Millions earmarked for N.L. restaurants a nod to an industry that's 'too big to fail,' says chef

The Newfoundland and Labrador government has earmarked millions of dollars to help right the rocky restaurant industry, a move that a St. John's chef says a sign of long-overdue recognition.

Wednesday's tabled provincial budget included several supports aimed at helping the restaurant sector, including a $10-million loan guarantee program to assist locally owned restaurants.

Hospitality Newfoundland and Labrador's beverage sector representative and chef Todd Perrin said he'd hoped for something in the budget aimed at uplifting the sector from the government.

"The restaurant industry largely gets taken for granted," he said.

He sees the budgetary support for his sector as a sign that the provincial government recognizes its economic importance.

"It's a significant employer in the province and in the country, which is a significant revenue generator and it's probably the greatest distributor of wealth that there is in the economy."

He added it's an industry "that's too big to fail."

Tourism Minister Steve Crocker said restaurants are important to the tourism and hospitality sector, adding that the sector was particularly hit hard by the COVID-19 pandemic.

"This is a way for our government to continue to support that very, very important industry — that home-grown industry — here in Newfoundland and Labrador," he told reporters on Wednesday.

Crocker added the sector provides many jobs and is critical to non-resident tourism and quality of life to locals.

Perrin said it can be hard for restaurants to get a line of credit, so this program should help.

"It's like many things in these budget documents, the devil is in the details," he said.

How helpful the program is will depend on how it's rolled out and other stipulations around how it can be used, but he stressed it's still a good development.

"We say it in the restaurant industry all the time, you know, 'You can't let perfect be the enemy of good.'"

Booze gets boost

The budget also includes $1 million for bars and restaurants to increase wholesale pricing discounts on wine, spirits and ready to drink beverages.

Perrin said it is an opportunity for savings in an industry known for slim margins.

"The money that we spend with the liquor board translates directly into jobs and to viability of our businesses," he said.

How that discount impacts restaurants will depend on the size of the business and how much they buy, he added.

"Obviously, the more you buy, the bigger impact a discount will be."

Perrin said tariffs and economic uncertainty does have an impact on the restaurant sector, largely in that it influences how people spend their money.

"We are an industry that relies on discretionary income and people feeling good and getting out and having a good time. And it's hard to do that when you're getting beat over the head by the news that keeps coming out of the United States."

Restaurants Canada is also "pleased" with the loan program and alcohol wholesale discounts.

"The pandemic and its aftershocks have taken a toll on Newfoundland and Labrador's restaurant industry," wrote Atlantic vice-president Janick Cormier in a statement.

She said the industry was hit hard by the pandemic and there are 2,600 fewer food service jobs since 2019, along with high-profile restaurant closures that have "rocked the industry recently."

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