  • Tipped minimum wage: $12.90/hour

Even with a separate tipped wage, total labour costs continue to rise through payroll taxes, benefits, and scheduling inefficiencies.

British Columbia

Labour Cost Pressure

General minimum wage: $17.85/hour (effective June 1, 2025)

Why this matters in 2026:

  • BC already has one of the highest minimum wages in Canada
  • Labour optimization, scheduling accuracy, and productivity gains are critical

What operators should do:

  • Tighten labour forecasting and shift planning
  • Cross-train staff to reduce role overlap
  • Use sales-based scheduling instead of fixed shifts

Alberta

Stable Minimum Wage, Rising Competition
  • General minimum wage: $15.00/hour (unchanged)

Why this still matters in 2026:

  • Even without increases, competition for staff pushes real wages higher
  • Restaurants compete with retail, logistics, and service sectors

What operators should do:

  • Focus on retention and culture as differentiators
  • Offer predictable schedules and advancement paths
  • Avoid relying on wage stagnation as a long-term strategy

Conclusion

In 2026, Canadian restaurant operators won’t be reacting to one massive policy shock but rather navigating layered federal and provincial changes that quietly increase costs and compliance risk. The operators who succeed will be the ones who standardize hiring, audit their POS and ordering systems, and plan labour and pricing proactively by province. Treat 2026 as a year to operationalize compliance, not scramble for it.

If you want, I can turn this into province-specific checklists or a multi-location compliance playbook tailored to your restaurant group.

FAQ

Federal immigration targets and alcohol excise duty adjustments apply nationwide. Labour standards, tipping rules, and hiring requirements are provincial.

They apply to Ontario employers with 25 or more employees and only to publicly advertised job postings.

Yes but suggested tips must be calculated on the pre-tax subtotal, not the total after sales tax.

Table of Contents

Get The Latest Restaurant Data, Trends & Tips