Restaurants Canada urges government to support foodservice amid pandemic recovery
By Canadian PizzaCOVID-19 Updates News Business and Operations Finance
Restaurants Canada is taking its concerns about the food industry’s survival to the federal government.
“Many of the measures that the federal government has introduced over the last few months have provided a lifeline to restaurants during these extraordinarily challenging times,” said David Lefebvre, Restaurants Canada vice-president, federal and Quebec, in a news release. “But with colder months approaching, the foodservice sector will need continued assistance to keep fulfilling its critical role within the Canadian economy.”
Recommendations for restarting Canada’s foodservice sector
Not only was the foodservice industry among the first and hardest hit by the impacts of COVID-19, the sector will also be among the slowest to recover.
While the latest Labour Force Survey from Statistics Canada reveals foodservice employment rose by 100,500 jobs in July, the sector is still more than 300,000 jobs short of where it was in February. No other industry comes close to continuing to face this level of shortfall.
Restaurants Canada is calling on the federal government to extend and strengthen support for foodservice businesses in the following areas so they can continue contributing to Canada’s recovery in 2021.
1. Assistance with labour costs, rising debt and cash flow
The following programs should continue to be available in 2021 to support foodservice businesses still struggling to operate under ongoing restrictions:
- The Canada Emergency Wage Subsidy (CEWS)
- The Canada Emergency Business Account (CEBA)
These COVID-19 response measures have made a meaningful difference in the short term and should be extended and strengthened to support business continuity over the longer term.
The association also recommends changes to the tax regime to further support businesses struggling with cash flow. Simplified rent relief provided directly to businesses is also needed.
2. Red tape reduction for small and medium-sized businesses
Restaurants Canada is recommending that any new legislation and measures that were put on hold due to the COVID-19 pandemic be reassessed to consider the new economic realities for businesses.
Hurdles to doing business should be limited wherever possible while small and medium-sized enterprises continue to struggle to remain operational under ongoing restrictions.
3. Targeted foodservice sector support
Sector-specific measures are needed to address some of the unique challenges that restaurants and other foodservice businesses have endured due to COVID-19. Restaurants Canada has provided a number of recommendations based on input from its members.
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