May 11, 2020, Toronto, Ont. – A new survey from Restaurants Canada (RC) has revealed that most foodservice businesses might not have enough cash flow to successfully reopen their doors to diners.
As jurisdictions across the country move forward with lifting emergency measures, restaurants will need more support remaining viable until they are on a path to full recovery, the organization states.
About seven out of 10 survey respondents said they are either very or extremely worried that their business won’t have enough liquidity to pay vendors, rent and other expenses over the next three months.
While the Canada Emergency Commercial Rent Assistance (CECRA) program might provide some restaurants with relief, rent obligations continue to be a challenge for many. For example:
RC has published an open letter, calling on all levels of government to help foodservice businesses remain viable as they reopen their doors to diners and ramp up operations.
In the letter, RC president and CEO Shanna Munro commends the country’s restaurateurs for their responsiveness and innovation throughout the COVID-19 pandemic before calling for more government support.
“The creativity and resiliency of our industry won’t be enough to prevent widespread permanent closures as restaurants continue to struggle with insufficient cash flow and insurmountable debt,” she said.
The letter goes on to urge further action in the following areas where restaurants continue to need support to have a fighting chance at survival:
Restaurants Canada is a national, not-for-profit association advancing the potential of Canada’s diverse and dynamic foodservice industry. The industry has lost 800,000 jobs since the COVID-19 pandemic began and is on track to lose as much as $17 billion in sales over the second quarter of 2020.
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