Working from home hits restaurant business revenues

The COVID-19 lockdown that compelled many Canadians to work from their homes is taking a large and expensive bite out of the nation’s restaurant industry, a new survey suggests.

The study, conducted by Dalhousie University in Nova Scotia and the Caddle research firm, suggests that the COVID-19 crisis will cost the restaurant industry $20 billion over the course of the next year, with 30 per cent of that loss attributable to telecommuting.

Among the 10,851 respondents polled about their expenses linked to telecommuting and food purchases, 23.6 per cent said they intended to spend more time working from home over the next year.

In Quebec, that proportion stood at 28.9 per cent, the highest of any province. Ontario was second at 24.8 per cent. “Millennials (1981-1996) have the highest percentage with 25.3 per cent,” the report said.

Of those who said they intended to work from home 57 per cent said they expected to be spending less on restaurant meals; the highest rate in the country is Ontario, at 59 per cent.

“A total of 36.4 per cent of respondents admitted that they enjoyed working from home more than expected prior to the pandemic. The highest satisfactory rate was measured in Quebec, at 38.5 per cent,” the report said.

A total of 36.8 per cent of those polled said that prior to the COVID-19 crisis, they went to restaurants at least twice a week. That proportion dropped to 23.3 per cent when the respondents were asked what they intend to do once the pandemic ends.

Among those whose employers planned to let a larger proportion of staff work from home, 52.9 per cent said they planned to do so permanently, and 70.1 per cent of those respondents said they intended to spend less money and time in restaurants.

The survey found that restaurants located in urban centres would be the hardest hit by Canadians’ changed work environments.

Adding to the potential financial impact was the possibility more people say they may move outside urban areas. “A total of 10.7 per cent of respondents are looking at relocating since telecommuting is possible. The highest rate is in Quebec, at 14.1 per cent.