Manitoba PST plan on prepared food will distort consumer choice, threaten restaurant jobs: Restaurants Canada

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Toronto, May 11, 2026 (GLOBE NEWSWIRE) — Restaurants Canada is calling on the Manitoba government to amend its PST exemption on prepared foods sold by grocery and convenience stores, which continues to exclude restaurants.

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As designed, this is not a neutral tax cut on food—it is a tax shift between competitors that distorts consumer choice. It creates an arbitrary distinction between identical products based solely on where they are purchased, exempting prepared food from some sellers while taxing it from others.

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The measure, included in budget implementation legislation now before the Legislature, can still be corrected to ensure all prepared food is treated consistently, regardless of where it is purchased.

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“This approach misses the mark on affordability and economic policy,” said Kelly Higginson, President and CEO of Restaurants Canada. “Manitobans should not have to change where they buy their meals to access relief. Food is food, and tax policy should treat it that way.”

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For many Manitobans—workers, families, and individuals with limited mobility—restaurants are often the most accessible and practical source of prepared meals. By excluding restaurants, the policy risks limiting choice rather than expanding affordability. Lower-income households also spend a greater share of their income at restaurants, meaning consistent tax treatment would deliver proportionally greater benefit to those most in need.

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Restaurants are a key economic driver in Manitoba, generating approximately $3.5 billion in annual sales and employing more than 42,000 people, with roughly 40% of those jobs held by youth.

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“Policies that disadvantage a sector of this scale will have real consequences,” added Higginson. “Restaurants support jobs in every community in Manitoba, and when policy shifts demand away from them, it puts those jobs at risk.”

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The sector is already under significant pressure, with many operators reporting lower sales, fewer guests, and declining profitability. Further shifting demand away from restaurants risks accelerating job losses and weakening local economies across the province.

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Restaurants Canada is calling on the Manitoba government to amend its PST exemption plan to include restaurant meals. A consistent approach would better support affordability, preserve consumer choice, and protect jobs across the province.

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About Restaurants Canada

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Restaurants Canada is a national, not-for-profit association advancing Canada’s diverse and dynamic foodservice industry. Restaurants are a $125 billion industry employing 1.2 million Canadians and the number one source of first-time jobs in Canada. Visit restaurantscanada.org for more information.

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