A new survey from Restaurants Canada shows the sizeable impacts that the food and beverage industry in the country could be facing due to COVID-19.
The results of a survey released on April 23 show that 75% of respondents said they are either very or extremely concerned about their current level of debt.
The report states that if conditions don’t improve over the next three months, one out of every two independent restaurants does not expect to survive.
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Earlier this month, Restaurants Canada released a survey that showed around 800,000 jobs in the country’s foodservice sector had already been lost due to coronavirus.
As conditions continue to worsen and margins get smaller, Restaurants Canada’s recent survey shows that most multi-unit food-service businesses will have to permanently shut down at least one of their locations.
In the survey, three-quarters of respondents identified rent as a main source of debt for their operations.
“Even the most experienced restaurateurs are struggling to meet their rent obligations, through no fault of their own, due to the unprecedented circumstances we’re all now facing,” said Shanna Munro, President and CEO, Restaurants Canada.
“COVID-19 has taken a devastating toll on small businesses, with restaurants being among the hardest hit. Even once restrictions are eased, they’re still going to need help to avoid closing down due to crushing levels of debt.”
Information for this survey is based on 914 completed responses to a Restaurants Canada survey conducted between April 15 and April 21, 2020.