OPENING SOON
Arno Oldach, who owns the Yard and Flagon and the Rook and Raven, closed both pubs due to the COVID-19 pandemic. But with reopening set for June 8, he’s worried about the future, saying business models are not predicated on 50-per-cent capacity.
Saskatoon pub owner Arno Oldach says he’s “getting a little antsy” watching restaurants and bars open in other provinces harder hit by COVID-19, while they remain closed in Saskatchewan.
Restaurants and bars are included in the third phase of Saskatchewan’s plan to reopen the economy after businesses were forced to close in March to prevent the spread of the COVID -19 pandemic.
The government announced Thursday that people like Oldach, who owns the Yard and Flagon on Broadway Avenue and the Rook and Raven in downtown Saskatoon, could open on June 8, set as the target date for the third phase.
“We should be open,” Oldach said in an interview Wednesday. “There’s no reason why we can’t be open at 50 per cent capacity. And nobody has a business model based on 50 per cent capacity.”
Unlike some restaurants that have moved to takeout and delivery, Oldach closed both the Yard and the Rook completely, laying off 75 staff.
His menus would not work well for takeout and delivery, he said. He’s doing some minor renovations and waiting for the nod to reopen and the rules, which are expected Friday.
The province said Thursday restaurants and bars would reopen at half capacity.
“I realize we’re being cautious,” Oldach, said, adding he mostly respects the provincial government’s approach to the pandemic. Oldach is considering a number of scenarios for reopening depending on what the guidelines say.
While he plans to reopen both locations, that might not be the case with other restaurant or bar owners, according to Jim Bence, president and CEO of the Saskatchewan Hotel and Hospitality Association.
Bence, whose organization represents 2,700 food service and hospitality businesses employing 40,000 people, noted many restaurants and bars make their money with packed houses on Friday and Saturday.
Operating at half capacity on those key days will hinder the ability of restaurants and bars to remain viable, Bence said.
He paraphrased an unnamed Saskatchewan restaurant owner: “I’m rushing toward bankruptcy faster by reopening than I am by staying closed.”
Some restaurants will need to spend about $10,000 to reopen and some will spend three times that, Bence said, adding that most restaurants that have moved to offering takeout and delivery are not making money from it.
Mark Von Schellwitz, vice-president Western Canada for Restaurants Canada, said the organization’s surveys of Saskatchewan members show 70 per cent are concerned that debt will impede their ability to reopen.
Surveys of Saskatchewan restaurant owners in March showed about half closed, 10 per cent likely closed permanently and about 40 per cent closed partly while still offering takeout or delivery, Von Schellwitz said. The numbers are similar to elsewhere in Canada, he added.
About 25,000 of the 40,000 people working in the provincial industry have been laid off, he noted, suggesting the next phase should come “as soon as possible.”
Restaurants Canada has produced a reopening guide that can be downloaded from its website.
Mitch Lupichuk, owner of the Capitol Music Club in downtown Saskatoon, made the reluctant decision to start a Gofundme campaign to keep the live music venue afloat.
Lupichuk has laid off 30 employees, postponed 30 shows planned for the 300-person venue’s sixth anniversary and is set to cancel 15 weddings. The Capitol just started making money last year, he said.
“We’ve been thinking about (reopening) every which way,” he said. “It’s almost like starting a whole new business.”