1 in 5 businesses didn’t renew licences

For 2021, 8,008 shops can operate in Hamilton, down from 10,163 in 2019

Twenty-one per cent of Hamilton businesses did not renew their business licences this year compared to pre-pandemic levels, according to city data.

Many of the businesses that require a licence fall under the city’s public health and safety regulatory and inspection regime, including restaurants, taxi drivers and salons.

A non-renewed or suspended licence does not necessarily mean doors are closed for good — this information is not captured in the city’s data — but it does mean the business is not allowed to operate per Hamilton bylaws.

In 2019, 10,163 businesses were licensed in Hamilton.

When the pandemic hit in 2020, that number dropped to 8,262, and fell further to 8,008 this year.

“It’s a tale of two economies,” said Norm Schleehahn, the city’s director of economic development, pointing to accommodation, personal services and food as those sectors most widely affected by pandemic restrictions.

“Obviously, we’re trying to do what we can with the resources that we have as a municipality to assist these companies that are struggling,” Schleehahn said, while attracting businesses such as e-commerce and distribution companies that could help drive the economic recovery on a local level.

Just two seasonal produce vendors are currently licensed, down from 12 in 2019, and “refreshment vehicles” such as food trucks dropped 43 per cent to 89 licences. Food shops saw a decline of 14 per cent, down to 616 licences this year, and restaurants or “eating establishment” licences fell 10 per cent, to 1,301.

Personal service facilities, such as tattoo shops and hairdressers, dropped 16 per cent to 656 licensed operators this year.

The local construction industry took a hit, with a 23 per cent drop in licensed contractors — down to 860 this year — with a parallel decrease in masters’ licences, which are required if the business owner is also a tradesperson.

Licences for amusement sites such as go-karting or bowling alleys dropped by about 41 per cent to 19 this year. There is one licensed limousine owner in Hamilton, down from 17 in 2019, with just six licensed drivers.

Sectors that did not experience notable, if any, declines include payday loan operators, precious metal and jewelry dealers, adult video stores, mobile sign rentals and pet shops or kennels. The city also began regulating tree cutters last year, and now has doled out 39 such licences.

The 10,000 licences-per-year range is consistent with average levels seen in years prior to 2019, said Monica Ciriello, manager of the licensing division.

“We always listen to what the industry or the community is saying, and we see if we can make it a little bit easier for people to open here in Hamilton,” she said, adding that efforts to streamline the licensing process are part of the city’s “open for business” philosophy.

Licence processing, formerly done at a city hall service counter, was updated during the pandemic to allow for fee payments online or by phone. The city also granted extensions to pay fees, which can range from thousands of dollars for businesses like residential-care facilities, to a few hundred for certain food vendors.

The department does not have the authority to waive fees entirely — that decision rests with council.

Some of the industry-specific data coincides with trends that predated the pandemic, including the decline of adult entertainment venues.

Hamilton currently does not have any licensed adult entertainment “parlour attendants” — the licensing term for adult dancers and related strip club staff — down from 55 in 2019. Hamilton Strip, the city’s last strip club on Barton Street, shuttered in 2019.

The city also saw a significant decrease in licensed taxi drivers and operators leading up to the pandemic, Ciriello said, likely related to the advent of rideshare apps like Uber and Lyft. There was a 30 per cent decrease in taxi drivers between 2019 and 2021, and an 83 per cent drop in the number of taxis — down to 20 — operating with a limited interest agreement. In other words, these are taxis that are temporarily transferred a licence by a taxicab owner. The number of owners also went down 25 per cent to 433 owners. The two taxi “brokers” — Hamilton Cab and Blue Line — remained the same, Ciriello said