Restaurants begin to take a massive hit as COVID-19 cases rise

BY JANIECE CAMPBELL

Restaurants Canada is a national, not-for-profit association advancing the potential of Canada’s diverse and dynamic foodservice industry through member programs, research, advocacy, resources and events. With new modified Stage 2 restrictions being implemented in some regions and indoor dining being suspended, the foodservice industry is in the midst of an “economic tidal wave,” according to Brampton Mayor Patrick Brown.

According to Restaurants Canada, before the start of the COVID-19 pandemic, Ontario’s foodservice sector was a $37 billion industry, directly employing more than 480,000 people, providing the province’s number one source of first jobs and serving 9.1 million customers every day. Ontario’s foodservice industry lost more than 215,000 jobs by April and is on track to lose as much as $17.8 billion in annual sales compared to 2019 due to the impacts of the pandemic.

“Our sector was one of the first to suffer the impacts of this crisis and continues to be among the hardest hit,” said Restaurants Canada President and CEO, Todd Barclay. “Going back to this level of shutdown will be a huge blow. Restaurants deserve to see the data driving this decision and will need immediate emergency assistance so they can continue contributing to the social and economic fabric of the communities they serve.”

Over a one-week period in the last month, nearly 44% of COVID-19 outbreaks in Toronto were tied to bars and restaurants, subsequently prompting Medical Officer of Health Dr. Eileen de Villa to request that the province impose tougher restrictions. On October 10^th, the apprehensive step back was approved in Toronto, Peel Region and Ottawa, and Restaurants Canada estimates that the indoor dining closures will result in:

• Sales losses of as much as 80% for full-service restaurants and more than 40% for quick-service restaurants
• Tens of thousands of jobs lost across the province:
  • 12,000 in Ottawa
  • 33,000 in Toronto
  • 14,900 in Peel Region

“Ontario’s restaurants have made major investments in health and safety equipment and training so that they could continue serving their communities throughout the COVID-19 pandemic,” said James Rilett, Restaurants Canada Vice President, Central Canada. “They are now being asked to severely restrict their operations to help the province contain rising community spread. Doing so will come at a steep economic cost for communities impacted by these restrictions if all levels of government don’t step up with emergency assistance to help them pull through.”

Black entrepreneurs in the Greater Toronto Area are among the thousands of business operators trying to maintain a livelihood and stay afloat during this unprecedented time. The pandemic has added yet another hurdle for black business owners who often encounter systemic barriers that can make it difficult to launch and sustain business ventures. Black-owned businesses often specialize in restaurants or some degree of foodservice, and many owners have a tough time getting access to financial assistance.

Brampton resident and owner of Noi African Supermarket, Jane Ngozi Ezeasor shared her story with the Brampton Guardian.

“I have been unable to get many grocery items my customers are used to having since the pandemic. It’s really a drag on my business because many of my customers don’t come here to shop as before because I just don’t have things readily available anymore,” she says.

Although there seem to be plenty of options for government loans, such as the Canada Emergency Wage Subsidies (CEWS) program that employers may apply for to assist with paying staff, many owners just like Jane are not able to benefit from it.

“I am a sole-proprietor without employees. My business rests solely on my shoulders. I can’t take vacations like most people, that’s a luxury.”

Black business operators alike any other member of the foodservice industry are continuing to suffer from a loss of sales and are doing their best to cope with the ongoing pandemic. For an extensive list of black-owned restaurants to support across the GTA, check out Taste Toronto for more information.

https://www.tastetoronto.com/news/black-owned-restaurants-in-the-greater-toronto-area.