A local restaurateur is echoing the concerns raised by Restaurants Canada about the tight margins involved in running a food service business, and the difficulties with having to pay back federal government pandemic assistance loans.

Restaurants Canada is calling on federal Finance Minister Chrystia Freeland to extend the Canada Emergency Business Account (CEBA) repayment deadline and help out food service businesses, half of which are operating at a loss or just breaking even.

Restaurant owner Todd Perrin shared a post from Restaurants Canada showing the breakdown in costs associated with a $150 food bill. It shows that after initial food, labour, rent and utility costs, the final profit before tax is just 75 cents.

“So that means it takes $15,000 dollars in sales to generate $75 dollars in profit,” says Perrin.

CEBA was introduced during the pandemic to help restaurants and other businesses stay open. The repayment date for those loans is fast approaching with the forgiveness repayment date extended to Dec. 31.

Perrin told VOCM Open Line with Paddy Daly many restaurants took advantage of the CEBA loans and now that they’re due, a lot of restaurants are going to find themselves in a tough spot.

There’s no budget for CEBA loans, says Perrin, “so that’s going to have to come from extra money.”

Restaurants are barely making ends meet. New data shows that 50% of foodservice businesses are operating at a loss or just breaking even. This is why we are calling on @cafreeland to extend the #CEBA repayment deadline and give our industry a fighting chance. #OnTheirPlate pic.twitter.com/Dc9GPmOom5

— Restaurants Canada (@RestaurantsCA) August 16, 2023