Decision Not To Reopen Dining Rooms ‘Devastating’ For Restaurant Owners
HALIFAX – “We’ve had discussions with the restaurant sector, they are okay with keeping them closed in the Halifax area. They understand the rationale. Closing them down was a big part of our ability to get things under control again in Halifax.”
When restaurant owner Kourosh Rad heard that quote from Dr. Strang on Wednesday he got, understandably, angry. Rad didn’t know if Strang and Premier McNeil would allow restaurants to open their dining areas again, but he didn’t expect the government to allow other places to reopen while singling out restaurants and bars.
The provincial government is allowing gyms, churches, barbershops, and other businesses to reopen – with strict conditions. For Rad, it doesn’t make sense to say some places are safe enough to open, but restaurants are too dangerous. Despite what Strang said at the press conference, Rad certainly wasn’t “okay” with the government plan.
“You can go to church and you can go to hockey practice, and you can go to the gym… why is that possible but the restaurants who have invested a lot of money since the pandemic can’t be open,” asks Rad, frustration clearly evident in his voice.
“If they feel all these other things are safe, why are we not safe? “It’s just hard to wrap our heads around it. This has come as a huge cost to us.”
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Restaurants can operate takeout and delivery. But many Halifax restaurants, such as Garden Food Bar & Lounge, aren’t set up to be a takeout joint. Rad says he is losing money every day with the shutdown.
“I’ve made zero dollars this year. Every dollar that I’ve come across…have gone into trying to maintain the place so I don’t go personally bankrupt,” he said.
“I have lost money. I can definitely tell you I’ve lost money this year.”
Rad said he recently had to tell his 29 laid-off staff that he couldn’t afford to keep them on medical and dental benefits for the time being. Rad wonders if those in power realize how bad things are right now for restaurants.
“It just seems out of touch with the reality that’s going on,” said Rad.
The provincial government recently offered financial help to businesses affected by government-ordered shutdowns, by offering a grant up to $5,000. Rad said the money is appreciated, but only makes a small dent in the piling-up debt.
“Thank you very much, but that doesn’t even come close to covering my rent. My power bills are still piling up because we have to keep the business going,” said Rad.
“We are losing money every single day that we are open. But I have to do it because I’m trying to stay relevant.”
To make matters worse, restaurants have now lost out on any potential Christmas revenue that they usually rely on this time of year, when people are getting together and going out to eat. Right around the corner is January and February, notoriously slow months for the industry.
“I have seriously considered closing it down until March or April,” said Rad. “In January and February, no one is going to be going out and spending money anyway – and that is the norm.”
Luc Erjavec, who represents Atlantic Canada for Restaurants Canada, said Wednesday’s announcement is nothing short of devasting for Halifax restaurants.
“Is this absolutely devastating to some businesses? Without a doubt,” he said. “This is really bad news for a lot of restaurants and their staff.”
Erjavec and other industry leaders met with Dr. Strang before the announcement was made about restaurant restrictions on Wednesday. Erjavec says he is no public health expert, so he has to trust Strang and others who make public health decisions.
“’You are the expert in public health, and if you weigh the risks and, based on science, you make a decision, we have to follow your decision’,” Erjavec told Strang at the meeting.
Erjavec said, however, it’s an overstatement for Strang to say the industry is fine with the announcement. But, at the end of the day, restauranteurs are going to go along with what is best for public health.
“Are we happy with it? That’s a different question. I think accepting it, is a better answer than ‘we’re good with it.”
The future of many Atlantic Canadian restaurants remains uncertain. According to Erjavec, only 15 percent of restaurants in the region are making any money during the pandemic. With the winter months approaching, government restrictions will really hurt the bottom line.
“About half of them are saying if things don’t change in six months, they’ll be broke,” warns Erjavec.