Restaurant Industry Sees Fifty-Five Per Cent Uptick in Bankruptcies

Inflation is taking a huge toll on restaurant owners, with bankruptcies up about 55 per cent—much higher than the rate pre-pandemic according to Richard Alexander of Restaurants Canada.

He says right across the country, owners are facing “double digit inflation,” which is having a big impact on the bottom line.

That’s why they’ve been asking for a break on repayment of the federal government’s CEBA loans, handed out to help restaurants stay solvent through the pandemic.

“The industry just didn’t have the opportunity to make money because of high inflation to be able to pay back those loans.” He says they, and the provincial government has asked for an extension to pay back the money, but as of right now, no relief has been forthcoming.

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