N.S. Restaurant Leaders Applaud $1.2-Million Break On Booze
HALIFAX – Leaders in the restaurant and hospitality industry are getting a much-needed break on alcohol expenses in Nova Scotia’s newest budget. On Friday, the government announced that it would be spending $1.2-million this year to give an expanded discount to bars and eateries so it includes sales of “canned and bottled beer, cider and ready-to-drink products.”
Without such discounts, restaurants, pubs, and other establishments must pay the retail price from NSLC, then mark it up to make a profit. This makes alcohol, understandably, more expensive for the end customer.
Gordon Stewart, the executive director of the Restaurant Association of Nova Scotia, said this will give restauranters “significant savings” at a time when it’s most needed.
“We’re already getting 10 percent on wine and spirits, and it just got extended to other categories, which are very big categories for restaurants and bars,” said Stewart. “So that was a big win for us; we’d been lobbying a long time around that issue.”
“We figure this will help us during recovery and particularly after recovery it helps us build back business a little bit faster in terms of profitability.”
Stewart has also been lobbying the provincial government to allow restaurants to permit dogs on outdoor patios. That law was granted today, March 30, which is expected to help the industry greatly as the weather warms.
Luc Erjavec, who represents the Atlantic Region with Restaurants Canada, said Premier Iain Rankin promised the restaurant industry this discount during his leadership campaign. With fewer people going out to drink at bars and restaurants, Erjavec is hopeful this discount will help everyone’s bottom line.
“I’m very pleased that Premier Rankin acted quickly on his commitment,” said Erjavec. “This is a commitment he made to us during the leadership campaign and it’s going to help small businesses from Yarmouth to Sydney and our employees and our customers.”
“It’s really going to help the part of the industry that’s hurting the most. Sales in drinking establishments are down, roughly, 50 percent. In full-service licensed restaurants, it’s down 35 percent.”
Another big ask of Restaurants Canada was granted when, on March 2, the provincial government announced a $7-million property tax rebate program for small businesses, including restaurants.
Erjavec is hoping these discounts on alcohol will be kept by the provincial government. Even before the pandemic, it made little sense to him that businesses were paying retail prices on a product, rather than a wholesale price.
“What other product does anybody buy at full retail price and then have to resell it? It really brings a level of fairness to our industry,” he said.
“Alcohol was the only product treated like this. If we (in the restaurant business) buy steaks, we’re going to get it for a lot cheaper price than you’re getting it.”
Restaurants across the world have been one of the hardest-hit industries due to the pandemic. In Nova Scotia, the industry saw a revenue dip of $400 million in 2020 compared to the previous year.
According to data from January, 66 percent of establishments were operating at a loss, 19 percent were breaking even, leaving less than 20 percent that was making any kind of profit. Despite these hardships, the majority of restaurants have remained open during the pandemic.
But Erjavec is hoping that, as Canadians gradually get vaccinated, there will be brighter times ahead for restaurant owners.
“We’re cautiously optimistic that we can see some light at the end of the tunnel with vaccinations…but despite what is done in the budget, we’re still going to need long-term support and help and initiatives to move forward.”