The year 2023 has been difficult for Canadian restaurateurs; Inflation increased spending and customers became less frequent.
This makes the beginning of the year all the more crucial for restaurateurs. There are less than three weeks left to repay the loans granted by the federal government during the pandemic.
To replenish her coffers, Caroline Dumas, chef and owner of Montreal restaurant Bloomfield, is increasing the number of opening days and catering services during the holidays. Even though his restaurant is full, his customers are spending less than before.
Consumption is non-existent. There are even people who share dishes, she notes.
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Caroline Dumas, chef and owner of Bloomfield restaurant in Montreal.
Photo: Radio-Canada
Other restaurateurs experience the same situation as Caroline Dumas. According to the Institut de la Tourisme du Québec (ISQ), the income of restaurateurs in Quebec has fallen by 5 to 10% in recent months.
The average transaction volume per facility in the province has actually fallen by 10% since last year. For example, in October 2022 it was at $110,005 and then fell to $99,441 in October 2023.
Additionally, restaurant costs continue to rise due to inflation.
According to Maximilien Roy, vice-president of Restaurants Canada, the industry has not yet returned to normal [rythme] than before the pandemic.
At this point we look at GDP [par personne]. If we eliminate inflation, we will not yet be back to the same level as before the pandemic, he specifies.
Refund after COVID-19
Despite the uncertainty, the holiday season is helping to offset a difficult 2023. And those who host corporate parties do better than others.
This is especially true for Hugues Philippin, owner of the Chic Tandi restaurant! in Quebec. It is going very well. We are currently very satisfied with this year's sales, he says happily, but 2023 will not be a record year.
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Hugues Filipino, owner of Chic Tandi restaurant! in Quebec.
Photo: Radio-Canada
The restaurateur is aware that many challenges await him in 2024, starting with repaying the loan taken out from the federal government during the pandemic, which is due on January 18th.
Created during COVID-19, the Canadian Emergency Business Account (CEBA) offered loans of up to $60,000 to nearly 900,000 entrepreneurs, including Hugues Philippin.
I don't have $40,000 in cash to pay off this loan because we also have other obligations. Since I have to refinance the loan myself, I would definitely like more time to do so. [rembourser].
This deadline, which is getting closer and closer, will also force Caroline Dumas to accumulate working hours.
It's really [gratifiant] to take part in these events [de fin d’année] and make people happy. We are in joy, [mais] “We’ll see on January 18th,” says the owner of the Bloomfield restaurant.
As for Restaurants Canada, the organization wants governments to limit increases in alcohol taxes to give restaurateurs some breathing room in 2024.
With information from François Joly