Challenges Facing the Restaurant Industry in British Columbia (BC)

With citations and sources

The restaurant industry in British Columbia is currently facing significant difficulties, driven by a combination of high operating costs, reduced customer traffic, labour shortages, and an increase in business closures. The following summary is based on recent Canadian news reports and industry data.

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1) BC has seen the largest decline in restaurant employment in Canada

Between 2023 and 2024, BC recorded the biggest drop in food‑service employment nationwide.

• As of September 2024, employment fell by 10,800 jobs year‑over‑year, reaching the lowest level since 2016 (excluding pandemic years).

Source:

• Restaurants Canada, Foodservice Facts 2024
• Global News, “BC sees largest decline in restaurant employment,” Sept 2024
• Statistics Canada Labour Force Survey (2024)

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2) Fewer customers & worsening profitability

According to Restaurants Canada:

• 70% of restaurants reported fewer customers compared to the previous year
• 81% said profitability worsened
• Only 15% described business conditions as “good.”

Source:

• Restaurants Canada, Restaurant Outlook Survey 2024
• CBC News, “Rising costs and fewer customers hurting BC restaurants,” 2024

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3) Increase in closures and bankruptcies

BC is among the provinces with the highest number of restaurant bankruptcies in early 2024.

• Across Canada, an average of 120 restaurants close each month
• BC has been part of this trend, with closures becoming increasingly common

Source:

• Canadian Association of Insolvency and Restructuring Professionals (CAIRP), 2024 Report
• Vancouver Sun, “Restaurant bankruptcies rising across BC,” March 2024

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4) Rising food costs, rent, and operating expenses

BC faces some of the highest operating costs in the country.

• Food prices increased by about 4% year‑over‑year in 2025
• Commercial rent has risen sharply
• Complex licensing and regulatory processes add additional burdens

Source:

• Statistics Canada, Consumer Price Index (Food), 2024–2025
• BC Restaurant and Food Services Association (BCRFA) statements, 2024
• CTV News Vancouver, “High rent and inflation squeezing BC restaurants,” 2024

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5) Labour shortages remain severe

• Tighter rules around the Temporary Foreign Worker Program have made hiring more difficult
• Domestic labour supply remains insufficient, especially for kitchen positions

Source:

• Government of Canada, Temporary Foreign Worker Program updates (2024)
• Global News, “BC restaurants struggle to hire staff,” 2024

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Summary

BC’s restaurant industry is experiencing a multi‑layered crisis:

• High operating costs
• Lower customer demand
• Labour shortages
• Increased closures

Industry experts expect gradual improvement starting in mid‑2025, depending on inflation, interest rates, and consumer confidence.

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