Restaurant Business Banking Canada 2026 — Best Accounts for Food Service

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Best Banks for Canadian Restaurants

Bank	Cash Deposits	Merchant Services	Payroll	Best For
TD Business	Yes — wide branches	TD Merchant Solutions	Yes	High-volume full-service restaurants
RBC Business	Yes — coast to coast	RBC Merchant Services	Yes	Restaurant chains, franchises
BMO Business	Yes	BMO Merchant Services	Yes	Independent restaurants
Scotiabank	Yes	GlobalPayments via Scotia	Yes	Multi-location restaurants
Credit Union	Yes — local branches	Via partnership	Yes	Local community restaurants

Note for restaurants: Online-only banks like EQ Bank and KOHO do not accept cash deposits — making them unsuitable as a primary account for restaurants. A Big 5 or credit union account is essential for cash-handling food service businesses.

GST/HST on Restaurant Sales — What You Must Know

Restaurant taxation in Canada is complex. Food service businesses must track multiple GST/HST rate categories:

Zero-Rated Food (0% GST/HST)

Most basic grocery items (bread, milk, vegetables, meat)
Some takeout food sold cold or unheated

Taxable Restaurant Food (5% GST or full HST)

All food sold in a restaurant where seating is provided
All hot food (takeout included)
Catering services
Beverages other than unflavoured milk or 100% juice (over 600ml)
Alcohol — always taxable at full HST/GST rate

Restaurant POS systems should be configured to automatically apply the correct tax rate to each item category. Your business bank account will receive net sales after tax collection — remit all collected GST/HST to CRA on the appropriate schedule.

Restaurant Payroll Banking

Restaurants are among Canada's largest employers of hourly workers, making payroll management a critical banking function:

CRA payroll account: Register for a payroll deduction account (RP number) through My Business Account. All source deductions (CPP, EI, income tax) must be remitted to CRA on schedule.
Tip reporting: CRA requires restaurant employers to report tips that are controlled by the employer (allocated tips, mandatory gratuities). Direct tips received entirely by employees don't require employer remittance but must be reported as employee income.
Payroll software: Use ADP, QuickBooks Payroll, Ceridian, or Wagepoint — all of which integrate with major business bank accounts via direct debit for payroll funding.
Bi-weekly payroll cycle: Most Canadian restaurants run bi-weekly payroll. Ensure your business account has sufficient balance before each payroll run to avoid NSF fees.

Restaurant Equipment Financing

Kitchen equipment, refrigeration, POS systems, and leasehold improvements represent major capital expenditures for restaurants. Financing options available through Canadian business banks:

Canada Small Business Financing Program (CSBFP): Government-guaranteed loans up to $500K for equipment and leasehold improvements. Available through most Big 5 banks. Ideal for new restaurant openings.
Equipment leasing: Many banks offer equipment lease financing — keeping equipment off your balance sheet and preserving working capital.
Business line of credit: Revolving credit for seasonal cash flow gaps — common in restaurant businesses with seasonal fluctuations.
Commercial mortgage: For restaurant owners purchasing their building or long-term leasehold improvements exceeding $500K.

Frequently Asked Questions

Can a restaurant use EQ Bank as its primary business account?

No. EQ Bank doesn't accept cash deposits, which is essential for restaurants. Restaurants need a Big 5 bank or credit union with branch-level cash deposit access.

What is the GST/HST rate on restaurant meals in Canada?

All food consumed in a restaurant where seating is provided is taxable at the full GST (5%) or HST rate (13% in Ontario, 15% in Atlantic Canada, etc.). Cold takeout food may be zero-rated in some circumstances — consult a CPA familiar with food service taxation.

How should a restaurant handle tip income for banking purposes?

Controlled tips (added by employer to bills, then distributed) should flow through the business account and be tracked for T4 reporting. Direct tips paid by customers to servers are the employee's income and don't flow through the business account.

What merchant services do Canadian banks offer restaurants?

TD Merchant Solutions, RBC Merchant Services, and BMO Merchant Services all offer POS terminals, mobile payment processing, and integrated POS-to-banking reconciliation. Rates vary — negotiate based on your monthly processing volume.