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.
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)
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
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
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
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
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.
