‘We are going to see a collapse of local business’
Shutdown of two Danforth pubs has BIA pushing for rent relief
The Brass Taps Pizza Pub and Old Nick — two landmark restaurants on Danforth Avenue — have made the agonizing decision to close for good, highlighting a desperate need for immediate federal help as others wait on “pins and needles” before they have no choice but to follow suit.
The imminent threat of more closures comes down to the new Canada Emergency Rent Subsidy — or CERS — and the extension of the wage subsidy to
June 2021as promised by Ottawa weeks ago in its speech from the throne.
The plans have yet to make it to the House of Commons for formal approval, which would give businesses the certainty they need in knowing they can count on these programs going forward. The wage subsidy is in play, but business say they are left vulnerable without a guaranteed extension. And without formal approval, CERS is not yet accessible.
The need is there for most Toronto small businesses, but the Danforth neighbourhood — with dozens of bars and restaurants — has been hit particularly hard, with COVID-19 decimating sales and costs mounting for businesses trying to operate at reduced capacities.
“People have poured heart and soul, to see them evaporate is devastating,” said Mary Fragedakis, executive director of the GreekTown on the Danforth BIA where the Taps operated.
“There’s all this talk that we are all in this together, but it feels like everyone
really is just in it for themselves … We are desperate to see the details of the rent subsidy program,” Fragedakis said.
Businesses have been on the hook for full rent since October without CERS in place, and with November’s bills looming, the heads of the Business Improvement Area (BIA) organizations along the Danforth strip say more closures will follow.
“People have been running on fumes,” said Colin Johnson, manager of the Danforth Mosaic BIA. “We are going to see a collapse of local business without uniform instructions from the government and (financial) support.”
The wage and rent programs are critical to business survival, and business owners and the BIAs say the federal government is taking too much time to confirm their accessibility.
“We are hanging on by a fingernail, especially our restaurants,” said Susan Puff, executive director of the Broadview Danforth BIA. “Our push has been to get government to understand how important this is.
You need to initiate quickly … It’s not rocket science. People need help now.”
It is as if the programs are lost in transition, they say.
The closure of the Brass Taps Pizza Pub and Old Nick, once so successful, vibrant and busy, stand as a sign of what is to come without these programs, the BIAs say.
Brass Taps Pizza Pub operated on the Danforth for 30 years, run by Will and Clare Sturm for the last 16 years. Nicknamed simply “the Taps,” Clare Sturm considered their business the friendly neighbourhood pub. They specialized in pizza and craft beer with a business driven 90 per cent by regular customers. Regulars and staff were so close to the owners, Sturm said they made up half of their wedding guests when the couple got married.
The Sturms closed per Ontario government orders in March. As restrictions loosened, they reopened and tried their hand at takeout to recoup losses. It didn’t work, and they didn’t qualify for a curbside patio because of their proximity to a stop light and turning lane, restrictions that also hurt a handful of other businesses.
They’re only hope was for capacity restrictions to ease so they could seat more guests; a wait that proved fruitless as the second wave took hold and Toronto became a hot spot for rising cases.
When October rolled around and the rent and wage subsidy programs proved uncertain, the Sturms knew they could not continue. They closed Oct. 9, leaving 12 employees out of work, including themselves.
“The numbers weren’t working to carry us through,” Clare Sturm said. “We tried everything we could.”
Will Sturm says the only saving grace financially was that their landlord allowed them to hand over the keys to their rented space without penalty.
The Old Nick has not been so lucky. While her landlord has been supportive, owner Kristine Lukanchoff remains the lease holder for the space until another lease is found.
Opened in 1993, Lukanchoff said the Old Nick has always seen ebbs and flows in business levels over the years. But as it relied heavily on live music, including serving local musicians and customers heading to Danforth Music Hall, it became clear she was fighting a losing battle.
Lukanchoff closed in March, and with “a cost hole that was getting deeper and deeper,” she has not — and will not — ever reopen, putting 10 people out of work.
The decision was so hard, Lukanchoff chose not to announce the news publicly before now. She couldn’t face any unfriendly kickback on social media.
“Margins (in running a restaurant) are so little,” she said. “Customers don’t understand the cost of the status quo.”
It is more than just restaurants on the line. Danforth is home to fresh food vendors, coffee shops, retail stores and business offices, as well as essential and lifestyle services — all “perfectly viable businesses outside the pandemic,” said Mosaic’s Johnson.
Both Fragedakis’ and Johnson’s business areas have seen as many as 30 business closures, including Pappas Grill, Athena Bakery, St. Louis Bar and Grill, Simple Fresh, VII Designs & Gifts and a realty office.
“Some businesses don’t have models that are conducive to surviving (in a pandemic),” Johnson said. “Independent businesses can’t operate on debt.”
For some business owners it is not just a loss of income, he continued.
“A lot of these business owners leverage personal assets against their business. They have more to lose than the business.”