Newfoundland’s restaurants need more targeted assistance to survive COVID-19

Restaurants Canada welcomes the new Small Business Assistance Program and other commitments unveiled in today’s budget announcement, while calling for more targeted support for the province’s struggling foodservice sector.


ST. JOHN'S, Newfoundland, Sept. 30, 2020 (GLOBE NEWSWIRE) -- Restaurants Canada welcomes the commitments unveiled in today’s budget announcement to help Newfoundland and Labrador pull through the ongoing COVID-19 crisis, while calling for more targeted assistance for the province’s struggling foodservice sector.

“Not only was Newfoundland’s restaurant industry among the first and hardest hit by the impacts of COVID-19, the sector will also be among the slowest to recover,” said Luc Erjavec, Restaurants Canada Vice President, Atlantic Canada. “The newly announced Small Business Assistance Program is desperately needed and is a great first step. Restaurants Canada looks forward to working with the new Premier and his team to build on the commitments unveiled today, to provide more targeted assistance for the province’s foodservice businesses going forward.”

Newfoundland's hospitality sector remains hardest hit

According to a recent Restaurants Canada survey:

  • The majority of Newfoundland’s restaurants are still not profitable: 44% of survey respondents said they are operating at a loss and 25% said they are just breaking even.
  • More than half of restaurants still operating at a loss expect to take at least a year to return to profitability:
    • 4% said 6 months or less.
    • 24% said 7 months to a year.
    • 43% said between a year and 18 months.
    • 29% said more than 18 months.

About Restaurants Canada
Restaurants Canada is a national, not-for-profit association advancing the potential of Canada’s diverse and dynamic foodservice industry through member programs, research, advocacy, resources and events. Before the start of the COVID-19 pandemic, Newfoundland and Labrador’s foodservice sector was a $1.1 billion industry, directly employing nearly 17,000 people, providing the province’s number one source of first jobs and serving tens of thousands of customers every day. The province’s foodservice industry lost more than 5,000 jobs by April and is on track to lose as much as $528 million in sales in 2020 compared to 2019 due to the impacts of COVID-19.

 

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