Introduction: The Importance of SMBs in the Canadian Economy

Canada’s economy relies heavily on small and medium-sized businesses (SMBs), which form the backbone of employment, innovation, and local communities. According to the latest data from Innovation, Science and Economic Development Canada (Key Small Business Statistics 2025, based on December 2024 figures), there were approximately 1.10 million employer businesses in Canada. Of these, small businesses (1–99 employees) accounted for 1.08 million or 98.2%, medium-sized businesses (100–499 employees) numbered around 16,953 (1.5%), and large businesses made up only 0.3%. Thus, over 99.7% of employer businesses qualify as SMBs.

Small businesses alone employed about 5.8 million people (roughly 46.6% of the private labour force), with medium-sized businesses contributing another significant portion, meaning SMBs collectively support nearly two-thirds of private-sector jobs. These figures exclude non-employer businesses (such as sole proprietors), so the total number of SMBs is even higher under broader definitions.

SMBs in the Restaurant and Café Sector

Within this landscape, the accommodation and food services sector (including restaurants, cafés, bars, and related services) is overwhelmingly dominated by SMBs. Recent industry reports indicate there are tens of thousands of establishments in this category. For instance, full-service restaurants alone numbered around 78,000–79,000 businesses in recent years, with the broader foodservice industry encompassing over 87,000 eating places (including limited-service and other categories). The vast majority—over 97–98%—are small businesses, often with fewer than 20 employees (and many independent cafés or neighbourhood spots with under 5).

Restaurants Canada and related analyses highlight that the sector includes roughly 6,500–8,000 dedicated coffee shops and snack venues, many of which are independent SMBs or small local chains. The industry generates substantial revenue (approaching or exceeding CAD $100–120 billion annually in recent estimates) and employs nearly 1.2 million Canadians. However, it faces intense competition, thin margins, inflation, labour shortages, and economic pressures. Forecasts suggest challenges ahead, with potential net closures of around 4,000 restaurants in 2026 due to rising costs and shifting consumer behaviour.

Challenges Facing Restaurant and Café SMBs

These businesses operate in a highly competitive environment, impacted by economic factors such as food and labour cost increases, affordability concerns among consumers, and post-pandemic shifts. Many operators report operating at a loss or break-even, with reduced dining frequency due to household budgets. Despite resilience in recovery, the sector remains vulnerable, making technological adaptations essential for survival and growth.

The Impact of Communication Technologies Like WiFi on Business Progress

Offering free or high-speed WiFi has become a standard customer expectation in cafés, coffee shops, and casual restaurants. Many patrons—especially remote workers, students, digital nomads, and younger generations—view these venues as “third places” for work, study, or socializing. Reliable WiFi significantly increases dwell time (the length of customer stays), encouraging longer visits that often lead to additional purchases, such as extra drinks, snacks, or meals. Industry observations and studies suggest this can boost per-customer or per-table spending by 20% or more in equipped locations.

WiFi also drives operational efficiencies for SMBs:

• Modern point-of-sale (POS) systems depend on stable internet for real-time payments, inventory management, and integration with delivery platforms (e.g., Uber Eats, DoorDash).
• Online ordering, digital menus, and reservation tools have become essential, with many small operators relying on third-party apps to expand reach.
• Customers frequently share photos, reviews, and check-ins on social media, providing free marketing and enhancing online reputation.
• WiFi analytics tools help owners understand behaviour patterns, optimize seating, and run targeted promotions.

In competitive urban markets like Toronto, Vancouver, and Montreal, robust WiFi differentiates businesses and builds loyalty. Even in smaller or rural areas, strong connectivity improves online visibility, enables e-commerce features (e.g., takeout orders or gift cards), and levels the playing field.

Although infrastructure costs (routers, mesh networks, bandwidth) pose challenges for small operators, the return on investment is typically strong through higher foot traffic, increased average cheques, and streamlined operations.

Conclusion: The Future of SMBs in a Digital Era

SMBs—particularly in the restaurant and café sector—number in the tens of thousands across Canada and remain vital to the economy. Technologies like WiFi have evolved from optional perks into competitive necessities, enhancing customer satisfaction, extending visits, simplifying operations, and supporting overall progress. As digital expectations continue to grow, SMBs that strategically adopt communication technologies are best positioned to thrive in an increasingly connected market.