Group calls on N.S. government to provide financial aid to restaurants struggling with minimum wage increases

Restaurants Canada is calling on the Nova Scotia government to introduce a financial aid program to restaurants struggling with annual minimum wage increases.

“These minimum wage increases have become more and more difficult to absorb over time,” said Jordi Morgan, VP Atlantic for Restaurants Canada.

Other provinces like Manitoba and Newfoundland and Labrador are providing $2 million to help small businesses transition to the higher minimum wage rates, which is estimated to provide financial assistance to 600 small and medium businesses.

“Those people who have minimum wage positions can apply and there are circumstances and criteria that they have to meet, and if they meet that criteria then the government will provide them with some financial support,” said Morgan.

Restaurants Canada said the minimum wage increase has unintended consequences for salaried employees making more than minimum wage. This includes back-of-house and kitchen staff.

The association found these employees are being denied increases because restaurant owners have to accommodate the minimum wage increases.

“A lot of restaurant owners I’ve talked to say they want to be able to afford to pay back-of-house staff as well but because they are forced to (make) these minimum wage increases that they are sometimes not able to do that,” said Morgan.

The association found other employees like servers in a mid-range, full service family restaurant in Canada earn on average a total of $62 per hour, therefore making it unfair to force employers to provide mandated minimum wage increases to tipped employees.

“Our main point here is, we want the government to understand and recognize that there are negative consequences to the minimum wage increase as well that we think they have role in addressing,” said Morgan.

Allano's in Halifax. (Source: Hafsa Arif/CTV News Atlantic)Jennielyn Antienza, co-owner of Allano’s in Halifax, begins her day with the familiar routine of opening her restaurant; however, each day is different, from the number of customers coming to how much money she takes home.

“There are days that you are in the negative,” said Antienza.

She said one of the biggest challenges in the industry are labour costs, so when wages go up, the prices of menu items follow suit.

“We have to increase the selling cost of whatever food we are selling, so the extra expenses we have to give to our employees. You have to do something for you to survive,” she said.

Antienza believes restaurant staff should see wage increases, especially with the cost of living going up, but also wants the support from government, saying it would help a lot.

“This will be their part to at least help us so we could survive,” she said.

Nova Scotia’s minimum wage went up $15.20 on April 1.

Restaurants Canada says it will be meeting with the province Thursday to discuss the program.

For more Nova Scotia news visit our dedicated provincial page.