Food inflation and higher wages and rents have all contributed to increasing costs for restaurants is outpacing revenue growth post-COVID leaving many operators with no choice but to close their doors.
Gahan House Harbourview in the capital city’s downtown is the latest to announce its closure effective August 31st, citing “incredible challenges” for the restaurant industry over the last three years.
Gahan House is owned by PEI-based Murphy Hospitality Group.
Jordi Morgan of Restaurants Canada says it’s a familiar refrain.
“The Murphy Group is a very well-run company” says Morgan, “they have a lot of really good outlets right across Atlantic Canada.” “I don’t think that this is a matter of them having difficulty in their management structures, it’s a matter of the economic realities, and a lot of restaurants that we’re talking to are in similar situations.”