Restaurants will need subsidies to survive winter says industry group
A foodservice industry group is calling for a continuation of wage and rent subsidy programs as restaurants look to rebound from COVID-19 restrictions. Restaurants Canada said eight out of 10 establishments across the country will need help getting through the fall and winter seasons.
Rebecca Sawyer, manager of Shooters Downstairs Lounge in Sault Ste. Marie, said government subsidies have helped them keep the doors open and their staff employed.
"Without the wage subsidy program and a number of little supports that we've been able to kind of get our hands into, there's a good chance that we wouldn't even be open right now," Sawyer said. "I do believe that the wage subsidy program going into the new year is almost going to be absolutely necessary, if not closer to the spring."
James Rilett, a vice-president of Restaurants Canada, said the industry in Ontario continues to struggle and that wage and rent subsidies must continue. He said many establishments have taken on a lot of debt over the last 19 months.
"They're now having to service that debt or pay back bills that had just been put on hold," Rilett said. "So all that is coming due and it just makes profitability in the restaurant sector a delayed thing right now."
The industry saw a rebound in the summer, he said, but with patios closing for the season and the vaccine passport system in place, restaurants are once again seeing a drop in sales.
"When the vaccine passport was brought in, about 60 per cent reported decreased revenue, and 40 per cent say it was significant," Rilett said.
Sawyer agrees, saying the passport system has had an impact on her business.
"Despite how soon we saw it coming, it's nothing you can really, truly prepare for," she said. "We're dependent on the public to decide that this is what they are willing to participate with and still come out and support restaurants, bars, and the industry as a whole."
Even after all public health restrictions come down, Rilett estimates it will take up to 18 months for the industry to fully recover. Sawyer contends it will take even longer given the pandemic's impact on the economy as a whole.
CTVNews.ca Top Stories
Breast cancer screening should start at age 40, Canadian Cancer Society says
The Canadian Cancer Society says all provinces and territories should lower the starting age for breast cancer screening to 40.
DEVELOPING Live updates as Stormy Daniels testifies at Trump hush money trial
Adult film star Stormy Daniels is on the stand a second time Thursday as former U.S. president Donald Trump’s hush money case continues in Manhattan. Follow live updates here.
Ontario family receives massive hospital bill as part of LTC law, refuses to pay
A southwestern Ontario woman has received an $8,400 bill from a hospital in Windsor, Ont., after she refused to put her mother in a nursing home she hated -- and she says she has no intention of paying it.
Canadian-Israeli man shot dead in Egypt; claim links killing to Gaza
A Canadian man 'of Jewish Israeli descent' has been shot dead in the Egyptian city of Alexandria in a suspected criminal case, a security source said, while a previously unknown militant group said it carried out the attack in reaction to the war in Gaza.
Here are the ultraprocessed foods you most need to avoid, according to a 30-year study
Studies have shown that ultraprocessed foods can have a detrimental impact on health. But 30 years of research show they don’t all have the same impact.
Ontario man frustrated after $3,500 paving job leaves driveway in shambles
An Ontario man considering having his driveway paved received a quote from a company for $7,000, but then, another paver in the neighbourhood knocked on his door and offered half that rate.
Why these immigrants to Canada say they're thinking about leaving, or have already moved on
For some immigrants, their dreams of permanently settling in Canada have taken an unexpected twist.
Bank of Canada says financial system is stable, but risks remain
The Bank of Canada says the Canadian financial system is stable, but risks remain due to debt servicing costs among households and businesses and stretched valuations of financial assets.
BREAKING Sheldon Keefe out as head coach of Toronto Maple Leafs
The Toronto Maple Leafs have fired head coach Sheldon Keefe. The team made the announcement Thursday after the Original Six franchise lost to the Boston Bruins in seven games in the first round of the Stanley Cup playoffs.