POST Online Media Lite Edition



 

80 percent of restaurants in Canada need federal subsidies expanded to survive fall and winter

Christian Fernsby |
Restaurants Canada is calling on the federal government to increase and extend the wage and rent subsidies into 2022 to ensure foodservice businesses can pull through the ongoing pandemic.

Article continues below




“The fate of Canada’s 90,000+ restaurants is still uncertain,” said Restaurants Canada President and CEO Todd Barclay.

“Most have been losing money or barely breaking even since coming out of initial lockdown last year, and at least 10,000 establishments have already closed. The rest need government support to help them survive the fall and winter so they can continue feeding our recovery.”

According to survey data from Restaurants Canada:

• 8 out of 10 restaurants have been operating at a loss or barely scraping by with a profit margin of 2% or less throughout the entire pandemic

• nearly half of all foodservice businesses have been consistently losing money ever since the first wave of lockdowns ended last year.

• 7 out of 10 restaurant operators are still receiving the federal wage and/or rent subsidy, and if these critical sources of support end this month:

• Nearly 80% said they will struggle to keep existing staff/have to cut staff hours.
• More than half said they will struggle with hiring back staff/hiring new staff.


What to read next

U.S. median home price appreciation decelerates in Q2 to slowest pace in two years
Holiday shopping spend forecasted to be down
Global smartphone sales value in 2016 increased to $426 billion