For Canada’s restaurants, recovery hinges on support from communities and government

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As news about COVID-19 turns increasingly, if cautiously, optimistic, businesses in many sectors have been able to resume full operations. Yet one key industry is still struggling to make it to the finish line: for many of Canada’s foodservice venues, subsidies are becoming inaccessible, inflation is running rampant, and getting people back to work is proving challenging.

“There’s still a steep hill to climb for this industry,” says Roy Little, interim president and CEO of Restaurants Canada. “We rely on communities to continue to support us and on governments to realize that we are an essential part of the economic engine, that we’re worth investing in.”

The scale and diversity of Canada’s restaurant sector is impressive. Before the pandemic struck, the foodservice industry was the country’s fourth-largest source of private-sector jobs. Restaurants also play an important role in the social and economic fabric of Canadian communities. About 95 cents of every dollar spent at a restaurant goes back out into the economy in the form of wages and rent, as well as purchased goods and services from various contractors. This kind of impact inspires loyalty, and Mr. Little believes community support has been essential in helping restaurants survive thus far.

“We’re very thankful for that,” he says. “And we hope people will continue to support us as we try to figure out how to rebound from the catastrophic last two years.”

Restaurants are still navigating challenges resulting from restrictions put in place due to the coronavirus pandemic. “Tens of thousands of businesses had to close. And most restaurants that are still in operation had to take on an almost unmanageable amount of debt,” he says. “Now we have to come together and find ways to catalyze recovery.”

One source of optimism stems from “the ability of people to pivot from their core business to find new ways to generate revenue – not just to support themselves, but to support their employees, staff and community,” says Mr. Little. “Yet people in the foodservice industry are exhausted from facing these big challenges over such a prolonged period of time. And they realize that they have to dig deep because there’s so much more work to be done.”

While there is some pent-up demand for socializing and eating out, many Canadians remain hesitant. After all, for the last two years, they have periodically been bombarded with public health messages warning them about the dangers of going out and advising them to stay home, he says. “We hope that governments and health authorities will help us spread the message that restaurants are places where we can safely congregate with friends and family and celebrate the meaningful milestones in our lives.”

The foodservice industry is one of the most regulated sectors in the country, and “restaurants have done everything that has been required – and more – to ensure the health and safety of staff and guests; for example, by investing in upgrades and personal protective equipment,” says Mr. Little, who hopes more public officials will follow the example of British Columbia’s provincial health officer, Dr. Bonnie Henry, who has commented on the safety of dining in restaurants thanks to the COVID-19 protocols they have implemented.

Over the course of the pandemic, the restaurant community has come together to offer mutual support and speak for the sector in one united voice, and Mr. Little believes it’s time governments listen.

“Yes, government support has been helpful, but without community support, many more restaurants would have given up by now,” he says. “Still, they desperately need the federal government to expand the eligibility requirements for the new Tourism and Hospitality Recovery Program. Asking restaurants to prove at least a 40 per cent revenue decline leaves most restaurants out in the cold. Running a restaurant with even 10 per cent less revenue is already very difficult in the face of unprecedented increases in operating costs.”

Restaurants Canada has been outspoken in inviting governments to the table to discuss a better way for moving forward. “The access to support subsidies through the Local Lockdown Program has been a lifeline for our industry during this latest wave, but that access is only temporary,” says Mr. Little. “Without sustained commitment from the federal government to expand access to these crucial programs, many restaurants won’t make it through the winter.

“While the tantalizing prospect of loosening restrictions across the country is either here or coming, many restaurants still carry the weight of the past two years’ shutdowns,” he adds.

Advertising feature produced by Randall Anthony Communications with Restaurants Canada. The Globe’s editorial department was not involved