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Dec 23, 2025

Restaurant Sector Warns Labour Crunch Looms as Immigration Targets Fall

Restaurant Sector Warns Labour Crunch Looms as Immigration Targets Fall
Toronto-based fast-casual chain Naan Kabob has issued a stark warning that lower immigration ceilings could stall expansion plans across Canada’s CA$110-billion restaurant industry. In a statement, the company said the 2025-2027 Immigration Levels Plan—reducing permanent-resident admissions to 365,000 by 2027 and capping temporary-resident inflows—threatens the labour pipeline that fuels kitchens and front-of-house roles.

For restaurants or prospective employees trying to navigate the tightening visa landscape, VisaHQ offers streamlined, step-by-step assistance with Canadian work permits, study permits, and visitor visas. Its online platform (https://www.visahq.com/canada/) tracks document deadlines, arranges courier services, and keeps users informed of policy changes, allowing hospitality operators to focus on staffing rather than paperwork.

Restaurant Sector Warns Labour Crunch Looms as Immigration Targets Fall


Hospitality historically relies on newcomers: one in four food-service workers arrived in Canada within the past seven years, according to Statistics Canada. Reduced foreign-worker numbers mean operators may face overtime costs, curtailed opening hours and deferred site launches, squeezing already thin 3-5 percent profit margins.

While the sector can still access the Temporary Foreign Worker Program, recent wage-floor hikes and a two-year, 20-percent workforce cap make that channel less flexible. The incoming provincial attestation requirements for study permits could further shrink the pool of international students who often fill evening and weekend shifts.

Industry advocates are urging Ottawa to introduce a dedicated Hospitality Mobility Stream—similar to Australia’s subclass 407 training visa—to allow rotational, employer-sponsored placements. They also call for expedited pathways to permanent residence for line cooks and food-service supervisors under Express Entry’s category-based selections. Until policy changes materialize, restaurants are ramping up retention bonuses, cross-training and automation pilots to keep doors open.
VisaHQ's expert visas and immigration team helps individuals and companies navigate global travel, work, and residency requirements. We handle document preparation, application filings, government agencies coordination, every aspect necessary to ensure fast, compliant, and stress-free approvals.
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