More financial support needed for Saskatchewan’s food service industry: Restaurants Canada

Restaurants Canada says Saskatchewan food service businesses might not have enough cash flow to reopen due to the coronavirus pandemic and is calling on the province for help.

With Saskatchewan’s reopening plan underway, Restaurants Canada says businesses need more financial support to resume dine-in service when they are allowed.

In a recent survey done by Restaurants Canada, about seven in 10 restaurant owners are “either very or extremely worried that their business won’t have enough liquidity to pay vendors, rent and other expenses over the next three months.”

Restaurant Canada says that while the Canada Emergency Commercial Rent Assistance program is providing some businesses with relief, rent obligations can be still challenging for many.

“At least one out of five independent restaurant operators are dealing with a landlord who is not willing to provide rent relief, either through the CECRA program or some other arrangement,” Restaurant Canada said in a release.

“Fourteen per cent of independent restaurants haven’t been able to pay rent for April and nearly 20 per cent aren’t able to pay rent for May, despite not having an agreement from their landlord to postpone those payments.”

Mark von Schellwitz, Restaurants Canada vice-president for Western Canada, said resiliency in the industry won’t be enough in terms of being able to survive this pandemic.

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“The government of Saskatchewan has made commendable efforts to help restaurants survive to this point with the Saskatchewan Small Business Emergency Payment and other emergency measures,” von Schellwitz said.

“But as these mostly small and medium-sized businesses begin to gradually reopen their dining rooms, there will be a need for continued support.”

Restaurants Canada said 25,000 food service jobs have been lost since the start of the pandemic.

1:34 25,000 food-service jobs lost in Saskatchewan during COVID-19: survey

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