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In many parts of the country, restaurants, pubs and cafes have started to reopen their doors after lengthy closures due to COVID-19.
It’s been a new normal for these establishments, as they’ve all had to readjust the way they do business, and Restaurants Canada says that the majority are operating at a loss.
“Restaurateurs are eager to help rebuild the economy and revive neighbourhoods, but they’re going to need continued assistance from (the) government to remain operational under ongoing restrictions,” said David Lefebvre, VP of Restaurants Canada.
According to a Restaurants Canada survey, more than half of respondents who have reopened their doors are still operating at a loss.
When asked how long it’d take to return to profitability, they gave the following answers:
- 6 months of less: 13%
- Between 7 months and a year: 31%
- Between a year and 18 months: 36%
- More than 18 months: 20%
Unsurprisingly, more than 90% of respondents are reporting lower sales year-over-year and Restaurants Canada is calling for the government to step in in a few ways.
The first is assistance with labour costs and continuing to keep the wage subsidy in place until restrictions are lifted.
In addition, Restaurants Canada believes the 75% wage subsidy should be reduced gradually and not just suddenly dropping to zero.
The organization also believes that more foodservice businesses should be eligible for rent relief and that a moratorium on evictions should remain in place for as long as restrictions continue.
Finally, Restaurants Canada believes the government should help with cash flow and rising debt levels, which would include all businesses being able to access more than $40,000 in interest-free loans with at least 75% of it being forgivable.
“Working together with Restaurants Canada, all levels of government can help foodservice businesses continue playing an integral part of the social and economic fabric of communities across the country,” says a statement from the organization.
You can learn more by clicking this link.
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