Updated on December 22, 2025, 10:41 AM EST (Toronto Time)
A&W franchise owners in Quebec are expressing concerns over potential closures or reduced operating hours in the fast-food sector due to limited access to temporary foreign workers.
Business leaders nationwide are echoing these worries as recent federal reforms impose stricter regulations on the Temporary Foreign Worker Program (TFWP).
Arrivals under the program have hit a two-year low, creating challenges for employers in industries like hospitality, agriculture, and retail to fill crucial positions.
The reductions in the program aim to address issues related to housing, wages, and youth employment, raising questions about the impact on the economy.
The TFWP has traditionally served as a vital resource for sectors facing labor shortages by enabling Canadian employers to hire international workers when local candidates are not available.
However, with the admission cap set at 82,000 in 2025 and scheduled to decrease further to 60,000 in 2026, and then to 50,000 annually in 2027 and 2028, businesses are feeling the strain.
These measures are part of a broader strategy to bring temporary resident levels to a more sustainable level, aiming for the temporary population to fall below 5% of Canada’s total by the end of 2027.
While some argue that the program has deviated from its original purpose and may be impacting wages or displacing young Canadian workers in a struggling job market, others see it as a vital economic support.
The Decline in Temporary Foreign Worker Arrivals
Canada’s labor market has seen a significant shift with TFWP arrivals reaching a nearly two-year low.
Data from Immigration, Refugees and Citizenship Canada (IRCC) shows a sharp decrease, with only 3,215 new workers entering under the program in October 2025, a stark difference from previous highs.
This decline is attributed to policy changes such as a pause on low-wage Labor Market Impact Assessments (LMIAs) in certain regions and heightened scrutiny of applications.
The stricter LMIA process now requires employers to demonstrate the unavailability of Canadian or permanent resident candidates for the job, aligning with the government’s focus on domestic hiring.
These changes mark a shift from the program’s rapid expansion in response to post-pandemic demands in sectors like food services and agriculture.
Not limited to a temporary drop, the decrease in arrivals is part of a deliberate strategy to reduce overall inflows of temporary residents.
Projections suggest that Canada may end 2025 with approximately 202,900 foreign worker admissions, significantly lower than the initial target of 367,750, which included 82,000 under the TFWP.
As these numbers contract, businesses relying on seasonal or low-skilled labor face vulnerabilities, risking operational disruptions and economic consequences in rural and remote regions.
Capping Targets for Sustainability
The 2026-2028 Immigration Levels Plan by the federal government introduces specific caps on TFWP admissions for the first time.
The admission numbers are set to decrease from 82,000 in 2025 to 60,000 in 2026, and stabilize at 50,000 for both 2027 and 2028.
These figures are part of broader temporary resident targets, which will reduce from 673,650 in 2025 to 385,000 in 2026, and 370,000 in 2027 and 2028.
The government has also heightened enforcement, doubling penalties for non-compliant employers to $4,882,500 in the first half of 2025, resulting in 36 bans from the program.
Advocates argue that these actions will ease pressures on housing and public services, while critics claim they overlook the program’s role in supporting critical industries.
Additional changes, such as shortening the validity of low-wage stream work permits from two years to one, aim to prevent exploitation and encourage investment in local talent.
However, as arrivals continue to lag, the gap between policy intentions and economic realities widens, especially in provinces with acute labor shortages.
Impending Closures and Cutbacks Across Provinces
The cutbacks have prompted urgent appeals from business owners, warning of closures and service reductions without access to foreign labor.
In Quebec, A&W franchisees in cities like Sept-Îles and Baie-Comeau have reached out to the House of Commons, highlighting challenges in finding local staff for fast-food positions.
They argue that without reinstating access to temporary foreign workers, closures or reduced hours are inevitable, potentially impacting local economies.
Similar concerns are raised in northern British Columbia, where employers in Prince Rupert struggle to fill positions due to the crackdown, leading business groups to call for regional exemptions.
