Restaurants Sales in Nova Scotia Saw $400,000,000 Dip In 2020
HALIFAX – The restaurant industry has been one of the hardest-hit business sectors since the Covid-19 pandemic began nearly a year ago. In Nova Scotia, restaurant revenue dropped by more than 24 per cent in 2020, compared to sales the year before. And the newest data from Restaurants Canada indicate rebuilding the industry to pre-Covid levels will be a gradual two-year process.
“It’s going to be just a long, long, slow recovery and we’re going to need government support to get there,” said Luc Erjavec, the Atlantic Canada representative for Restaurants Canada.
In 2019, Restaurant sales in Nova Scotia topped at $1,762,700,000. In 2020 it was more than $400,000,000 less at $1,336,800,000. According to projections made by Restaurants Canada, things won’t return to normal until 2023, when sales are estimated to be $1,788,000,000.
Full-service restaurants were hit much harder than fast food joints as well. According to Erjavec, full-service establishments say a 35-45 percent decrease in sales, while the quick-service sector only saw a 10-15 percent drop in 2020.
The sales numbers are bleak, but it gets even bleaker when you realize the human toll that the pandemic has taken on the restaurant sector. There are approximately 12,000 fewer people working in the restaurant industry in Nova Scotia right now compared to pre-pandemic levels.
Restaurant owners themselves have been willing to take on the stress of operating their beloved businesses without making money. According to the latest survey data, 66 percent of establishments are operating at a loss, 19 percent are breaking even, leaving less than 20 percent that are making any kind of profit. Despite these hardships, the majority of restaurants have remained open during the pandemic, and this gives Erjavec optimism for the future of the industry.
“The optimism is there because so many operators are still in business,” he said. “They’re accumulating debt. They’re staying open despite all the hardship.”
The industry got some good news last week when the province lifted in-dining restrictions in Halifax. But Erjavec says there hasn’t been a huge rush through the doors after restaurants reopened.
“No, there wasn’t a big uptake,” he said. “It’s really unfortunate that we missed the Christmas season… January is traditionally a slow time.”
Erjavec is hopeful that the federal government will keep its most impactful programs operating as long as they are needed, such as the wage subsidy and rent subsidy programs, which have largely kept the restaurant industry afloat.
“I think the government of Canada has been very good in terms of stepping up to the plate,” said Erjavec. “We now have a solid plan until at least June in terms of the wage subsidy and the rental subsidy, which are super important for our industry.”
But Erjavec and Restaurants Canada still think governments can do more to help the struggling industry. The pandemic has put a bright light on the fees charged by third party delivery companies, such as Skip The Dishes and Door Dash.
Many restaurants are charged 25-30 percent on orders by these third-party delivery companies. And, with so many people now ordering delivery because of the pandemic, these delivery companies have become a necessary service, despite the high costs. B.C. and Ontario have capped the delivery charges at 15 percent. Erjavec hopes Nova Scotia and other provinces do the same.
“We’ve formally asked the government to cap fees. When restaurants are shut down, it’s the only way to serve customers…but when you’re paying fees of 25 or 30 percent, it’s nearly impossible to make a go of it.”