Restaurants Canada is extremely pleased by new loan program and alcohol discount announced in Newfoundland and Labrador’s budget

/EIN News/ -- St. John's, April 09, 2025 (GLOBE NEWSWIRE) -- Restaurants Canada is very pleased by today’s announcement from the government of Newfoundland and Labrador of a $10 million restaurant loan guarantee program and doubling the alcohol wholesale discounts to 10% for licensed restaurants on wine, spirits and ready-to-drink beverages.

These measures will help the province’s more than 1,000 foodservice businesses weather economic pressures, protect jobs and keep food prices affordable.

Alcohol is a critical part of a restaurant’s revenue, so lowering the wholesale cost is a very effective measure to reduce the cost of doing business and strengthen profitability. Those sales also translate into more tax paid to the province, offsetting the cost of the discount.

The pandemic and its aftershocks have taken a toll on Newfoundland and Labrador’s restaurant industry. There are 2,600 fewer foodservice jobs in the province today than there were in 2019 and a slew of closures of high-profile restaurants has rocked the industry recently. The restaurant loan guarantee program will provide a lifeline to struggling businesses and give them the time they need to adjust to current market conditions.

Restaurants Canada continues to call for measures that will support the foodservice industry, such as exempting all food from GST/HST and reducing interprovincial trade barriers. Today’s announcement from the Newfoundland and Labrador government shows that it is listening.

Janick Cormier, Vice-President for Atlantic Canada, Restaurants Canada

About Restaurants Canada

Restaurants Canada is a national, not-for-profit association advancing Canada’s diverse and dynamic foodservice industry. Restaurants are a nearly $120 billion industry employing 1.2 million Canadians and is the number one source of first-time jobs in Canada.

Milena Stanoeva
                    Restaurants Canada
                    6479211758
                    media@restaurantscanada.org

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