REGINA – The province’s three per cent tax hike on alcohol won’t be in place until April 1st, but businesses are already cringing.
“It was unwelcome news, that’s put it that way,” said Greg Hanwell, managing partner for Beer Bros. Gastropub & Deli. “I don’t think they really understand what it is our business does and the impact their decisions does on this business.”
He says this move is putting the pinch on restaurants already hit hard by the increase to the minimum wage, as well as the delay in the business tax cut. And he’s not alone. Over at the Press Box Sports Bar, managing partner Kevin Dureau is bracing for an immediate impact on business.
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“I think it’s going to affect us right away in the fact that most people are going to tend to buy their own products and they’ll buy a bottle rather than come out and watch the game,” he said.
Dureau says he might lose four to five per cent of his profits. That’s $500 to $1000 a week. He says he doesn’t have the money to stockpile alcohol in advance of the tax hike. Dureau will just have to take the hit and be creative to keep making money.
“In the grand scheme of things, that’s when you have to come up with food specials and try and make it up on that as well, so you combine a beer with nachos or a beer with other food options to try and recoup that,” Dureau said.
Kevin Kachur manages Creekside Pub & Brewery. He’s less worried about taking a hit, since he’ll be raising prices to compensate.
“We usually pass it on. Any increase we usually maintain what that increase was and continue and pass it in our pricing, not to gain anything on it but hopefully not to lose anything on it,” he says.
Back at Beer Bros., Greg Hanwell said the impact may be bigger than just a loss in profits.
“A lot of restaurants are hanging on by their fingernails and teeth. This is really going to hurt some of those,” he said. “It may even close some.”
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