New data shows that Canadian bar and restaurant sales increased by 6.5 per cent monthly in March to $6.8 billion, reports the Canadian Press. Year-over-year, sales were up 35 per cent compared with March 2021 and 62.9 per cent compared with March 2020.

They were also 4.4 per cent above January 2020 levels and 4.9 per cent higher than March 2019, the first time that a monthly year-over-year sales total has eclipsed a corresponding total seen before the pandemic.

A loosening of restrictions led to improved sales in March at full-service restaurants (climbing seven per cent above pre-pandemic levels), while sales at quick-service restaurants held steady, up seven per cent above January 2020 levels.

Ontario saw the largest increase in dollar terms, while Manitoba saw the biggest percentage increase.

However, the increase in sales has coincided with surging inflation and rising food costs across the country. Prices for restaurant food were up 5.4 per cent in March 2022 compared with March 2021, according to Statistics Canada, while prices for alcoholic beverages served in licensed establishments increased 3.6 per cent in the same period.

In real terms, quick-service restaurant sales were flat in March 2022 compared to January 2020 while sales at full-service restaurants were down by 1.6 per cent. Real sales are still down significantly at caterers (-24.7 per cent) and drinking places such as bars and nightclubs (-18.6 per cent), reports Restaurants Canada.

Still trouble ahead

Chris Elliot, a senior economist for Restaurants Canada, warned that while sales are up, restaurants are facing higher operating costs.

Elliot said that in response to a Restaurants Canada survey conducted from April 5-15, six out of 10 restaurant operators in Ontario said their businesses are still losing money or barely scraping by.

“While there has been an initial boost in sales due to pent-up consumer demand, we may see a moderation in spending during the summer as a result of the rising cost of living,” Elliot told the Canadian Press. He said the survey identified food costs, labour costs and shortages, and supply disruptions as the greatest challenges facing restaurant operators.

Meanwhile, Restaurants Canada’s REACT Survey found that 26 per cent of Canadians said they would dine out less often in June at a full-service restaurant, deterred by rising prices, compared to 18 per cent that said they expect to dine out more often. Similarly, 24 per cent of Canadians said they expect to dine out less at a quick-service restaurant in June compared to 11 per cent that would order more often.

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#DineInDoOver is a nationwide movement that not only addresses the need to redo, or even do for the first time, the moments missed due to pandemic, but also supports the foodservice industry on its road to revival. By dining in to celebrate missed birthdays, team building events, promotions, engagements, anniversaries, holidays and more, Canadians can get back to benefiting from in-person communication and connection, while supporting the revival of an industry that has been devastated.

“Restaurants have long been a staple for our communities, a place to gather, connect and create memories,” says Roy Little, CEO, Restaurants Canada. “Unfortunately, the pandemic’s restrictions and closures have left restaurants struggling to re-establish their business, even as those restrictions are being lifted. COVID-19 has been devastating for an industry that depends deeply on the traffic and business from social gatherings, special occasions and events.” 

While many in the industry were able to pivot amidst rolling lockdowns, turning to alternative revenue streams such as take-out to survive during the pandemic, an estimated 13,000 Canadian foodservice establishments have already permanently closed their doors since March 2020. With the latest government support and relief measures due to expire, unfortunately thousands of businesses still remain at risk of closing. A survey conducted by Restaurants Canada in February 2022 shows eight out of 10 restaurants have taken on debt due to COVID-19 with two thirds of these businesses requiring at least a year and a half to recover.

Even with lifted restrictions across the country, Restaurants Canada will continue to advocate as the industry is still in need of both government and consumer support. The #DineInDoOver campaign aims to inform Canadians that their help is still needed to ensure the revival of the industry, and to keep vulnerable establishments that have been serving our communities for years from closing. The campaign also offers a glimmer of hope; those lost memories don’t need to be lost for good.

Many Canadians and businesses have had to postpone, or worse cancel, milestone events. By bringing Canadians together across the nation, this initiative will not only help revitalize and kick-start in-person socialization, but also support the revival of the foodservice industry.

In addition to consumers and support from businesses, Restaurants Canada is also calling for restaurant owners and operators to spread the word about the campaign by downloading the #DineInDoOver Toolkit, joining the conversation on social media, amplifying and creating additional awareness to keep restaurants at the heart of incredible connections and memories.

“It’s time for our nation to get back to the moments we’ve missed in a safe way, and benefitting from those in-person memories we’ve all been waiting for,” adds Roy Little, CEO, Restaurants Canada.

For more details, visit www.DineInDoOver.ca.

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“Dear Premiers:

We are writing to ask for your immediate help. With many public health officials ringing Omicron alarm bells across Canada, many small businesses are, once again, deeply affected. Most provinces have now announced a fresh round of restrictions, on top of the ongoing restrictions like vaccine passport requirements that exist across the country. In addition, the panic that has set in among the public has meant that, even in areas that have not added fresh restrictions, many more consumers are staying home, cancelling reservations and events and doing their shopping online.

Even before Omicron fears, nearly two-thirds of small firms across Canada have not seen sales return to normal levels. And of this group, nearly a quarter report their business may fail within the next six months.

The need for significant and immediate financial help is critical. You may have been led to believe that with the passage of Bill C-2, the federal government has renewed the wage and rent subsidy system that has helped tens of thousands of businesses survive the pandemic so far. This is incorrect. The new federal support programs are incredibly limited in scope. CFIB’s pre-Omicron data showed that 80 per cent of small businesses in need of help will no longer qualify. The more generous Tourism and Hospitality Program requires a 40 per cent loss both in the current month and over the past 12 months. And the Hardest Hit Recovery Program for other businesses requires a 50 per cent current and 12 month loss to qualify. Consider the following:

• A restaurant that has a 35 per cent revenue decline will now receive zero support from Ottawa.
• A retailer with a 45 per cent revenue decline will now receive zero support from Ottawa.
• The federal “lockdown” support, which increases the amount of subsidy, is only available to businesses that have much of their operations fully locked down. Those facing a 50 per cent capacity restriction, are ineligible.

Put frankly, tens of thousands of small firms across Canada will receive no support from governments while government restrictions dramatically reduce their ability to serve customers and public health warnings frighten many consumers into staying home.

We urge you to ensure public health officials do not heighten the panic and fear among the public. We urge you to reconsider new or existing restrictions. We urge you to lift restrictions at their earliest opportunity.

But as Omicron panic has now set in and consumers are cancelling travel, events, reservations and shifting purchases once again to large online retailers, more than anything, we urge you to ensure proper support funding is in place to help small businesses survive. We need you to:

1. Immediately announce a fresh round of provincial small business grants.
2. Urge the federal government to return the wage and rent subsidy to the levels used in the spring of 2021 (available to all firms on a sliding scale as a percentage of their revenue losses to a maximum of 75 per cent).
3. Urge the federal government to revise extra “lockdown” supports to ensure they are available to businesses facing significant capacity restrictions.
4. Urge the federal government to reopen the Canada Emergency Business Account (CEBA) loan program with a larger loan, a larger forgivable portion and delayed repayment requirements.
5. Urge the federal government to ensure new firms are able to qualify for all programs.

As rapid action is critical, we urge you to push both privately and publicly for these measures. CFIB and Restaurants Canada stand ready to work with you in the days ahead.

Sincerely,

Dan Kelly
President and CEO
CFIB

Todd Barclay
President and CEO
Restaurants Canada” 

SOURCE Canadian Federation of Independent Business

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Restaurant after restaurant has announced reduced hours and temporary closures due to a lack of staff, and the problem isn’t just affecting food service. Other businesses like the TD Bank in Bala and Dynacare Laboratory and Health Services Centre in Bracebridge have also closed due to staff shortages, but the hospitality industry has been hit particularly hard by the shortage as well as the pandemic in general. Tanya Merton, co-owner of Touchstone Grill, said they were unable to take in their usual capacity this summer and it all comes down to a lack of staff.

“I could’ve made double or triple the amount to get us back on our feet after COVID, but I couldn’t do that with no staff,” Merton said. “My staff went above and beyond and worked seven [or] 14 days in a row, just to try and make back their money too from not being able to work for months with COVID.”

Merton points to the area’s lack of affordable housing as the primary reason behind the shortage. Muskoka is getting hammered with out-of-town visitors as more and more people are being priced out of the region, she said.  

A Housing And Staffing Crisis In One

Though the housing crisis in Muskoka existed before the pandemic, COVID has put an additional strain on the issue, causing the community and the tourism industry to suffer, she said. As students leave their summer jobs and go back to school, she’s concerned about the additional stress on local businesses through the fall and winter.

“Now we’re really seeing the crunch on how many people have had to move out of Muskoka because they can’t afford it,” she said. “The bidding wars that are going on in Muskoka over buying houses, they’re paying way more than what it’s actually worth just to get out of the city and come here because they feel safer, but people that have been born and raised in this community can’t stay here. They’re being forced out.”

One solution to help address the shortage could be bringing a culinary program to Georgian College’s existing campus in Bracebridge, Merton said. People who already live in the community could study culinary arts without going to Barrie and local businesses could hire students for apprenticeships and other placements.

But more than that, she feels housing needs to be addressed. Municipalities need to work together to fix the lack of affordable housing and make use of empty units, Merton said, especially as businesses continue “screaming for staff.”

Alison Young is the restaurant chef at Riverwalk Restaurant in Bracebridge and also works alongside executive chef David Friesen at his other restaurants, Pasta Tree & Smokehouse and The Oven. They laid off 55 people at the beginning of the pandemic and now with students going back to university, they’re left with just five staff members, Young said. 

The lack of kitchen staff in particular led them to open just The Oven for the summer and keep Pasta Tree & Smokehouse limited to takeout as the Riverwalk undergoes repairs. When construction is complete, however, the Riverwalk’s reopening plans will also depend on their ability to find staff. 

In a recent survey from Restaurants Canada, an advocacy group representing the foodservice industry, 80 per cent of respondents said they were struggling to hire back-of-house staff and 67 per cent reported difficulties in filling front-of-house roles. Ads seeking staff for the Pasta Tree have been up for months with no results, and due to the issues with housing, they can’t source employees from outside Muskoka. The restaurant needs at least five people in the kitchen, and as it stands, they have just one.

“I’ve never seen a year like this before. Ever,” Young said. “If people want to move, there’s nowhere for them to move. We had three employees that we couldn’t hire because they couldn’t find places to live up here, and one of our employees right now got an apartment in Toronto and she’s going to be commuting.”

Hospitality Industry Braces For Fall

Though the end of summer might seem like a welcome reprieve, Young said they’re just as busy and there’s no sign of business slowing down. She’s hoping the closure of seasonal resorts as well as children returning to school will provide more options for sourcing staff as seasonal staff seek other work and parents rejoin the workforce.

Along with a shortage of back-of-house staff, the way customers have treated front-of-house employees played a role in keeping the Pasta Tree’s dining room closed for the summer. Young said it’s easier to disappoint people by having them not come in at all rather than disappoint them when they get there and have them direct that frustration at their staff.

“All of our university students came back to me and said, ‘We’ll serve if you want to,’ and we said, ‘No, we can’t open the restaurant and have you be treated the way you were treated,’” Young said. “They’ll come back next year when hopefully things are a lot better.”

Treatment of staff throughout the shortage and pandemic has been a widespread issue. Local businesses like The Oar & Paddle and Momma’s Bear Ice Cream and Sweets have put out statements asking customers to be kind to their staff, and much of the conflict has come from the enforcement of COVID restrictions and regulations.

“People did not want to abide by the government mandated rules,” Young said. “We didn’t put them in place. We found it really difficult just because customers were blaming our staff for mandating masks and things like that. It was really upsetting for us because everybody was taking out their frustrations on staff.”

A Statistics Canada study from 2018 found that the hospitality industry offered lower job quality than other industries, falling short in areas such as training opportunities, social environment, and income and benefits. Those drawbacks coupled with COVID-related grievances have led many people to leave the industry altogether.

Employment in accommodation and food services was down 18.7 per cent in July 2021 compared to February 2020, according to Statistics Canada’s Labour Force Survey. That means nearly 230,000 fewer people are working in the hospitality industry now than in the beginning of the pandemic, accounting for over one-third of the difference between current and pre-pandemic employment.

Asking For Compassion And Compliance 

With proof of vaccination requirements in effect as of Sept. 22, Young and her team are terrified to enforce the mandates as protests happen at hospitals across the province. Businesses could face charges under the Reopening Ontario Act if they choose not to follow suit, and though Young supports using proof of vaccination as a way to keep people safe, the burden on her staff to implement the regulations remains a concern. 

Prices could go up since businesses have to designate staff to check proof of vaccination, Young said, and the continued aggression from naysayers could push more people out of the industry. To help protect their staff, anyone who wants a reservation at The Oven going forward will have to provide their email address and agree to follow the guidelines.

“We’re going to email them our policies and procedures and we’re going to say, ‘Here they are upfront, if you choose not to abide by them, you’re more than welcome not to join us,’” Young said. “And we’ve done this for years, if anyone mistreats our employees, they’re asked to leave.”

Though increased access to housing is part of the equation, Young said the hospitality industry also needs an overhaul. Changes like increased wages and automatic gratuity could help, but more than that, she hopes there will be a major shift in respect toward servers, kitchen staff and others in hospitality.

“In every industry, people need compassion, and they need to learn that people choose to do this because they enjoy doing it,” Young said. “People serve because they like to, not because they have to nowadays, and it’s pushing people out of the industry. The lack of respect and treatment of people is crazy.”

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Working together as part of a Restaurant Survival Coalition, they are demanding an exemption from the scheduled phase-out of the rent and wage subsidies for the highly affected foodservice sector. This continues to be the top measure that Restaurants Canada is advocating for as part of a critically needed Restaurant Survival Support Package.

“Even with most provinces moving forward with reopening plans, restaurants across the country will still be operating at reduced capacity for the next few months,” said Restaurants Canada President and CEO Todd Barclay. “This is not the time to start reeling in the lifeline. Most restaurants have been losing money or barely scraping by nearly every day of the pandemic and will need at least a year to return to some semblance of normal. Half our industry will face risk of closure if government support is scaled back too soon.”

Canadians are calling on elected officials to save their local restaurants

Restaurant operators are innovative and resourceful, but the COVID-19 crisis has stretched their resiliency to the limits. According to survey data from Restaurants Canada:

• 8 out of 10 restaurants have been operating at a loss or barely scraping by throughout the entire pandemic.
• Nearly half (45%) of all foodservice businesses have been consistently losing money for more than a year.

If the rent and wage subsidies are scaled back starting July 4, most restaurants will struggle to keep paying staff and suppliers and might have to consider closing down for good.

Fighting back against this unwanted reality, Canadians are calling on their elected officials to help keep their local restaurants in the picture: Hundreds of postcards are currently on their way to members of Parliament across the country, and Finance Minister Chrystia Freeland in Ottawa, demanding an immediate change of plans.

Anyone who wants to join the Restaurant Survival Coalition and help save local foodservice businesses can visit SupportRestaurants.ca to get started by sending a postcard of their own.

Here are a few excerpts from the many postcard messages sent so far from restaurant customers, industry professionals and suppliers across the country:

We have managed to survive so far, but with the latest setback and still at half capacity with social distancing… we need the wage subsidy and rent subsidy through the summer to help us through. Instead of paying down debt, I’ve added on debt. A big burden for the future to come. — Saskia Geerts, Owner, Sydney Street Pub, Digby, Nova Scotia

The Lower Deck is a family owned business since 1974. The pandemic has impacted our business dramatically. The decline in the tourism sector combined with the cancellation of cruise ship visitors for two consecutive summer seasons is devastating to our business. — Mike Condy, Owner/Operator, The Lower Deck, Halifax, Nova Scotia

This restaurant has been around for 11 years. We are a neighbourhood pub with lots of regulars who have helped us survive during this difficult time. But it is not enough. If we close, these customers lose their second home staff lose their jobs and I lose my business that I put so much into. — Zoey Dassios, Owner, Chicago Pub & Billiards, Kitchener, Ontario

We’ve been part of the Yonge & Dundas community for 30 years, with generations of staff and customers that have come and gone. The subsidies have allowed us to keep going during COVID, but we need dine-in at 70% to be able to stay afloat. Subsidies need to keep going until then. — Alan Liu, Managing Director, Salad King, Toronto, Ontario

We employ 1,000 people, we purchase 20,000,000 in food supplies many from local farmers in Ontario. We are a pillar in the community supporting charities throughout the province. We have been in business for 50 years. We need help to continue for another 50. — Peter Higley, President, Pickle Barrel, Toronto, Ontario

I’ve been doing this all my life, this is my retirement. Over 40 years I’ve been giving work to students and many other people. — Steve Kandilakis, President/Owner, Steve’s Bistro, Winnipeg, Manitoba

SOURCE Restaurants Canada

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