Restaurant bankruptcies up 112 per cent over last year: CEO
The restaurant industry is still struggling to steady itself after the COVID-19 pandemic, as evidenced by a surging amount of declared bankruptcies across the country.
Kelly Higginson, CEO of Restaurants Canada, told CTV’s Todd Battis in an interview Thursday they have seen an 112 per cent increase in bankruptcies over last year.
“We are really concerned over this coming year because of the debt and all the inflationary pressures the industry has been hit with,” she said.
Restaurants Canada is currently calling on the Nova Scotia government to provide transitional support to restaurants as they grapple with minimum wage increases. Higginson cites provinces like Manitoba and Newfoundland and Labrador, which are providing $2 million to help small businesses transition to higher minimum wages.
“There’s a minimum wage increase coming and our operators have seen seven wage increases since 2020, which accounts to a 31 percent increase along with all the other increases,” Higginson said. “It’s been very volatile for operators these last four or five years. We’re looking for Nova Scotia to follow the lead of (Newfoundland and Labrador and Manitoba) and provide some breathing room and wage transition.
“We have 63 per cent of operators in our industry operating at a loss or barely breaking even and it was 12 per cent pre pandemic. As the fourth largest private employer in the province and a very labour-intensive industry, any impact to an increase in wages disproportionally hits our industry.”
Higginson said the industry brings in $2.7 billion to Nova Scotia and Restaurants Canada is hoping a wage transition could provide “breathing room” for operators to get out from under heavy debt.
“Adding that extra support for such a vital industry I think is going to make a big difference,” she said. “There’s definitely a sense (leaders) want to work with us."
CTVNews.ca Top Stories
Serial sexual offender linked to unsolved 1970s homicides of four Calgary girls, women
An investigation into unsolved historical homicides from the 1970s has linked the deaths of two girls and two young women in and around Calgary to a now-deceased serial offender.
Woman with liver failure rejected for a transplant after medical review highlights alcohol use
For nearly three months, Amanda Huska has been in an Ontario hospital, part of it on life support, because of severe liver failure. Her history of alcohol use is getting in the way of her only potential treatment: a liver transplant.
Dabney Coleman, actor who specialized in curmudgeons, dies at 92
Dabney Coleman, the mustachioed character actor who specialized in smarmy villains like the chauvinist boss in '9 to 5' and the nasty TV director in 'Tootsie,' has died. He was 92.
Information commissioner faces $700K funding shortfall, says system is 'overwhelmed'
Canada's information commissioner says her office is facing a $700,000 funding shortfall that could impact its ability to investigate complaints about government transparency and accountability.
BREAKING Craig Berube named as next head coach of Toronto Maple Leafs
The Toronto Maple Leafs have named Craig Berube as their new head coach.
Backlash over NFL player Harrison Butker's commencement speech has reached a new level
The NFL is distancing itself from controversial comments by Kansas City Chiefs kicker Harrison Butker during a recent commencement address.
B.C. man 'attacked suddenly' by adult grizzly near Alberta boundary: RCMP
A B.C. man is recovering from multiple injuries after he was "attacked suddenly" by an adult grizzly bear near Elkford Thursday afternoon.
Australia's richest woman seeks removal of her portrait from exhibition
Art is subjective. And while many artists long to share their work with the world, there's no guarantee that the audience will understand it, or even like it.
Person charged in random assault on actor Steve Buscemi in New York
A person wanted in connection with the random assault on actor Steve Buscemi on a New York City street earlier this month was taken into custody Friday, police said.