Restaurants Owned By ‘Top Chef Canada’ Contestants Say A Bailout Is Necessary
FREDERICTON – The atmosphere is normally bustling at Isaac’s Way on weekends – it can be hard to get a table without a reservation.
But the past few days have felt “incredibly quiet” as diners stayed home amid coronavirus concerns, resulting in a 50 per cent drop in business at the restaurant.
“There’s a lot of fear in this mix,” said co-owner Tabatha Smith.
Restaurants around the Maritimes are struggling to keep operating with declining customers during the novel coronavirus pandemic. Some have shifted to a focus on take-out and delivery, while others have temporarily – or in some cases permanently – been forced to close.
Smith, who owns The Abbey Cafe & Gallery as well as Isaac’s Way, has since closed both locations.
Luc Erjavec, Restaurants Canada’s Vice-President Atlantic, said some restaurants in the region have already shut down, cut back on staff or reduced operations.
“There’s a lot of pain,” he said. “We’re small businesses that have a lot of employees and a really thin margin.”
Restaurants are a major part of the local economies of New Brunswick and Nova Scotia, employing about 58,000 people. The two provinces have more than 3,900 establishments that generate a combined $3.6 billion in annual sales.
In New Brunswick, restaurants are the fourth largest employer, accounting for 6.3 per cent of the workforce, according to Restaurants Canada.
Erjavec said his organization supports the measures to contain the virus and is working with the government to find ways to support the industry like removing the waiting period for employment insurance.
Sanitation measures increased
Restaurants in the Maritimes have been taking additional precautions since the start of the outbreak, including removing seating to increase the distance between customers, only offering takeout or delivery and increased sanitation.
“Restaurateurs live in the same communities as everyone else,” Erjavec said. “They want to protect their neighbour, they want to continue to employ their neighbour, they want to continue to serve their neighbour. We’re part of the community and we’re going to do whatever we can do to get past this thing.”
Until they made the decision to close down entirely, Smith says the staff at The Abbey Café and Isaac’s Way were taking all the necessary precautions to protect customers. They were sanitizing menus after each use, cleaning doorknobs every hour and no longer leaving out sugar and cream for coffee. The café customers could no longer help themselves to cutlery.
Smith said the drop in sales she’s seen at her restaurants is unprecedented. Isaac’s Way, which serves an older clientele, took the hardest hit with a 25 per cent decrease last week and more than 50 per cent over the weekend.
The Abbey Café, which caters to a younger clientele, had maintained its sales levels so far.
“There’s a lot of worry and concern about our futures, business futures, personal futures,” Smith said. “There’s a lot of fear around our health.”
Isaac’s Way has a capacity of 120 people and typically flips tables once on a Friday evening. Only 51 people came for dinner that night, but delivery orders increased.
Monday was off to an even slower start. Six tables were served for lunch, compared to the usual 18-20.
Several restaurants temporarily closing
Fredericton’s Cannon’s Cross Pub and RustiCo closed their dining rooms on Tuesday to allow for social distancing. They are only offering take-out and delivery orders through Skip the Dishes, and waiving the delivery fee.
Several eateries in Saint John, Moncton and Halifax have also announced plans to shut their doors in response to concerns over COVID-19. In New Brunswick, the province’s chief medical officer mandated the closing of public places including bars and buffet-style restaurants.
Owners are also being asked to limit the number of customers to 50 per cent capacity in dining areas.
Saint John restaurant owner Jesse Vergen told Huddle he stopped operations on Monday for the safety of the community. The decision to close followed new public health guidelines and a substantial drop in sales last week.
“Our number one priority is our staff, and if they’re continuing to have to go to work, they’re continuing to have to take public transit,” he said. “It leaves little holes in the idea of isolation and social distancing.”
Calls for an industry ‘bailout’
Vergen, a former Top Chef Canada contestant, owns the Saint John Alehouse, Smoking Pig BBQ, Toro Taco, Barred Rock and McGill’s. They currently employ about 60 people – a number that grows during the summer.
The restaurateur would like to see a government “bailout” to help restaurants survive the pandemic.
“This time around everyone is going to suffer. The restaurant, tourism and hospitality industry is taking a massive tumble,” Vergen said. “We are closing down and trying to be good community leaders and a lot of us aren’t going to be able to land on our feet.”
Restaurant industry could ‘get crushed the quickest’
In the restaurant industry about a third of every dollar in sales goes towards payroll, leaving owners with a tight margin to make it through a decline in business. That cushion is even smaller for newly-established eateries, who are dealing with debt.
On Tuesday, the Nova Scotia government announced new restrictions being placed on restaurants. Starting Thursday, restaurants can only operate take-out and delivery services; bars won’t be allowed to open at all.
Many restaurants had already taken action in advance of the government decision with a flurry of announcements of voluntary closures early this week.
Doug Townsend, who co-owns The Canteen in Dartmouth with his wife, former Top Chef Canada contestant Renée Lavallée, decided to close yesterday and is waiting to hear what financial help they might receive. He said the restaurant industry will “get crushed the quickest” by the COVID-19 pandemic.
“Now we’re just holding our breath waiting to see what, if any, support there will be from the government for small businesses such as ours,” he told Huddle.
Townsend doesn’t see the economic relief measures announced by the federal government last week as helpful, which includes loans through the Business Development Bank of Canada, since small businesses would acquire more debt.
In the Maritimes, establishments that remain open face the prospects of being forced to close if the pandemic continues. Ontario’s government issued a recommendation on Monday to close all restaurants in that province.
“There’s a need to contain the contagion, but on the other hand we’re an essential stream for providing food and nourishment to people, be it first responders, take some of the pressure off of the grocery stores and other areas,” Erjavec said.
Vergen said the uncertainty of the situation is “pretty scary” and he is currently evaluating with his business partner how long their Saint John restaurants can last.
“The last pandemic of this size was a hundred years ago and there weren’t as many restaurants as there are today,” he said.