The Good Stuff Starts Local: How Restaurants Strengthen Communities
Article written by: Donald Guse Salah, Director of Workforce Development, Restaurants Canada
In communities across Canada, restaurants are natural gathering places where people come together to socialize, connect and celebrate. Whether it’s a quick hello, a catch-up with friends or a major life event, restaurants play an important role in bringing people together.
That role extends beyond the dining room.
Restaurants are also significant employers and economic contributors in communities across the country, creating opportunities for people to build skills, gain experience and participate in their local economies. Canada’s restaurant industry employs approximately 1.2 million people, making it the fourth-largest private-sector employer in the country. The sector also employs 480,000 young people, and foodservice is Canada’s number-one source of first-time jobs. These employment opportunities bring people from a wide range of backgrounds into restaurant teams and the communities they serve.
In this article, “local” refers broadly to people who live within or near the communities where they work, regardless of where they are originally from. These employees are part of the diverse restaurant teams that build relationships with guests and their surrounding communities, creating a sense of familiarity and connection that keeps people coming back.
For many restaurant operators, building strong relationships with the communities they serve is an important part of their business. The people working in restaurants play an important role in creating those connections, building familiarity with guests through everyday interactions. Over time, these relationships can turn occasional customers into regulars while helping restaurants become familiar gathering places within their communities.
These trends play out in urban communities like Toronto, as well as smaller communities like Morell in PEI or Yarmouth in Nova Scotia, where Rodd Hotel and Resorts operate restaurants within their properties staffed by locals, catering to a community and visitor economy. “Hiring locally is always our priority. Hiring local team members not only supports the local economy and strengthens our relationship with the community, but also brings valuable local knowledge, creates stronger connections with our guests, and helps build a stable, long-term workforce.
We have made a significant effort to attract and retain local employees by investing in training and development, as well as offering enhanced pay and incentive programs, particularly at our more rural resort properties in PEI”, declares Eriks Faccin, Director of People and Culture for Rodd Hotel and Resorts.
While the workforce needs and realities of every restaurant and community are different, the connection between restaurants and their surrounding economies is significant. Restaurants create employment opportunities for people from a wide range of backgrounds and experiences, while the people working within them help create the hospitality and sense of connection that guests associate with their favourite establishments.
In a country as large and diverse as Canada, we see the same forces at work in big cities and small towns. Despite rising costs and tighter household budgets, according to Square’s Local Economy Report released in March 2026:
- 81% of Canadians plan to shop in their local neighbourhoods as much or more than last year
- 61% would continue supporting local businesses even if prices increase (provided value improves), and
- 74% visit multiple local businesses in a single trip at least occasionally1
This pattern of behaviour turns into revenue generation that sustains local businesses, as Square reports that “A small but loyal group of repeat customers generates nearly six times more annual revenue for Canadian neighbourhood businesses than one-time visitors2.”
For restaurants, cultivating those relationships means creating experiences that encourage people to return—not only because of the food or service, but because of the sense of familiarity and connection they find there.
When asked why hiring locally and having a local presence on their staff team is important, Karim Ladhani, Food and Beverage Manager at the Caledon Ski Club told us that, “Local hiring builds stronger community relationships, improves service quality and customer loyalty, contributes to operational flexibility, and demonstrates an investment in the community.” Ladhani continued to expand upon how this contributes to business sustainability and longevity, explaining that it “…helps build a stable, loyal workforce and a steady pipeline through referrals, schools, and community. Strengthens local community connections and reduces turnover (hiring and training costs), thus creating a stronger foundation for long-term business success and sustainability.”
Across Canada, restaurants occupy a unique place at the intersection of community, employment and hospitality. They provide opportunities for people to work, learn and build careers while creating spaces where neighbours, visitors, families and friends can connect.
Breaking bread together is one of humanity’s oldest traditions. Restaurants help make those interactions possible through welcoming environments and the work of the servers, hosts, cooks, managers and countless others who create them every day. Those teams may come from the immediate neighbourhood or from communities and backgrounds around the world, but together they contribute to the character of the restaurants and communities they serve.
The result is something restaurants have long understood: their value to a community extends far beyond what is served on the plate. They are places of employment, economic activity and human connection—and, for many Canadians, an important part of what makes a community feel like home.
¹ ² 2026 Square Local Economy Report
To learn more about Square, click here.
