New Brunswick

Restaurant owners appeal to campaigning political parties for support

Almost half the restaurants in New Brunswick are losing money during the COVID-19 pandemic, but Luc Erjavec, Restaurants Canada vice-president for Atlantic Canada, says there are ways government can help.

Restaurants, the 4th-largest employer in N.B before the pandemic, ask for financial help

Restaurants have added a stricter cleaning regime to prevent the spread of COVID-19. (CBC)

Almost half the restaurants in New Brunswick are losing money during the COVID-19 pandemic, but Luc Erjavec, Restaurants Canada vice-president for Atlantic Canada, says there are ways government can help.

"It is not business as usual," Erjavec to told Information Morning Moncton on Wednesday.

With restaurants following strict safety guidelines, a recent survey found 47 per cent are operating at a loss, 24 per cent are breaking even, and the rest getting by, he said.

"It's still really tough out there for the industry in New Brunswick. Before the crisis we were the fourth-largest employer in the province." 

Erjavec said his organization wants all political parties campaigning for the Sept. 14 election to know that things in the restaurant industry are nowhere near normal. 

Luc Erjavec of Restaurants Canada says restaurants in New Brunswick are struggling and will need government support after the provincial election. (CBC)

"As long as we have public health restrictions imposed by the province, it's not normal, and we're going to need government support."  

Restaurants Canada has put together what Erjavec called a menu for a road to recovery. 

"We're asking politicians of all stripes to consider the industry as you're setting your public policy. We're so important to every single community and the economic and social fabric of the province." 

Half the operators say they need at least a year until they're going to see the right side of the profit margin.- Luc Erjavec, Restaurants Canada 

Erjavec said he hopes legislation allowing alcohol with takeout and delivery orders will be passed after the election.

Restaurant owners also hope there won't be any changes to labour policies, because they can't afford any additional  costs now. 

"The bills are piling up and essentially we're operating with physical distancing at about a 50 or 60 per cent capacity, so we don't have the revenue, and there's no way for us to generate the revenue," Erjavec said.

New Brunswick restaurant owners would also like to see government offer cash grants to help with upfront costs for plexiglass and PPE, which has happened in other provinces. Another option would be a loan program that made a portion of loans forgivable. 

"Really, the government of New Brunswick has not done anything in terms of direct support for the industry other than offering loans," Erjavec said. "We're full to the top with loans." 

Many owners are worried business will decrease when the temperature drops, and patios, where some customers are more comfortable, close. 

"This is a long-term game we're in," Erjavec said. "Half the operators say they need at least a year until they're going to see the right side of the profit margin." 

With files from Information Morning Moncton