Hamilton and Niagara restaurants close indoor dining due to lack of customers and safety concerns

Some restaurants in Hamilton and the Niagara region are closing indoor dining this week, saying they lack customers and  are concerned for the safety of their staff.

Adam Hyman-Smith, the co-owner and chef at the Australian restaurant Dispatch, in downtown St. Catharines, says he sees the latest Omicron wave of COVID-19 as "the straw that could break the camel's back" for many businesses.

The Dispatch is reverting to take-out only until the first weekend of January and then shutting down completely, he said. He added that they plan to re-open on Jan. 20, but that he doesn't know if it will be for take-out or indoor dining.

"How long will we be doing this? We have no idea," he said. "This will be a catalyst for another massive amount of closures."

Jenna Lane, who assists with managing the Italian restaurant Martello in Hamilton, said that the restaurant closed indoor dining and laid off employees on Monday. It made more sense to lay off employees now to let them collect employment insurance than to slowly cut shifts and keep putting employees at risk, she said.

"This is one of the few industries where people come in and take their mask off. Most other people who have experienced that get paid doctor wages," she said.

"It's a very high risk for not making any money and tips, and not doing much of anything to serve that one table and possibly get COVID right in time for Christmas."

Other restaurants have closed because of positive COVID-19 tests among their staff, including Bon Temps and Ray's Food and Liquor in Hamilton. 

Earlier this week, restrictions took effect that put a 50 per cent capacity limit on many indoor settings, including restaurants and bars, retailers, malls and gyms. The capacity restrictions, along with the hesitation of customers to gather indoors, have made it untenable to keep staff on, Lane said.

"We can't close, because we need to pay bills. But we also can't stay open with staff," she said. "There's not enough money coming in, we're literally losing money paying the staff to be here to serve no one."

New federal measures announced Wednesday 

The new $300-per-week worker support program, the Canada Worker Lockdown Benefit, came into effect last Friday but no one in the country met the eligibility criteria initially. It was available to workers who couldn't work due to a local lockdown designation, but no region was under lockdown.

For employers, the story was similar. Lane said that her restaurant wasn't eligible for a wage subsidy because they weren't in a lockdown.

Prime Minister Justin Trudeau announced that the policy was changing on Wednesday afternoon. The Canada Worker Lockdown Benefit will be available to employees in any region where there are more than 50 per cent capacity restrictions and who have lost more than half their income, according to Trudeau.

Employers who are subject to capacity restrictions of 50 per cent or more and face current-month declines in revenue of at least 25 per cent can apply for the Local Lockdown Program, which grants wage subsidies from 25-75 per cent depending on revenue loss.

Ontario also announced new business support programs on Wednesday to address the impacts of restrictions, such as a benefit that covers up to 50 per cent of the property taxes and energy costs of eligible businesses while indoor capacity is restricted at 50 per cent.

Rocco Rossi, president and CEO of the Ontario Chamber of Commerce, praised the new measures from the provincial and federal governments in a statement, saying "this is good news for businesses and workers heading into the holiday season when they need it the most." 

However, he said some measures were missing, like an extension of the small business grant, and he worried whether the benefits would come fast enough to prevent businesses from closing.

"Newly imposed restrictions intended to control the spread of the Omicron variant should always be met with immediate, commensurate and targeted relief, particularly for small businesses who are struggling to stay afloat at this time."

Restaurants already unsustainable before pandemic: owner

Justin Duc, the co-owner of the bistro Oddbird in St. Catharine's, said they were closing early for the holidays to protect staff as well. Its last day of service was on Saturday, the last day before the 50-per-cent capacity came into effect.

"It seems like [COVID-19] was a lot closer to home this time. My brother has it. My girlfriend's mother has it," he said. "We wanted to make sure all of our staff and everybody was safe and healthy, so that when we do have our break, everyone's able to spend time with their families and be safe."

Hyman-Smith at Dispatch said restaurant workers haven't been acknowledged as frontline workers by governments despite being put in danger of getting COVID-19, and that the industry already needed a revamp before the pandemic. 

"Our industry, even before the pandemic, was not sustainable," he said. "It was destructive to people's lives. You'd be watching exploitation of the workforce, people overworking and underpaid, and a toxic and horrific working environment." 

He said all of his staff are salaried except for one person who is part-time, and does not operate with a tip and minimum wage model like many restaurants. Staff will continue to be paid while the restaurant is closed, he added.

In the long term, Hyman-Smith said he hopes governments can tie financial incentives to positive actions by businesses, such as paying a living wage or becoming carbon neutral.  

"A lot of people don't make enough money to live," he said. "My asks are for them to step up and help us become a sustainable industry for the future."