Half of BC Restaurants Currently in The Red

Photo Credit: Jess Fleming/Daily Hive

While COVID-19 restrictions on BC’s restaurant industry were lifted over 18 months ago, BC’s restaurants are still facing urgent financial hardships. Amid decreasing profits and bankruptcies, many restaurants are now seeking assistance from the provincial government.

The pandemic has had a long-standing impact on BC’s hospitality industry. According to a 2021 report by Statistics Canada, the struggling industry witnessed an employment decline of over 50 per cent in 2020 alone. To counteract initial bankruptcies amid the COVID-19 pandemic, many Canadian non-profits and local businesses such as restaurants received a Canada Emergency Business Account (CEBA) loan of up to $60,000.

However, despite the government reducing financial support, BC’s restaurant industry still faces issues brought on by the pandemic. Matthew Senecal-Junkeer, owner of the downtown restaurant Birds & The Beets Food Group pointed out in a CBC interview that “what was a pretty decent, busy, and profitable business in 2019 is now sort of a break-even business.” Factors such as dwindling foot traffic and rising food and labour costs have made profitability increasingly difficult. As recently as March, Restaurants Canada has reported that 37 per cent of food service companies are operating at a loss, and 17 per cent breaking even.

Adding onto financial hardships, the deadline for restaurants to repay any pandemic-related loans was set for Jan. 18. However, a strong community has formed in support of the vital industry. Ian Tostenson, CEO of the British Columbia Restaurant and Foodservices Association (BCRFA), with the Restaurants Canada organization, aims to help the struggling sector. Tostenson told Global News, “I think a lot of people are saying enough is enough. Most of the small businesses, they’re working six-and-a-half days a week just to keep their places open.”

Among many initiatives such as Restaurant Canada’s Bartenders Benevolent Fund, organizations like the BCRFA have already pushed the City of Vancouver to accelerate licensing approvals and to improve the foreign worker program to address labour shortages.

Especially amid the closure of establishments such as North Vancouver's De Dutch, which closed its doors on Dec. 24 after 35 years of operation, keeping the industry alive is as important as ever. “Restaurants are at the heart of every community in this province,” said Restaurants Canada Vice President Mark von Schellwitz in a public address.