Manitoba Budget 2026 misses opportunity to make all food more affordable

Toronto, March 24, 2026 (GLOBE NEWSWIRE) -- Today’s Manitoba budget fails to exempt all food, including restaurant meals, from provincial sales tax (PST) to make life more affordable for Manitobans.

Canadians are struggling with rising living costs. Unlike groceries, restaurant meals are subject to PST in Manitoba, making them more expensive for consumers and adding pressure on foodservice businesses. While the government has announced an exemption from PST for prepared meals sold in grocery stores, the measure ignores that Manitobans regularly look to restaurants for quick and convenient meals for families on the go.

“Manitobans need and deserve support on affordability, but it must be delivered in a way that is fair and protects jobs. Manitobans should not be taxed on rotisserie chicken sold in a restaurant if the same product is going to be exempt from PST in a grocery store,” said Kelly Higginson, President and CEO of Restaurants Canada. “Exempting prepared meals sold at grocery stores from PST, but not those sold at restaurants, would hurt consumers while putting restaurant businesses and their workers at risk.”

Removing the PST from restaurant meals would ease costs for families and support an industry that employs over 42,800 Manitobans, including 19,000 youth. These are critical jobs for communities, especially as they struggle with higher unemployment, affordability and continued economic uncertainty. 

Manitoba’s restaurants drive $3.5B in sales in each year. Every $1M in revenue at a restaurant produces nearly 12 jobs, compared to fewer than four at a grocery store. Across Canada, 44% of restaurants are currently operating at a loss or breaking even, as operating costs continue to rise while consumers are pulling back on restaurant spending.

“We recognize the need for broad affordability measures to help Manitobans struggling with the cost of living, but restaurants should not be left out,” added Higginson. “Many Manitobans depend on restaurants for their daily meals, as well as for their livelihoods. We call on the Manitoba government to include restaurant meals in the planned PST exemption.”

About Restaurants Canada
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.

CONTACT: Milena Stanoeva
Restaurants Canada
6479211758
media@restaurantscanada.org