Value Creation >< Value Extraction

Jay Ashton, Canada's Restaurant Guy

Day 26 until the possible tariffs hit Canada’s restaurant industry, and the clock is ticking. Twenty-six days stand between Canada’s restaurant industry and a seismic shift. A twenty-five percent tariff looms, promising to shake the very foundation of our businesses. The air is thick with tension as operators, chefs, suppliers, and customers alike brace for impact. Yet, amid the fear, uncertainty, and raw anticipation, there is something we need to ask ourselves. What are we learning from this moment? What is this pressure teaching us about the core of our industry and about ourselves? This is the time to talk about value creation versus value extraction.

Value creation is what built the restaurant industry. It is the heart of hospitality, the essence of why people gather around a table, and why food is more than just sustenance. It is about delivering an experience, about generosity, about giving more than expected. It is about crafting something that makes people feel alive, connected, and part of something bigger than themselves. Value extraction, on the other hand, is what happens when businesses focus solely on profit at the expense of the people they serve. It is the mentality that leads to cost-cutting in ways that erode quality, reducing portions while raising prices, treating staff like a liability rather than an asset, and seeing customers as transactions rather than relationships. It is a race to the bottom. And right now, as the industry faces one of the biggest financial challenges of the past decade, this distinction has never been more important.

"Hospitality was never meant to be a performance. It is not about impressing people; it is about making them feel seen, valued, and at home." Steve Fortunato

On our recent Late Night Restaurant Show, we had a deep and honest conversation with Steve Fortunato and Michael Beck about what is really happening right now. Steve shared something powerful that resonated deeply. He talked about how hospitality has been hijacked by showmanship and performance and how it has shifted from an act of generosity to an act of seeking validation. "Hospitality was never meant to be a performance. It is not about impressing people; it is about making them feel seen, valued, and at home." He pointed out that when we begin to view customers as critics rather than guests, we alter the very nature of the interaction. Instead of creating value, we are extracting it, trying to squeeze affirmation from those we serve. Michael Beck echoed this and brought up the importance of dropping the masks we wear in business and in life. He described how shedding the need for approval and instead focusing on giving without expectation transforms not just the experience for customers, but for ourselves as well.

The restaurant industry has always been about service, but right now, we need to redefine what service really means. It is not just about serving food. It is about serving each other, our teams, our communities, and, most importantly, ourselves. In these moments of uncertainty, we need to ask: What can we give when we are home with ourselves? What is this challenge asking us to create? How do we come out of this stronger, more resilient, and more connected? Maybe the answer is not just in lowering prices or finding cheaper alternatives. Maybe the answer is in creating an experience so compelling, so undeniably valuable, that customers will pay for it because they feel it is worth it. Maybe we start treating our teams like the lifeline they are, because they are. Maybe we redefine what a restaurant is, what hospitality means, and how we build a sustainable future not just for ourselves, but for everyone who walks through our doors.

If these tariffs hit, it will not just be an economic challenge. It will be a mindset challenge. Those who focus only on extraction, cutting, shrinking, withholding will struggle. Those who focus on creation, on making every plate, every service, every interaction more valuable will survive and even thrive. Think about the restaurants that became legends. Think about the operators who built businesses that lasted. They weren’t focused on nickel-and-diming their customers. They were focused on giving. They were focused on building something that couldn’t be replaced. If we get this moment right, the tariffs won’t define us. Our response will.

This isn’t a time to panic. This is a time to check ourselves. To sit with the hard questions and come up with real, tangible answers. Are we creating real value, or are we just extracting it? Are we building relationships, or just chasing transactions? Are we looking at this challenge with fear, or are we seeing the opportunity to innovate? Because here is the truth: The market will always shift. Costs will always rise. Challenges will always come. What defines us isn’t the crisis itself, it is how we respond. Twenty-six days. The countdown is on. This is our moment to choose who we want to be, and it is also the moment to build your brand in a way that is unforgettable.

"True hospitality is not about transactions. It is about relationships. If you focus on the latter, the former will take care of itself." Steve Fortunato

Customers are going to be more discerning than ever, and in this moment, they will remember who delivered not just food, but a sense of belonging and care. Now is the time to double down on what makes your restaurant unique. Your story, your people, your values—they all matter. Engage with your guests in a way that feels authentic. Be the place that people trust and seek out, not just for a meal, but for a meaningful experience. "True hospitality is not about transactions. It is about relationships. If you focus on the latter, the former will take care of itself." This is where value creation turns into brand building. This is how a restaurant doesn’t just survive, but thrives. The brands that endure are the ones that understand that even in the toughest moments, there is always an opportunity to give more, create more, and connect more deeply with their customers. This is the test we all face right now, and the ones who embrace it with heart and resilience will come out stronger on the other side.