Our Advocacy Efforts

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Summary of Recommendations

Beverage Alcohol Pricing

ORHMA continues to advocate for a fairer and more competitive beverage alcohol pricing framework for Ontario’s hospitality industry. In 2025, following ongoing industry advocacy, the LCBO increased the wholesale discount for hospitality operators from 10% to 15%, providing meaningful financial relief to restaurants, bars, and other licensed establishments across the province.

While this was a positive step forward, significant affordability challenges remain. As of April 1, 2026, Ontario transitioned to a new LCBO “cost-plus” pricing model for licensees. Despite modest reductions in some product categories, Ontario hospitality operators continue to face beverage alcohol costs that remain significantly higher than those in many other provinces. Embedded fees, markups, taxes, and inflationary pressures continue to impact business sustainability.

ORHMA continues to advocate for:

  • Reduce the minimum order threshold to relieve pressure on small restaurants.
  • Allow licensees to purchase beer directly from the LCBO to improve pricing and availability.
  • Set beer prices for licensees below retail prices and allow access to promotional discounts.
  • Permit licensees to use credit cards for beer purchases to enhance flexibility and reduce costs.