GATINEAU (Québec), Competition Bureau
A competitive food sector can better respond to consumer needs, adapt to new technologies, and compete on a national and global scale. And small businesses are vital to Canada's food sector.
Today, the Competition Bureau published a report on how shared kitchens and food hubs can help small food producers enter the market and grow.
These spaces provide shared infrastructure that can lower the high start-up costs and ongoing fixed costs that businesses normally face when they invest in their own facilities. However, Canada's mix of municipal, provincial and federal rules create challenges for these shared spaces and the businesses they serve.
The Bureau makes three recommendations to remove barriers for SMEs and increase competition:
- Harmonize food safety and licensing rules across jurisdictions. This would reduce regulatory duplication and provide small businesses with clarity on how to operate across multiple regions.
- Clarify compliance expectations and standardize inspection procedures for shared food production facilities. This would streamline inspection processes and standardize compliance for multiple businesses operating from the same facility.
- Use shared facilities as testbeds for regulatory innovation. This would allow regulators to safely pilot new regulations and compliance tools, gather practical evidence, and improve food safety frameworks based on operational outcomes.
The findings are informed by research and consultations with regulators, industry experts, food hub operators and other market participants.
This report is part of the Bureau's ongoing work to promote competition in the food sector.
