Calgary, Brooks restaurants calling for reimbursements
Province urged to pay them for costs after the late call to delay reopenings
Calgary restaurant owners angry about the province’s last-minute decision to push back their scheduled reopening date want the government to reimburse them for out-of-pocket costs.
The Alberta Hospitality Association says its members were caught off guard by Premier Jason Kenney’s announcement Wednesday that certain businesses — including restaurants, cafes and pubs, as well as hair salons and barbershops — will not be allowed to open at 50-per-cent capacity until May 25. The announcement — which singled out Calgary and Brooks, two communities that continue to see a disproportionate number of COVID-19 cases — came less than 24 hours before many Calgary restaurants were set to reopen as part of Phase 1 of the province’s relaunch strategy, which began Thursday.
“If the government makes a move at the 23rd hour, they need to reimburse the restaurants,” said Ernie Tsu, who sits on the board of the Alberta Hospitality Association and is the co-owner of Calgary’s Trolley 5 brewpub. “Either stick to the dates and open up for the restaurants that were ready to go, or reimburse them for the inventories they’re going to have to throw out.”
According to the government, the decision to move the date was based on the most up-to-date information about the current state of the pandemic in the province, and was made out of concern for the health and safety of Albertans in settings such as restaurants that require greater physical proximity.
But restaurants say the late announcement has dealt another financial blow to a sector that simply can’t afford it. According to the hospitality association, one in 10 of the province’s restaurants have permanently closed since the pandemic began, while an additional 18 per cent expect to permanently close if conditions don’t improve soon. For restaurants still open for pickup and delivery, average revenues are only 10 to 20 per cent of normal.
George Haralabakos, owner of three World Bier Haus restaurants in Calgary, said he had planned to open his West Springs location on Day 1, even though he knew making a go of it with the new capacity restrictions in place would be difficult. He said he spent $4,500 on alcohol and $3,200 on food in advance of Thursday’s anticipated opening. “Alcohol can stay on the shelves. We can get away with it sitting there for the next 10 days, I’m not upset about that,” Haralabakos said. “But I am upset about the perishable food and the prep time that’s now gone if our food needs to be tossed.”
Haralabakos said he believes the provincial government must step in with some form of financial support if it wants its restaurant industry to survive.
“We’re not trying to be victims, but we are trying to find ways to survive,” he said.
On Wednesday, both Kenney and Alberta’s chief medical officer of health Dr. Deena Hinshaw expressed sympathy for businesses that had planned to reopen, but said there was always the possibility of change.
“I very much regret if any businesses have gone to expense but we made it clear when we outlined the relaunch strategy a couple of weeks ago that nothing was for sure,” Kenney said. “It would all depend on the numbers and the public health advice that we receive.”
Many businesses felt unprepared and unsupported when the government first announced the original timing for its relaunch plan at the end of April, NDP Opposition Leader Rachel Notley said Thursday. She said those same businesses that were forced to scramble to put plans in place for reopening have now been “blindsided” again, and said she supports the call for them to be reimbursed for spoiled inventory, cleaning costs, expenses related to procuring PPE and rehiring costs.
“It’s not so much about the decision itself (to delay reopening), it’s about how the decision was handled,” Notley said. “Reimbursement is necessary and fair. Businesses should not have been put in this position.”
So far, neither the provincial nor the federal government has announced any specific COVID -19-related aid for the food and beverage industry, though they have announced several aid packages designed to help small businesses. These include the federal temporary wage subsidy, federal loan guarantees through the Business Development Bank of Canada and Export Development Canada, and interest-free loans through the Canada Emergency Business Account.
The provincial and federal governments are also partnering on a commercial rent assistance program for small businesses, while the Alberta government has offered deferrals on taxes and utility payments for small businesses.
In an email, Justin Brattinga, spokesman for Alberta’s Economic Development Minister Tanya Fir, did not rule out the possibility of more aid coming. “We understand that many restaurants and bars in Calgary and Brooks are facing hardship due to COVID-19, and we encourage Albertans in these areas to support them by ordering takeout and delivery until they are able to open to the public,” Brattinga said. “We have implemented billions in measures to support businesses in Alberta, and we are continuing to consider further measures to support them during this crisis.”
Calgary Mayor Naheed Nenshi said Thursday he understands and supports the province’s decision to delay reopening for hospitality businesses and hair salons, though he said he wished the announcement was made sooner. He urged Calgarians to support local restaurants — particularly those that had restocked, made investments and were ready to open this week — through takeout and delivery orders.