TORONTO - Second-generation Canadian business owners are grappling with significant economic challenges as they strive to maintain their family businesses and honor their parents' legacies. The struggle is particularly evident in the restaurant industry, where rising costs and shifting consumer behaviors are testing the resilience of long-standing establishments [1][2].

Jeanette Liu, co-owner of Yueh Tung, a downtown Toronto restaurant, exemplifies this struggle. The establishment, founded by her parents who immigrated from India in the early 1980s, has been a cornerstone of the community for decades. 'My dad worked seven days a week. He only took one day off during Christmas Day, only for the morning, and then he would go right back into work by himself to prep for the next day,' Liu recalled [3].

However, the landscape for these family-owned businesses has changed dramatically. One of the most significant challenges is the rising operational costs, particularly due to increased tariffs. These escalating expenses have forced many businesses to reconsider their pricing strategies, potentially affecting their competitiveness in the market [1][2].

The COVID-19 pandemic has further complicated matters by altering consumer habits. As businesses adapt to these changes, they face uncertainty about the long-term sustainability of their operations. This shift in consumer behavior, coupled with increased operational costs, has created a perfect storm for many second-generation business owners [1][2][3].

Despite these challenges, many second-generation Canadians, like Liu and her sister Joanna, have chosen to continue their family businesses. This decision often comes with the added pressure of preserving their parents' legacy while navigating a vastly different economic landscape [4][5].

The situation reflects a broader trend across Canada, where immigrant-founded businesses face a critical juncture as they transition to the second generation. These businesses, once symbols of the 'Canadian dream,' now find themselves at a crossroads, balancing tradition with the need for innovation in a rapidly changing economic environment [6].

As these second-generation Canadians weigh the cost of carrying on their family businesses, they're not just considering financial factors. They're also grappling with the emotional weight of their parents' sacrifices and the cultural significance these establishments hold in their communities. The coming years will likely determine whether these family legacies can adapt and thrive in the face of ongoing economic challenges.