Despite the reopening of dining rooms in recent weeks, unsurprisingly times are shaping up to be difficult for the restaurant industry in Quebec. In a recent survey conducted by the Association Restauration Québec (ARQ) amongst 580 restaurant management in Quebec, 61% of restaurant owners surveyed affirm that they will not be able to maintain their activities beyond six months under current operating conditions.
For a majority of respondents (57%), the current reception capacity is only between 40 and 60% of that before the pandemic. This reduction has resulted in 88% of operators currently registering 60% or less of sales made during the same period last year. For 45% of them, this is less than 40% of usual sales.
Despite this observation, 46% of restaurant owners in Quebec see the future with some confidence, against 29% who say they are “not at all confident”.
All cry out for help
Whether their establishment is small, medium or large, the closure of their dining room for three months has hurt restaurant entrepreneurs. Asked about the aid measures deemed most adequate to put in place by governments to help them, they demand, in first place, that they be granted direct aid (not a loan), followed, in second position, the extension until December 2020 of the Canada Emergency Wage Subsidy. Increasing the tax credit on declared tips to 100% and suspending the collection of the GST and QST on sales in restaurants for the next six months, come in 3rd and 4th respectively.
Difficult to bring back or hire employees
In addition, unsurprisingly, 57% of operators replied that they have had difficulty recruiting staff in anticipation of the reopening of their dining room, mainly due to the fact that people approached said they wanted to stay on the Canada Emergency Response Benefit, commonly known as CERB (66%). In 13% of cases, the refusal was associated with the fact of having found a new job. Another interesting data, 10% of restaurant owners indicated that the refusal came from the obligation to wear personal protective equipment (mask, visor or glasses) required by government authorities.
Profile of respondents and methodology
Respondents to the ARQ survey, numbering 580, are 66% independent restaurants. They mainly come from the Capitale-Nationale (16%), Montérégie (15%), Montreal (15%) and Laurentians (8%) regions. The survey was conducted online from June 30th to July 5th , 2020.
Highlights
91% of respondents say that their establishment is currently open. Only just over 8% say it is temporarily closed.
Few operators (16%) have decided to leave their dining room closed mainly because they consider that their reception capacity is insufficient in the current context to be profitable (43%).
The obligation for personnel to wear double protection (procedural mask + glasses or procedural mask + visor) is the standard that should be flexible as soon as possible from the point of view of a great number of operators (47%).
The rules of physical distancing to be observed in restaurants make it possible to occupy between 40 and 60% of the normal reception capacity of their establishment for a majority of respondents (57%).
16% of respondents say their current sales represent less than 20% than those usually achieved for the comparable period last year. For 33% of respondents, it is rather between 21 and 40% of usual sales and 29%, between 41 and 60%. Only 22% of respondents say their sales exceed 60% of those recorded in the same period last year.
61% of operators believe that the current situation will allow them to maintain their activities for a maximum of six months.
57% of operators responded that they have had difficulty recruiting staff in anticipation of the reopening of their dining room, mainly due to the fact that people approached said they wanted to stay on the CERB (66%).
46% of respondents see the future with some confidence, compared to 29% who are “not at all confident”. 24% of the respondents fall between the two categories.
The survey also presents a list of the aid measures deemed to be the most appropriate for governments to put in place to survive the crisis. Having direct aid (not a loan) comes first, followed by the extension until December 2020 of the Canada Emergency Wage Subsidy. Increasing the tax credit on declared tips to 100% and suspending the collection of the GST and QST on sales in restaurants for the next six months, come in 3rd and 4th respectively.
