Cabinet has moved to relax restrictions on migrant workers in the restaurant industry following pressure from Tim Hortons franchisees, Access to Information records show, allowing operators to fill tens of thousands of jobs that they warned would otherwise go vacant.
Blacklock's Reporter says an October 28 memo to the Deputy Minister of Industry highlighted concerns that a shrinking labour force and declining productivity were putting restaurants in survival mode rather than expansion.
“Persistent labour shortages continue to limit the restaurant industry’s operational success,” the document noted, citing more than 63,000 unfilled positions nationwide.
The memo also reported a 4% decline in labour productivity over the past decade in food service, the second lowest among Canadian industries, and called for policy measures to support franchisees, including permanent repeal of the GST on meals and a new tax credit for kitchen supplies.
“Rising operational costs while keeping prices affordable for consumers” could be offset through tax breaks and expanded access to foreign labour, the memo said.
On March 13, the labour department implemented targeted changes to the Temporary Foreign Worker Program.
Effective April 1, operators in “eligible rural regions” may increase low-wage migrant labour quotas from 10% to 15% of payroll, giving restaurants more flexibility to meet staffing needs.
Similar lobbying by A&W Restaurants in 2025 had pushed for exemptions to hire additional migrant workers, arguing that local workers, students, and new Canadians could not fill essential shifts.
Franchisees in Sept-Îles and Baie-Comeau, Que., told the Commons human resources committee that without temporary foreign workers, many services would close or sharply reduce hours.
“Québec workers are moving toward more stable and better paid sectors. Students cannot cover essential shifts. The local labour pool cannot meet basic needs of small and medium sized enterprises,” the petition said.
The memorandum emphasized that these pressures are especially acute outside major cities, where demographic growth and local labour availability are insufficient to meet demand.
The government said it remains committed to collaborating with industry partners to support workforce development, while easing regulations for restaurants reliant on migrant labour.
