B.C.’s restaurant sector has been shedding jobs at an “alarming rate” over the past year, according to Restaurants Canada.
B.C. restaurants shed 5,000 jobs in just two months, between August and September, and a total of 10,800 between September 2023 and September 2024, Restaurants Canada says, citing Statistics Canada Labour Force Survey numbers.
And Restaurants Canada’s third quarter report found the guest count was lower this summer for 70 per cent of restaurants in B.C. compared to the summer of 2023. The quarterly report also notes a “staggering” 81 per cent drop in profitability.
“Restaurant operators rely on the busy summer months to provide the boost necessary to sustain their already narrow profit margins as they head into less busy periods,” Restaurants Canada CEO Kelly Higginson said in a news release.
“The recent decline in sales and foot traffic is discouraging, making it understandable that many operators make the tough decision to cut back on hours of operation, shifts and staffing levels.”
The association cites says the cost of doing business in B.C. is the main problem for B.C.’s restaurant sector – namely the high cost of food and labour.
“Without more political action on affordability and the cost of doing business, it’s unlikely that the situation for restaurants will improve in the coming months,” Restaurants Canada warns.
The association is calling on the B.C. government to take action to relieve cost pressures on the restaurant sector, including reducing provincial payroll taxes and requiring WorkSafe BC to return a $2.1 billion surplus to employers. It also recommends targeted immigration policies, through the provincial nominee program, designed to provide workers for the tourism and hospitality sector.
“Restaurants are feeling the pain of inflation and low consumer confidence, but so are the hundreds of thousands of British Columbians they employ, and the many other economic sectors that depend on the restaurant industry to remain profitable, such as fisheries and agriculture,” said Mark von Schellwitz, Restaurants Canada vice-president for Western Canada.
“The new BC government needs to make it a priority to support recovery for the restaurant sector.”
