Industry trends such as the rise of low-alcohol beer and wine are likely to continue to strengthen.
B.C.’s food and beverage industry is bracing for a potentially devastating blow in early 2024.
B.C. Restaurant and Foodservice Association CEO says 10 of the province’s more than 15,000 restaurants will have to wait until the federal government extends the repayment deadline for Canada Emergency Business Account (CEBA) interest-free loans made during the pandemic. ~14% may close, said the CEO of the B.C. Restaurant and Food Service Association.Ian Tostenson said BIV.
that Deadline is January 18th.
Restaurant owners who participated in the program applied for loans of up to $60,000 with an incentive of $20,000 forgiven if they repaid the balance by a future date.
According to Tostenson, someone who borrows $60,000 and doesn’t pay it back on time will not only have to pay back the full $60,000, but also have to start paying interest, which is a financial burden that many people cannot afford. He says it’s a burden.
“The next eight to 12 months are going to be tough,” he said. “We are in a worse situation now than we were during the pandemic.”
He said the average restaurant owner has been unable to pass on food price inflation to customers.
Often these owners take on debt to stay in business. If they face soaring interest rates on loans after January 18 and are unable to obtain bank loans, they are likely to close.
Tostenson said it hasn’t helped that diners are cutting back on spending and often lowering prices to offer appetizers instead of entrees.
Michael Lansky, owner of Terra Breads, said input costs for materials and labor have all gone up. BIV.
Broadly speaking, it makes it difficult to run a business, he added.
He recently closed the cafes at 2380 West 4th Street and 35 West 5th Street, but kept the large bakery space at the West 5th Street location.
“As for the stores that closed, it was just slow,” he said. “Transportation is important.”
He said the Granville Island and Olympic Village cafes remain open and “operating as usual” and there are no plans to close them in the future.
All employees at the closed stores have been offered work in stores that remain open, he added.
Robert Clark, a longtime chef and chief culinary officer at Organic Ocean Seafoods, also predicts many restaurants will close, which he believes may be healthy for the industry. ing.
“We’re going to come out better and stronger and win on the other side,” he said.
He believes a greater percentage of restaurants that survive next year will be those that provide a valuable experience, rather than just trying to get more customers or sell more food.
He said customers are shifting their spending from products to pleasurable experiences and restaurateurs should take note.
Some of these dining experiences include; vancouver international wine festival.
Restaurants such as Riley’s Fish & Steak, Boulevard Kitchen & Oyster Bar, Bacchus Restaurant, and Sing Sing and the Keg all host dinners where you can enjoy a multi-course meal with wine and hear about the wines from winemakers and winery directors. you can hear it speak. course.
Clark said he expects industry trends to continue, including a shift to lower-alcohol or no-alcohol wines and beers.
The same goes for technomics. Global restaurant trend predictions for 2024 report.
“The biggest development will be when major restaurant chains start lowering their surcharges for milk in lieu of hot or cold coffee or tea,” the industry research and consulting firm predicted.
He added that restaurateurs are also likely to adopt unconventional approaches to attract a wider range of customers.
The report notes that “donut operators are adding pizza ranges, chef-created menus at build-your-own chains, and perhaps inspired by the success of China’s Mixue Ice Cream & Tea, coffee… “Think of a chain introducing an ice cream line.”
“Also, look for brands that are expanding their late-night, late night, and evening menus by adding mouth-watering classics or new daytime specials. Brunch is a great option for sit-down restaurants, including all-day and late-night options. It’s going to be an important occasion and we’re going to repeat the breakfast/lunch hybrid.”
gkorstrom@biv.com
