Canadian restaurant owners are urging the federal government to make the temporary Goods and Services Tax (GST) holiday on restaurant meals permanent, citing an increase in sales and customer visits during the tax break period. Some industry leaders argue that the holiday, which runs from December 14th to February 15th, has proven successful in boosting business and should be extended.
The Canadian PressBill Pratt, a veteran chef and CEO of Chef Inspired Group of Restaurants, walks out a shared restaurant space of Cheese Curds Gourmet Burgers + Poutinerie and Habaneros Modern Taco Bar in Dartmouth, N.S. on May 17, 2023. THE CANADIAN PRESS/Darren Calabrese
“People are just freaking loving it, like we hear about it every day. It’s just crazy,” said Bill Pratt, the chief executive of the Chef Inspired Group of Restaurants, which owns Habaneros Modern Taco Bar, Cheese Curds and Studio East Asian Gastropub in Nova Scotia. Survey data from industry group Restaurants Canada released Friday shows there was a modest increase in how often Canadians dined out at restaurants in December compared with December 2023.
“But then I think people started to see their bills and thought, ‘Oh, stopping for that snack isn’t as much or I’m going out for dinner and I’m going to order just that little bit of a better bottle of wine because there isn’t that 13 per cent added on at the end of the meal.’”Pratt said he’s noticing more patrons on weeknights: “On a Wednesday night, we didn’t have that many people last year.”
The tax break, which also applied to purchases of some groceries, toys and children’s apparel, was framed by the federal government as a way to help ease the high costs Canadians have grappled with.
GST HOLIDAY RESTAURANT INDUSTRY SALES CUSTOMER VISITS FEDERAL GOVERNMENT
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Tax holiday boosting spending at retailers, restaurants: industry groupsAlmost a week into the GST holiday, retailers and restaurant owners appear on track for a sales boost despite some of the struggles they faced implementing the temporary break.
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Tax holiday boosting spending at retailers, restaurants: industry groupsAlmost a week into the GST holiday, retailers and restaurant owners appear on track for a sales boost despite some of the struggles they faced implementing the temporary break.
Read more »