Many restaurants still operating at a deficit: survey
Despite the fact the Province is allowing more businesses to reopen, many restaurateurs are struggling to put food on their own tables.
A survey from Restaurants Canada found that many restaurants are currently operating at a deficit--the revenue they're bringing in is less than their operating costs.
After months of reduced revenue--or none at all in some cases--and months at operating at reduced capacity, many restaurants need continued support to avoid closing permanently.
According to the findings, 60 per cent of restaurateurs said they are operating at a deficit.
Additionally, 22 per cent of single-unit restaurateurs and 15 per cent of multi-unit restaurateurs said they are just breaking even.
Further, allowing restaurants to offer dine-in options hasn't had a huge impact on sales for many.
Less than 31 per cent of single-unit operators and 43 per cent of multi-unit operators said allowing dine-in options had a positive impact on their bottom line.
Moreover, some owners--47 per cent of single-unit operators and 39 per cent of multi-unit operators--said allowing customers the choice to dine-in has actually had a negative impact.
"When restaurants thrive, so do the communities they serve," Shanna Munro, president and CEO of Restaurants Canada, said in a news release.
"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," she continued.
While the Federal Government's 75 per cent wage subsidy has helped many restaurants keep staff employed during these challenging times, many restaurateurs preparing to reopen are concerned they won't be able to access it now when they need it most.
- Nearly 10 per cent of restaurants have had to close permanently due to COVID-19
- Many restaurant owners believe it could take a year before their businesses return to profitability
- Many restaurateurs are concerned they won't be able to afford to reopen after pandemic
- More than 80 per cent of businesses impacted by pandemic: study
- Peel Public Health strongly supports closing bars, dine-in restaurants, nightclubs and theatres, effective 12:01 a.m.