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

GATINEAU, QC, March 19, 2026 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.

Quote

"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.

Related products

• A recipe for competition: How shared kitchens and food hubs can strengthen competition and small business growth in Canada's food sector

Associated links

• Promoting Fair Competition in the Restaurant and Mobile Food Industry
• Safe Food for Canadians Regulations
• Canadian Mutual Recognition Agreement

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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.

SOURCE Competition Bureau