what we’re
advocating for
The Alberta Hospitality Association exists to provide a unified voice for our industry. At its core, AHA wants to see our industry thrive and grow. In order to achieve this, AHA has focused on some key causes that we believe are having the most effect on businesses in our industry.
The Alberta Hospitality Association recognizes the pivotal role independent restaurants play in the vibrancy and success of communities across the province. These establishments have endured unprecedented challenges recently, from skyrocketing operating costs to diminishing customer demand and workforce shortages. The pressures of inflation, rising property taxes, and increased energy costs have forced many operators to make difficult decisions, including reducing hours, cutting staff, and, in many cases, closing their doors entirely.
In response, we have developed clear, targeted advocacy points to address these challenges. By urging government and industry stakeholders to adopt fiscally responsible, innovative, and fair policies and consider the ripple effects of programs and polices, we aim to create an environment where independent restaurants can thrive, contribute to their communities, and continue to provide opportunities for Albertans.
Alcohol Markups
What is the concern:
On February 27, 2025, the Alberta Government announced changes to Liquor Markup Rates and Policies, including a reduction in Annual Worldwide Production (AWP) thresholds for beer, cider, refreshment beverages, and spirits, as well as the introduction of an ad valorem tax on wine.
These additional liquor costs will trickle down to restaurant owners and operators, further straining an industry already facing skyrocketing operational expenses. Over the past two years, the hospitality sector has seen:
• 25% increase in food costs
• 18% increase in labour costs
• 22% increase in additional operating expenses
During the same period, menu prices have only risen by approximately 17%. Restaurants are unable to pass these increases on to consumers while remaining competitive and affordable to customers.
The continued pressure on restaurant margins will inevitably lead to job losses, and for some small independent businesses, this may be the proverbial final straw, forcing them to shut their doors.
What AHA is calling for:
AGLC to rescind the liquor markup changes announced February 27, 2025
Tariff Impacts
What is the concern:
Trade experts warn that Canada should prepare for unstable trade partnerships over the next four years. In response to U.S.-imposed tariffs on Canadian products, Canada has signaled counter-tariffs on essential goods, many of which are critical to the restaurant industry.
These countermeasures will increase business costs, further fuel inflation, and reduce consumer discretionary spending, making it even more difficult for restaurants and bars to remain profitable.
Any disruption to the supply chain—whether from higher food costs, packaging expenses, or rising operational costs—will have a direct and significant impact on the industry.
Alberta’s hospitality sector already operates on exceptionally slim margins. Additional financial strain from tariffs, inflation, and escalating food costs puts many local restaurants, bars, and food service operators at serious risk of closure.
What AHA is calling for:
Food to be excluded from counter-tariffs. At a minimum, certain food products that cannot be grown in Canada should be exempt.
Revenues from counter-tariffs should be used to provide relief to small businesses most impacted by the counter-tariffs.
Continued action to remove interprovincial trade barriers, especially on alcohol sales, agricultural regulations, supply management and trucking regulations.
Rising Energy Costs
What is the concern:
Independent restaurants in Alberta are struggling with significantly higher energy costs, with electricity rates in 2024 still double those of 2020. Fixed-rate plans in 2023 saw restaurants paying twice as much as the previous year, further straining their already tight budgets. Additionally, small businesses disproportionately bear the burden of the federal Carbon Tax, paying 40% of the tax while receiving only 5% of rebates. These rising energy costs make it even harder for restaurants to remain profitable, highlighting the need for fair policies and cost-saving measures to support the industry’s sustainability.
What AHA is calling for:
We are advocating to end the federal Carbon Tax, which disproportionately affects small businesses.
We are advocating for the review and reduction of service charges and taxes from ENMAX/EPCOR. Executive Compensation should be included in the review.
Municipal Property Taxes
What is the concern:
Independent restaurants in Alberta face disproportionate property tax burdens, with businesses comprising 21% of total property assessments but paying 41% of property taxes in the province’s largest cities. Over the last five years, their share of taxes has increased significantly, squeezing already narrow profit margins. With high municipal operating costs driving these taxes, restaurants are struggling to keep up, leading to reduced hours, staff cuts, and even closures. Addressing property tax inequities is critical to easing financial pressures and ensuring the survival of independent restaurants, which are essential to vibrant communities and local economies.
What AHA is calling for:
Reduce property taxes through restraint in municipal operating spending and finding internal efficiencies.
Create a small business property tax subclass for non-residential properties with lower mil rates.
Hiring Qualified Staff
What is the concern:
Restaurants in Alberta are facing ongoing challenges hiring and retaining qualified staff. There has been a drop in Apprenticeships in the restaurant industry making it difficult to hire candidates with the training to run profitable kitchens. The latest data on apprenticeship cooks (2021) shows a 22% decrease in registered students year over year and a 47% decrease since 2016. Without targeted efforts to promote culinary trades and support training programs, restaurants will struggle to find the skilled staff needed to operate efficiently and profitably. Addressing this gap is critical to sustaining the industry and creating long-term career opportunities.
What AHA is doing/calling for:
We are calling for funding for a youth-focused marketing campaign targeted at Alberta youth to promote careers in the restaurant industry. This should be done to align with the broader provincial Tourism plan looking to expand the industry to $25 Billion by 2035, keeping in mind that 51% of jobs in the industry are food and beverage.
We want to see more employer incentives for the training of apprentices in all skilled trades, including the culinary fields.
We are calling for the implementation of education programs for Junior and High School students to introduce them to the skilled trades, including the culinary fields expand junior and high school education programs to introduce students to careers in skilled trades and culinary arts.
Remove income taxes on tips. This would increase the earning capacity of restaurant industry workers and draw to and keep more individuals in the sector.
Continue the WIL Voucher program to support workforce integration in hospitality.
