A free-standing restaurant on two fears of bankruptcy

Un restaurant indépendant sur deux craint de faire faillite

Forced to close their doors because of the pandemic, thousands of restaurants in Canada and in Quebec could downright never reopen, is concerned about Restaurants Canada.

At the beginning of the month, the organization representing the interests of restaurateurs had already announced that, according to a survey of its members, 10 percent of owners of restaurants in the country had put the key in the door.

However, a new shot of probe unveiled Thursday indicates that the independent operators are, by far, the most affected by the crisis of the COVID-19. In fact, one establishment in two has argued that it did not survive the shutdown of the economy if conditions do not improve within three months.

In addition, the majority of companies with more than one branch expect to close at least one of them.

Approximately 75 % of restaurant owners are “very” or “extremely” concerned about their debt levels are increasing, while the bills continue to flood in, while the revenues have dried up, especially in small restaurants that were not able to capitalize on the delivery and take-away meals.

“Even the restaurant owners the most experienced of the difficulty to cope with their obligations of rent […] because of the unprecedented situation that we face,” stressed the president and ceo of Restaurants Canada, Shanna Munro.

According to the organization, reports of rents and loan programs can bring a little bit of oxygen in the short term for restaurant owners, but that will only move their debt problem. Restaurant Canada therefore proposes the establishment of a program of rent assistance that would be based on a percentage of income decrease.

The organization also calls for a moratorium on evictions in the business premises, the time to allow the caterers to make arrangements to pay their rent.

“The COVID-19 has had a devastating effect on the small business, and restaurants are among the most affected. Once the restrictions are eased, they will continue to need help in order to avoid having to close their doors due to debt levels that are insurmountable,” said Mrs. Munro by press release.

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