Without immediate, direct government support, as many as half of all Canadian restaurants might well close permanently by the end of this year, Andrew Oliver, CEO of Oliver & Bonacini Restaurants, told Bloomberg News.
Even with government help, 25 percent of the country’s dining establishments may disappear by January, he warned.
Patio dining has been allowed at Canada’s eateries but that soon will end as winter sets in.
The company has more than 14 restaurants around Canada under various names and employed more than 1,200 people at the beginning of this year.
The nation’s eateries have had to rely for aid on the government’s rent relief program, which paid part of restaurants’ rent if landlords slashed the monthly charge to begin with. Few landlords applied for the program, Restaurants Canada, a trade group, has reported.
Oliver said only about 10 percent of restaurants have benefited from the rent relief program.
Oliver has called on the Toronto city government to cut property taxes for landlords, a savings property owners could then pass on to tenants in the form of rent subsidies or reductions.
Restaurants Canada is pressing the federal government to give aid directly to restaurant owners.
