When pandemic measures began mandating restaurant closures and the segregation of businesses into “essential” versus “non-essential” enterprises, we were assured that this could never be a long term problem because the economy would “recover”. In reality, recovery is starting to look an awful lot like recession.
Bankruptcy filings in food services have spiked 116 per cent since 2022, according to Restaurants Canada. It says about half of restaurants are unprofitable right now, compared to only 12 per cent before the pandemic.
Restaurants Canada is calling on the federal government to extend the CEBA repayment deadline. The program offered interest-free loans of up to $60,000 to small businesses and not-for-profits. The deadline to pay back loans is Dec. 31, 2023.
Restaurants Canada estimates 20 per cent of its members won’t be able to pay back the loans by deadline.

