"When the expansion was announced last year, the government said all retailers would have a 10 per cent wholesale discount from the LCBO until an overall new wholesale pricing structure is rolled out in 2026. This spring, the government temporarily increased that discount to 15 per cent for bars, restaurants and convenience stores, citing the need to protect them from impacts of U.S. tariffs."
""We have also seen double-digit inflationary pressures around food, around insurance, around commercial rent you kind of name it, it's gone up," she said in an interview. "We haven't raised menu prices as much as our input costs have been increasing, but we will have to raise prices for alcohol. We will not have an option, because we can't continue to raise prices on food.""
Ontario is expanding and modernizing alcohol sales, with beer, wine and coolers now sold in convenience stores, a reduced Beer Store footprint and changes to the empties system. Retailers were promised a 10 per cent wholesale discount from the LCBO until a new wholesale pricing structure in 2026, and a temporary 15 per cent discount for bars, restaurants and convenience stores to offset U.S. tariffs ends Dec. 31. The reduced discount may force some businesses to raise customer prices. Restaurants face tight margins, with 41 per cent unprofitable, and inflationary pressures on food, insurance and commercial rent. LCBO will become the exclusive wholesaler and retailers are concerned about a looming new cost structure while the Beer Store keeps responsibility for the deposit return program.
Read at www.cbc.ca
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