Sixty-two per cent of restaurants are operating at a loss or barely breaking even according to Restaurants Canada’s latest quarterly report.

That represents a 10 per cent increase over the last quarter.

Jordi Morgan, vice president of Atlantic with Restaurants Canada is in St. John’s to attend Hospitality NL’s annual conference.

He says the fact that so many restaurants are continuing to struggle post-COVID is a huge concern.

Among the greatest issues contributing to the bottom line is the rising cost of food and labour, something Morgan calls a “perfect storm.”

“It’s hard to get labour, labour costs are higher,” says Morgan and added to that, are higher taxes and food costs. “It is tough.”