REOPENING TROUBLES
Restaurants face uncertain road ahead while some firms see customers increase
Revenues remain low
Weeks after being given the green light to reopen, just over half of Alberta small businesses are fully operating and they are only making a fraction of the revenues they were before the pandemic, suggests a business lobby group’s survey.
That 54 per cent figure is the second-highest number in the country, after New Brunswick. But, those businesses are only attracting 15 per cent of the revenue they had prior to the March pandemic lockdown, according to the May 22-June 5 survey of its members by the Canadian Federation of Independent Business.
“Although they may be open, it’s definitely not a return to normal,” said Annie Dormuth, the CFIB’S Alberta public affairs director.
She noted COVID -19 regulations limiting restaurants to 50 per cent seating capacity figured considerably in those numbers.
“That’s what’s most concerning — paying more around hiring staff back, buying PPE and having half the revenues; this new normal may not be sustainable,” said Dormuth.
The CFIB survey that garnered responses from 832 Alberta members also shows about 15 per cent of those businesses expected to go bankrupt while 24 per cent said they weren’t sure they’d survive.
After 10 days of resumed service, Niko Miletic admits his Kensington-area eatery faces an uncertain road ahead with revenues down by at least 50 per cent.
“It’s going to be tough for sure,” said Miletic, owner of Niko’s Bistro at 1241 Kensington Rd. N.W. “We wouldn’t be here at all without the good support from regular customers.”
Also helping were federal assistance and deferred bills, but the latter still have to be paid, he said.
“When it comes to September and October, I’m scared,” said Miletic.
The operators of the Garrison Pub, 2040 - 42 Ave. S.W., said they’re keeping their fingers crossed the early trend they’re seeing — increased consumer confidence in the face of COVID -19 — continues.
“We’re slowly doing better; we had a lineup out the door for the first time last Friday,” said general manage Shannon Roy.
Some staff members, she said, have elected not to return for various reasons, but regular customers have come back and takeout and delivery over two months of lockdown proved a lifeline, said Roy.
“We have the best following; we’re fortunate,” she said.
Some businesses say they’re surprisingly confident after emerging from the forced closure.
Fair’s Fair Books’ owners say they’re enjoying a silver lining due to the shutdown of Calgary Public Library branches, which could begin opening their doors June 19.
“We’ve gained that population of book readers. It’s been kind of a boom,” said Tami Neilson.
The two second-hand stores are about $7,000 ahead of sales projections since reopening in mid-may, she said.
“We’ve brought back everybody on staff except two people who are part-timers,” said Neilson.
Cool weather and stubborn nervousness over COVID-19 has meant a sluggish reopening for many of the city’s small businesses, said Sandip Lalli, president of the Calgary Chamber of Commerce.
“Revenues are about 10 per cent less than they forecasted … Restaurants aren’t turning tables as much as they’d like,” she said.
The performance of businesses in the third and fourth weeks of June will be telling, said Lalli, who expects to see more firms fall victim to the lockdown as summer arrives — also due partly to an economy already weak before the pandemic.
“Businesses coming into July aren’t going to make it because they’re over-leveraged,” she said.
But businesses can at least look forward to the timely arrival of summer, their busiest season, said Lalli.
It’s going to be tough for sure. We wouldn’t be here at all without the good support from regular customers.