Restaurants Canada estimates that 800,000 foodservice jobs have already been lost nationwide due to COVID-19 — about 95,000 just in Alberta alone — and they might not return if current conditions continue.

“Not only was our industry among the first to feel the impacts of COVID-19, we’ve been one of the hardest hit so far, with nearly two thirds of our workforce now lost,” said Shanna Munro, Restaurants Canada President and CEO, in a news release. ”In our 75 years of existence as Canada’s national foodservice association, these are by far the worst numbers we have ever seen.”

Restaurants Canada said Alberta’s $12 billion foodservice industry represents three to four per cent of the province’s GDP and is the province’s third-largest private sector employer. If conditions do not improve, Restaurants Canada estimates that Alberta’s foodservice sales for the second quarter of 2020 will be down nearly $2.5 billion.

A survey by the association found:

  • Four out of five restaurants have laid off employees since March 1;
  • Seven out of 10 foodservice operators will further cut back on staff hours or lay off more employees if conditions do not improve; and
  • Nearly one out of 10 restaurants have already closed permanently and another 18 per cent will permanently close within a month if current conditions continue.

“While our members appreciate the government relief measures announced so far, the reality is a growing portion of Alberta’s restaurateurs are considering permanent closure as they cannot pay their operating costs with no income,” said Mark von Schellwitz, Restaurants Canada Vice President, Western Canada. “Urgent additional relief is required to help these businesses survive or there will be fewer jobs for the thousands of temporarily laid off restaurant employees to return to once social distancing measures are lifted.”

Restaurants Canada are looking for assistance in the following areas:

  • Rent relief: Flexible arrangements are needed from landlords to allow for payment-free periods. Foodservice operators are looking for a coordinated effort led by government, coupled with no-eviction orders to relieve pressure. An injunction on evictions would allow time for governments to bring stakeholders to the table to develop immediate and long-term solutions that will work for all parties involved.
  • Access to working capital: With little-to-no sales revenue coming in for most foodservice businesses, many have already depleted their reserve funds, or soon will. Existing measures may need to be expanded and new solutions continue to be welcomed to ensure restaurants will have enough working capital to reopen their doors once physical distancing rules are lifted.
  • Labour: An expansion of the qualifying conditions and time period for accessing the 75 per cent wage subsidy would help restaurants not only keep workers on payroll but allow those already laid off to be rehired.