This article, written by Vancouver freelance journalist Shawn Conner presents a downward trend in the Vancouver Restaurant Industry. The Vancouver restaurant industry has always been challenging. However, in the past 5 years, since the Government covid shutdowns, things have gotten a lot worse.
Costs are up, patronage is down and many restaurants are closing their doors. According to Ian Tostenson, president and CEO of the B.C. Restaurant and Foodservices Association (BCRFA); half of restaurants in the province are now either losing money. The remainder are just breaking even.
There are many factors trending right now that are creating big challenges.
Many restaurants are still recovering from the pandemic crisis. Businesses are now trying to pay back their $60,000 (CEBA) Canada Emergency Business Account Loan. More than 885,000small businesses and not-for-profits took out CEBA loans totaling more than $48 billion.
Inflationary money printing, wasteful government spending and carbon taxes have increased the cost of goods especially food costs.
US – Canada Relations due to tariffs have had negative impacts. These include increased costs, supply chain disruption, and a drop in American tourism.
Insurance costs have doubled since pre-covid.
Canada is also experiencing labor shortages and disruptions to its temporary foreign workers program.
Downtown rents stay extremely expensive.
Another hidden burden is the changes to MSP premiums that took place in 2020. The cost shifted from the individual to the business through the employer health tax.
For many, dining out is not essential. When financial times are tough, people can usually find a cheaper way to feed themselves.
But Karri Green (Co-owner and Co-founder of Chambar)reminds us that “Gathering in real life is so Important.” And that “Restaurants are essential to community. We support 27 other sectors. When restaurants go down, the ripple effect is huge —on vendors, suppliers, the local food system. We’re also a gateway for students and creatives.Without restaurants, many people can’t afford to pursue photography, art, etc. It all connects.”
Restaurants play an integral role in our communities, and I agree we need to support them. But restaurants are not the only ones suffering, if customers can not afford dine out, then they simply won’t.
When our society, government and economy are strong then everyone wins. Unfortunately, this has not been the case, and we are in desperate need of change.
ChefJames Groot 