As foodservice industry faces persistent challenges like labour shortages, rising prices, and supply chain uncertainly, wage increases are set to continue in 2026 in two Canadian provinces. According to Technomic’s recent Industry Insights report, Nova Scotia raised its minimum wage to $16.50 in October of last year, and has scheduled two additional increases in April and October 2026, bringing the final rate to $17.00 per hour. Prince Edward Island will also reach the $17.00 benchmark by April 2026.
As of the first quarter of the year, here are the current Canadian restaurant minimum wage rates across the country:
Alberta: $15/hour, with a student minimum wage of $13.00/hour for workers under age 18
British Columbia: $17.85/hour
Manitoba: $16.00/hour
New Brunswick: $15.65/hour
Newfoundland & Labrador: $16.00/hour
Northwest Territories: $16.95/hour
Nova Scotia: $16.50/hour, increasing to $16.75 on April 1, 2026, and $17.00 on October 1, 2026
Nunavut: $19.75/hour.
Ontario: $17.60/hour with a student minimum wage of $16.60/hour for workers under age 18
Prince Edward Island: $16.50/hour
Quebec: $16.10/hour
Saskatchewan: $15.35/hour
Yukon: $17.94/hour
How can restaurants try to manage the increased wage costs, as food costs continue to rise and labour remains challenging? Balancing rising costs with tight margins can be a complicated balance for operators competing in such a crowded marketplace. Here are a few strategies that operators can employ to try and maintain their margins as costs continue to rise:
Menu engineering: While this is not a new concept, it is especially important these days that operators are making the most of their ingredients, eliminating lost leaders, and prioritizing menu and ingredient versatility. This strategy may include suggestive selling or highlighting menu upgrades, add-ons, and suggested pairings to help increase guest cheques. Seasonal LTOs can also help get people through your doors seeking innovative offerings and increased perceived value, so adding limited time options to the menu can help you use ingredients and drive traffic to help offset increasing costs.
Off-premise dining: Do you know the profitability of your off-premise dining program? To help maximize margins, assess delivery profitability by channel to see where opportunities to improve exist, encourage direct online ordering to save time and labour, create a smaller off-premise menu that remains profitable when you factor in delivery.Consider your flow of operations for off-premise dining to streamline labour, limit food waste, andmaximize revenues for these orders.
Inventory management: Mismanaged inventory can lead to significant losses for a restaurant. Automating your inventory management can reduce human error, provide accurate tracking, minimize food waste, and get the most out of your existing ingredients. Developing solid relationships with your local suppliers can also help you with bulk pricing, delivery savings, and maximizing your ingredients to focus on seasonality.
Labour costs: Labour is becoming even more expensive, so strategic scheduling, cross-training, and prioritizing employee retention can help operators avoid overspending and costly turnover. Studies show that the average employee turnover rate is 27 per cent, while the average cost of training a new employee totals $3,037.20, so retention can save operators some hefty fees. Technology can also help here, with chatbots offering 24/7 customer service and AI helping to handle admin tasks, identify inefficiencies, streamline labour, and predict upcoming costs. Focus on training too. Efficient staff can help you increase table turnover, so you can serve more guests, and raise revenues.
Accounting: Are you vigilant about data and accounting? Many small business owners make the mistake of not separating business and personal expenses, and this can add up when tax time comes around. Manage your overhead costs consistently, too. Use your accounting software to monitor monthly expenses and renegotiate contracts and costs wherever you can.
Equipment: Replacing equipment can seem counter-intuitive when trying to manage rising wages but switching to energy saving equipment or tech upgrades can help you lower your regular bills. While this may not be an option in the immediate future, try budgeting for these options when it comes time for replacement or significant repair. Saving money by using less energy or adding sensor technology to streamline your equipment can help you lower your bills consistently over the long haul.
Restaurant margins are notoriously thin, and with many struggling to stay afloat, rising minimum wages can seem insurmountable. In fact, research shows that 41 per cent of restaurants are operating at a loss or barely breaking even. Last year, 7,000 Canadian restaurants went out of business, and 4,000 are predicted to do the same in 2026. With growing wage costs, steady food increases, and an unstable economy, operators will need to be really strategic in identifying and capitalizing on any opportunity to reduce costs.
