Takeout and delivery sales won’t cover expenses for most restaurants
Before the introduction of COVID-19 prevention measures, on-premise dining was the main source of restaurant sales revenue nationwide. For table-service restaurants, dine-in sales typically represented 80 per cent of their total revenue. For restaurants still operating amid the COVID-19 crisis, losses from dine-in sales will be tough, if not impossible, to replace. This will leave them with a very limited amount of working capital to resume full operations once the crisis is over.
Restaurants need evictions off the table until solutions are in place
An injunction on evictions would allow time for governments to bring stakeholders to the table to develop immediate and long-term solutions that will work for all parties involved.
Further relief still needed in a number of key areas
Restaurants Canada is continuing to recommend strengthening support in the following areas, including rent relief, so that restaurants can survive the unprecedented challenges they’re facing:
- Loans and mortgages: Further coordination with the banking sector is needed to make more flexible arrangements readily available, including payment-free periods.
- Rent: Flexible arrangements are needed from landlords to allow for payment-free periods. Foodservice operators are looking for a coordinated effort led by government, coupled with no-eviction orders to relieve pressure.
- Taxes: More flexibility as well as a certain level of relief on sales tax payments are needed, as deferrals may contribute to long-term challenges. Flexibility and relief are also critically needed on property taxes at the municipal level.
- Labour: Increased assistance is needed from government to avoid laying off staff during periods of little-to-no revenue. More information and support is also needed to help staff who are temporarily out of work access benefits.