​5 St. John's restaurants are shutting down. In a volatile industry, there's still hope

In swift procession, five well-established restaurants in the St. John's area have either closed their doors or announced they will soon.

Last month, downtown staple Pi Gourmet Eatery closed for good after two decades in business. Owner Meghan O'Dea said COVID-19, inflation and the increasing cost of living were the culprits.

Since then, four other restaurants in the area have made similar announcements: Bad Bones Ramen, Chinched Restaurant and Deli, The Nook and Cannery and Curry Delight in Mount Pearl.

Hospitality Newfoundland and Labrador's beverage sector representative and chef Todd Perrin says they're all being squeezed in a sector that's notorious for being difficult to survive in."I guess it shows us sometimes being loved is not enough, right? It's a tough business. Everybody knows that," Perrin told CBC Radio's St. John's Morning Show.

Historically, business drops off after the summer season, but across the country people aren't dining out like they used to, he said.

Perrin estimates that there are restaurants in St. John's that see a 40 per cent to 50 per cent drop in revenue in the fall, which is followed by a drop in business in the new year. As a result, he said, it becomes harder to make payroll and to pay the bills.

"I don't care how good you are at business. Trying to navigate that in a very short period of time, it's not easy to do," said Perrin.

"Speaking from the Hospitality Newfoundland and Labrador perspective, I mean, these small independent restaurants are the fabric of our culture and our city. And they're really what people come to see."

Squeezed out

Amy Anthony opened The Nook and Cannery three years ago at the site of the former Big R Restaurant in St. John's. Earlier this month, she announced she was closing her doors. The last day is Dec. 23.

She said the struggle to stay open is a constant for restaurateurs and that last winter was particularly challenging.

"There's only so much staff you can reduce and only so many days a week you can be closed to survive at all," Anthony told CBC News in an email.

The building she rented is also going on the market next year and she wasn't in a position to buy it either, she said.

"There are so many costs that no one sees," she said.

Anthony, who has been in the restaurant industry for years, doesn't plan on opening a new restaurant any time soon, she said. She's selling off The Nook and Cannery's equipment to help pay off loans.

"I unfortunately do not have backers, do not have bottomless pocket investors or oil money … behind me to pick me back up and pay the bills," she said.

"So [I'm] reevaluating how my business looks and if there is a future for a small business like this. I was lucky and successful, the system just failed me."

Established restaurant pivots

Chinched co-owners Michelle LeBlanc and Shaun Hussey announced they were closing the restaurant last week.

LeBlanc said it's part of the plan to restructure the business. They will keep the deli and wholesale portion running. LeBlanc said she also plans to offer catering services and prepared meals in the future, and they're working with their Bates Hill landlord to continue using the space for things like pop up events.

"The traditional restaurant model for us doesn't necessarily work anymore," she said.

"We're all aware that costs have gone up, food has gone up, labour has gone up," she said. "Basically everything has gone up, essentially, and we are not able to pass that on to the consumer anymore."

LeBlanc said the pressures restaurateurs face are provincewide and the industry is still recovering from the COVID-19 pandemic.

Possible boost for holidays

Last week, Prime Minister Justin Trudeau announced the federal government is slashing GST/HST on some goods for a two-month period, starting next month. That tax break includes restaurant meals, whether it be dine-in, takeout or delivery.

Richard Alexander, speaking for food service lobby group Restaurants Canada, said that's a welcomed move and will make a big difference for restaurateurs.

"We have been lobbying the federal government very hard to provide some relief for Canadians and in particular our industry," Alexander told CBC News.

He estimates the tax break will generate a billion dollars in sales revenue for restaurants all over the country.

"That could mean the difference between the restaurant continuing to operate or shutting down and the communities losing these gathering places," he said.

He said Newfoundland and Labrador's decision to match the federal government with a pause on HST is also going to help local restaurants.

"It makes for a good Christmas for all Newfoundlanders and Labradorians and the restaurant industry."

Cyclical business

But the industry, as a whole, is cyclical, says Perrin, and there will be new restaurants popping up as others close.

His new restaurant, Rabble, opened in July and had a good summer. But, he said, he's facing the same pressures other restaurateurs face.

"You go from doing 120 people on a Tuesday night to doing 20 and, you know, you can't tell all the staff to stay home," he said. "You can't only open half the restaurant. I mean, that's just not how it works."

Sarah Norris, a hairstylist, and Jon Feltham, a journeyman welder, are embracing those challenges and have opened the Salt & Sail in Wesleyville, a 373-kilometre drive from St. John's.

They also have big ambitions for the space on Main Street in what was once the Norton's Cove Cafe.

"With Salt and Sail, we want to have a full brand. Like, we want people to feel comfortable when you come in. We want to develop this brand into something bigger and give back to the community as much as we can," she said.

However, there are still some challenges to operating the cafe, Norris said, especially with the menu that focuses on fresh food and vegetables.

Still, business has been booming, she said.

"Honestly, it's been so busy that I enjoy learning how to walk before we run because the summer, according to the outpour we've had thus far this fall, I can't even fathom how crazy it's going to be," she said.

Norris said opening the cafe means she and Feltham can spend more time with their children and be their own bosses. She added she also wanted to send a message to her kids.

"I wanted to show our kids that dreams aren't unreachable. If you do the hard thing, you can reap the reward and the benefit," Norris said. "And I wanted to show rural Newfoundland that if you think outside the box a little bit, you can still do it."

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