Last week’s abrupt move to shut down all restaurant dining so soon after easing restrictions has cost Ontario’s restaurant industry more than $100 million in reopening and closing costs alone.
In an open letter to Premier Doug Ford, Restaurants Canada and the Ontario Restaurant Hotel & Motel Association are calling for the following actions to reverse the devastating impacts of dining closures:
- For public health measures to be fair and effective, all industries must be impacted equally.
- Patio dining should remain available as an alternative to private gatherings, as safe options for enjoying outdoor activities are important for people’s mental health.
- All restaurants should be supported financially to mitigate rising debt in the following ways:
- Further funding through the Ontario Small Business Support Grant program and an amendment to the rules to ensure every foodservice establishment is able to receive funding.
- A sector-specific program for covering reopening/closure costs such as wasted inventory, staffing costs, patio setup/takedown, etc.
- An expansion of the property tax and energy cost rebate programs to include all foodservice businesses that have been impacted by Red-Control level restrictions.
- An immediate end to the 6% markup that restaurants pay to buy alcohol from the LCBO.
“Our Ontario members have told us they lose about $10,000 every time one of their establishments is suddenly ordered to shut down dining services,” said James Rilett, Restaurants Canada Vice President, Central Canada. “For a restaurant that’s been through three lockdowns, the province’s $20,000 small business grant hardly covers their closing and reopening costs, let alone compensation for revenue lost while shut down.”
Restaurants Canada and the Ontario Restaurant Hotel & Motel Association have asked Premier Ford for the opportunity to meet as soon as possible to lay the groundwork for a sector-specific recovery plan.