Competition Bureau Recommends Easing Food Hub Regulatory Barriers

Competition Bureau Canada

Published March 19th, 2026

Detected March 20th, 2026

Summary

The Competition Bureau Canada has published a report recommending the removal of regulatory barriers for shared kitchens and food hubs. The report suggests harmonizing food safety rules, standardizing inspections, and using these facilities for regulatory innovation to help small food producers compete.

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What changed

The Competition Bureau Canada has released a report titled "A recipe for competition: How shared kitchens and food hubs can strengthen competition and small business growth in Canada’s food sector." The report identifies regulatory barriers, particularly in food safety and licensing, that hinder the growth of small food producers utilizing shared kitchen spaces. It makes three key recommendations: harmonizing food safety and licensing rules across jurisdictions, clarifying compliance expectations and standardizing inspection procedures for shared facilities, and using these facilities as testbeds for regulatory innovation.

These recommendations aim to reduce regulatory duplication, provide clarity for businesses operating across multiple regions, streamline inspection processes, and improve food safety frameworks. While the report itself is non-binding, it encourages policymakers to consider these suggestions to foster greater competition within Canada's food sector by making it easier for small and new producers to enter and grow their businesses. Regulated entities, particularly those operating or looking to operate shared kitchen facilities, should be aware of these recommendations and monitor potential legislative or regulatory changes at municipal, provincial, and federal levels.

What to do next

Review the Competition Bureau's report on food hubs and shared kitchens.
Assess current food safety and licensing compliance in relation to multi-jurisdictional operations.
Monitor for potential changes in food safety and licensing regulations at federal, provincial, and municipal levels.

Source document (simplified)

Competition Bureau calls to take down regulatory barriers around shared kitchens and food hubs

From: Competition Bureau Canada

News release

Competition Bureau calls to take down regulatory barriers around shared kitchens and food hubs

March 19, 2026 – GATINEAU (Québec), Competition Bureau

New report says improving access to shared spaces would help small food producers compete

March 19, 2026 – 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.

Quotes

“Food and beverage producers contribute to food security, regional economic development and consumer well-being. That is why we encourage policymakers to take these recommendations into consideration. Shared kitchens and food hubs can help open the market to small producers, including new players. Consumers and businesses deserve the benefits of competition, especially in Canada’s food sector.”

Jeanne Pratt
Acting Commissioner of Competition

Quick facts

Food production in Canada is governed by multiple levels of regulation. Shared kitchens must meet municipal zoning rules, provincial health regulations, and federal requirements for certain types of food. Requirements on kitchen layout, equipment, storage, and sanitation may also vary within the same province.
Businesses that want to sell products in more than one province must comply with the federal Safe Food for Canadians Regulations, which govern preventive control plans, traceability, and licensing.
In November 2025, federal, provincial and territorial governments signed the Canadian Mutual Recognition Agreement to recognize goods approved for sale in any other province as approved in their own. However, food and alcohol are excluded from that agreement.

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Contacts

Media inquiries:
Media Relations
Email: media-cb-bc@cb-bc.gc.ca

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The Competition Bureau is an independent law enforcement agency that protects and promotes competition for the benefit of Canadian consumers and businesses. Competition drives lower prices and innovation while fueling economic growth.