'Handed a death sentence': Canadian restaurants decry pending end to federal subsidies that have kept them afloat
At Lazy Daisy’s Café in Toronto's Little India neighbourhood, the cappuccino machine is still whirring and the biscuits are being buttered—but 20 months into the pandemic, it hasn’t been easy to keep the kitchen running.
“We’ve been treading water,” owner Dawn Chapman said Friday. “I’ve been trying to keep my staff paid, I’ve been trying to make sure all our suppliers are paid, and just trying to push through to get through to the other side.”
The federal emergency wage and rent subsidies have been the restaurant’s saving grace, said Chapman, and even with the financial assistance they’ve barely been able to break even.
“I spoke to my accountant the other day and I said ‘where would I be if we didn’t have the subsidies?’ and she said, ‘you’re in the red.’ So I said ‘well, what will I do when the subsidies end?’”
Chapman will face that reality this weekend, when the Canada Emergency Wage and Rent subsidy programs expire. Restaurants will be able to apply for financial assistance from the incoming Tourism and Hospitality Recovery Program, but to qualify will need to demonstrate an average monthly revenue loss of at least 40 per cent for the first 13 qualifying periods of the Canada Emergency Wage Subsidy (CEWS) and a revenue loss of the same amount in the current month.
Lazy Daisy’s losses have been been just below that 40-per-cent threshold, said Chapman, meaning they won’t qualify for the new support program.
“Many restaurants are operating at 20-, 30-, 35-, 39-per-cent reductions in revenue,” Todd Barclay, president of Restaurants Canada said Friday. “Because of the thresholds, they’ll no longer be able to receive any type of subsidy.”
According to the association, seven in 10 restaurants are still relying on the wage and rent subsidies to stay alive, and 50 per cent of them will no longer qualify for the new support program due to the revised criteria.
“Many restaurants across the country, based on the announcement yesterday, have been handed a death sentence,” said Barclay.
The options for many: raise prices, or cut staff wages or hours—an alternative that could have a ripple effect through the industry, according to Bea Bruske, president of the Canadian Labour Congress.
“When employers are able to offer only part-time or very fluctuating hours of work, that also means those workers need to make a decision on whether they can take that job or hold out for something that’s more permanent, and more consistent in terms of their paycheque,” Bruske said.
At the east-end New Town Family Restaurant, owner Prasanna Hettiarachchi has been working solo seven days a week since the start of the pandemic because even with the existing subsidies, couldn’t afford to pay any staff.
The pandemic wage and rent programs have kept his business alive, he said—barely—and losing them may mean he’ll have to shutter his doors for good.
“How am I going to pay if I don’t have anything?” he told CTV News Toronto, “How am I going to pay, the rent, hydro, gas?”
CTVNews.ca Top Stories
MPs 'wittingly' took part in foreign interference: national security committee
A new report says some MPs began 'wittingly assisting' foreign state actors soon after their election, including sending confidential information to Indian officials.
More Canadians are moving to the U.S. Here's one of the main reasons, according to an immigration expert
Recent data from the U.S. census revealed that more than 126,000 people moved from Canada to the U.S. in 2022. An expert said that one of the main reasons for this move is the cost of living.
Bus carrying Quebec tourists crashes in Cuba, leaving 1 dead and 26 injured
One person is dead and 26 were injured after a bus carrying Quebec tourists was involved in a collision in Cuba on Sunday.
Her gut was producing alcohol. Doctors didn't believe her
For two years doctors told her she was an alcoholic. Then they realized her gut was making alcohol from carbohydrates, a rare condition called auto-brewery syndrome.
Here's how far B.C. drivers must keep from cyclists, pedestrians under new law
A new law protecting cyclists and pedestrians in British Columbia takes effect Monday, establishing minimum distances that drivers must keep from so-called vulnerable road users.
Forest bathing: What is it and why some Alberta doctors recommend it
Many people are familiar with the benefits of being in nature, but forest therapy goes a step further than a simple walk in the woods.
Poilievre says same-sex marriage 'will remain legal when I am prime minister, full stop'
Facing scrutiny over comments one of his MPs made, Conservative Leader Pierre Poilievre says if he become prime minister, he will uphold same sex marriage rights, 'full stop.'
Toyota apologizes for cheating on vehicle testing and halts production of three models
Toyota Chairman Akio Toyoda apologized Monday for massive cheating on certification tests for seven vehicle models as the automaker suspended production of three of them.
Elected leaders should read Supreme Court decisions before speaking, says top justice
The chief justice of the Supreme Court is sending a warning about the risks elected officials run by reacting to decisions from the court without first having read the rulings themselves.