The organization that represents eateries across the country says establishments are still feeling the negative effects of the pandemic, six years later.
There have been several restaurants in Nova Scotia that have publicly expressed having a hard time in recent weeks including the Red Knot Bakery in Tatamagouche and Taquitos Cocina de Mexico in Bedford.
Smitty’s in Clayton Park closed suddenly earlier in the week; it had been in that location for 24 years.
Janick Cormier, vice president of the Atlantic Canada division of Restaurants Canada says the unfortunate reality is, the industry never recovered from the closures in 2020 through 2021.
“A lot of operators who were able to keep their doors open through that time, did so by getting loans to pay their staff, their rent and other operating costs,” says Cormier. “Now, they have to repay those loans, but they’re also faced with a double digit increase in operating costs across the board.”
She says, this includes labour, utilities, rent and insurance.
“This comes at a time where Canadians are also seeing an increase in their cost, so they are cash strapped and cutting back on discretionary spending,” adds Cormier.
When faced with economic constraints, says Cormier, the number one thing families cut from their budget is restaurant meals, with takeout a close number two.
What they need to keep open
To stay open, restaurants need to get creative.
Cormier says this even includes things like switching to less expensive ingredients like choosing beef over chicken and streamlining their menus.
“The harsh reality is, a lot of the crowd favourites, the bestselling items, are just simply not sustainable,” explains Cormier. “So, restaurants have to take some of those off of those menus because they’re simply not able to turn a profit with those dishes.”
This will involve seeing restaurant operators being more hands on than they used to be.
How can the public help?
Eat out now and then and support local.
“Canadians may have moved on from the pandemic…we have not. So, it’s very much the same asks. Please support if you can,” says Cormier.
Government help
Help from the government would also be beneficial.
Cormier says one way to do this is to increase discounts on alcohol purchases and cutting HST like over the holidays in 2024.
“When we removed the tax last year, transactions were up. Foot traffic was up. Employment was up. We added 67,000 jobs in the industry,” adds Cormier.
She says they want to see tax cut from restaurant meals permanently.
“Canadians are really worried about their economic future. They’re really tightening up their belts, they reticent to spend money where they don’t have to and it’s having a lasting impact on our industry,” says Cormier.
