Reopening At A Loss
In a new survey, Restaurants Canada reports that as foodservice businesses continue to reopen their doors to diners, most also continue to operate at a loss, even as the economy is slowly restarting.
Now, Restaurants Canada is calling on all levels of government to ensure they have what they need to survive the road to recovery.
After months of significantly reduced revenue, or none at all, and now facing months of operating at reduced capacity, many restaurants need continued support to survive the road to recovery.
The group’s survey reveals that:
- Six out of 10 said they are operating at a loss.
- 22% of single-unit operators and 15% of multi-unit operators said they are just breaking even.
And for those that have reopened for on-premise dining:
- Fewer than half (31% of single-unit operators and 43% of multi-unit operators) said doing so has had a positive impact on their operations.
- More than a third (47% of single-unit operators and 39% of multi-unit operators) said the impact on their operations has been negative.
- The remainder reported no impact or said it’s still too soon to assess.
Noting that restaurants will need continued support to survive the road to recovery, Restaurants Canada president and CEO, Shanna Munro said: “When restaurants thrive, so do the communities they serve. Our industry wants to contribute to rebuilding the economy and reviving neighbourhoods, but time is running out. Most restaurants have been operating at a loss and accumulating debt for three months already. If they don’t get the help they need to return to positive cash flow, many won’t be able to last much longer.”
Restaurants will need continued support in key areas that include:
- Assistance with labour costs
- Commercial tenant protections and rent relief
- Help with cash flow and rising debt levels
- Feeding Canada’s recovery (www.feedingtherecovery.ca )
Go to https://www.restaurantscanada.org/ .
