Minimum wage hike puts pressure on struggling N.S. restaurants, group says

Not everyone is happy about the province’s move to increase minimum wage, as Restaurants Canada says it will pose significant challenges for the industry.

Earlier this month, the province increased minimum wage from $15.20 to $15.70 — the first of two increases this year, with another 80-cent raise coming Oct. 1.

Janick Cormier, vice-president for Atlantic Canada at Restaurants Canada, tells 95.7 NewsRadio the wage increase threatens job stability for the 32,000 Nova Scotians they employ.

“The reality is that unfortunately 53 per cent of restaurants are operating at a loss or barely breaking even,” said Cormier. “So any additional cost will have repercussions. Costs to operate a restaurant have gone up 24 per cent in the last two years.”

She says minimum wage increases pressure on restaurants to raise wages for non-minimum wage staff, which results in higher menu prices. According to the organization, the restaurant industry is responsible for 4.7 per cent of the province’s GDP and helps boost tourism. However, in the last several years, the industry has been hit hard and is still recovering from pandemic-related issues.

“However, more than half of restaurants (53 per cent) are operating at a loss or just breaking even, up from 12 per cent pre-pandemic,” the report reads. “They have seen increases of 20% or more on their insurance, food, utilities and labour costs already over the past two years.”

Cormier is calling on the province to implement a number of actions, including a minimum wage subsidy program to help restaurant employers transition.

“The last four years have been devastating for the foodservice industry, and we are facing significant challenges in 2025,” she said. “Nova Scotians don’t want to see any more iconic local restaurants close their doors.”