6.6 C
New York
March 29, 2024
Worship Media
Business

Struggling restaurants unsure where to turn with new pandemic restrictions in Ont. COVID-19 hotspots

TORONTO — Restaurants and small businesses took a financial hit early on in the pandemic when COVID-19 restrictions were first put in place, but now many eateries fear the uncertain future as Ontario hotspots revert to stage two.

On Friday, the provincial government introduced additional public health measures in Ottawa, Peel and Toronto after a sharp increase in new COVID-19 cases. The modified stage two restrictions will be in place for a minimum of 28 days and reviewed on an ongoing basis.

The new restrictions prohibit all indoor food and drink service in restaurants, bars and other establishments, like nightclubs and food courts. Gyms and movie theatres have also been ordered to shut down.

“Restaurants aren’t really sure where to turn right now,” said James Rilett, Vice President and Ont. spokesperson for Restaurants Canada. He told CTV News Channel on Saturday that new indoor dining restrictions will limit nearly 80 per cent of a typical sit-down restaurant’s revenue.

“They’ve been looking at the bills that have been occurring throughout the pandemic. They were hoping they would start to get some revenue back,” he said. “Summer wasn’t bad, but now this might push them over the brink.”

Outdoor patios are still allowed to remain open under the new guidelines, but as the cold weather moves in many restaurants are questioning the feasibility of staying open past November.

Restaurant owners in Edmonton who received expedited permits to open temporary sidewalk patios over the summer are debating whether it’s worth the investment to keep those patios open through the winter with heat lamps and windbreaker screens.

The Ontario government has announced they will support businesses in the impacted areas with an additional $300 million in funding, including relief on property taxes and utility bills. More details on the new funding are suspected to be released in the coming days.

“It might have been enough before to just have some of your bills paid, but […] restaurants have a big debt-load that they have accumulated over the last seven months, and they were accounting on some revenues to start paying that down,” Rilett said.

“The provincial money is great, we’re happy to have it, but that’ll just help with some of the bills. It won’t help pay some of the debt-load that they’ve accrued,” he added.

Non-profit association Restaurants Canada is calling on the federal government to expand the newly unveiled rent assistance program to ensure businesses have access to support for as long as indoor dining restrictions are in place. They’re also asking for an amendment to allow management positions to qualify for funding under the Canada Emergency Wage Subsidy program.

When asked how many restaurants are expected to survive the second shutdown Rilett said, “It’s hard to tell depending on the severity and how much the government programs help.”

He added, “We still are estimating about half of independent restaurants will probably close down.” 

Click Here to Visit Orignal Source of Article https://www.ctvnews.ca/business/struggling-restaurants-unsure-where-to-turn-with-new-pandemic-restrictions-in-ont-covid-19-hotspots-1.5141060

Related posts

Walmart may join Microsoft in bid for video app TikTok

CTV News

Economy adds 64K jobs in September, unemployment rate holds steady at 5.5%

CTV News

How Canada’s inflation compares with other G20 nations

CTV News

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy