Several specialists agree that governments have a duty to help businesses, and more particularly restaurateurs. These same specialists even go for some suggestions for measures that could make it easier for restaurants to reopen their doors when this whole story of containment is over.
According to the most recent Restaurants Canada survey, 75% of food businesses are very or extremely concerned about their current debt levels and one in two independent restaurants do not believe they can survive. The same survey also reveals that some chains may have to close at least one of their establishments.
This is why most of the stakeholders believe that it is necessary and urgent that long-term measures be put in place. Businesses will continue to need support during the period of consumer spending recovery after the COVID-19 crisis.
In recent weeks, the federal government has announced a wage subsidy and a $ 40,000 interest-free loan available to businesses.
And just a few days ago, the government of Justin Trudeau, in partnership with its provincial counterparts, also struck hard by setting up Canada's Emergency Assistance for commercial rent to small businesses.
With this most recent announcement, rent for small businesses is reduced by 75% as the government grants loans to owners of commercial buildings to cover 50% of rents in April, May and June. The small business will have to pay 25% of the rental price and the owner will ultimately have to pay the balance.
Is this sufficient to allow restaurateurs, among other affected businesses, to minimize the impacts and plan for a large and normal reopening soon?
With regard to Daniel Dufort, senior director of external relations, communications and development at the Montreal Economic Institute, according to an open letter sent to La Presse, governments must ensure that businesses keep the cash they currently have available to them. be ready when normal activities resume.
This is how he adds that a property tax exemption could be one of the first actions governments could take. A tax holiday on goods and services (GST and QST) would encourage consumers to spend more and create demand.
As another possible measure, he points out that some restaurateurs have an important asset: their wine cellar! He suggests the lifting of restrictions preventing restaurateurs from selling wine directly to the consumer for a temporary period.
Currently, however, it is impossible to get a good bottle of wine from the restaurant without ordering a meal at the same time. Also, the sale price must be the same as that displayed on the dining room menu. For restaurants that have closed their kitchens, it is therefore impossible for the moment to think of this alternative to earn income.
In a crisis like this, as we have already mentioned, some adapt more easily than others. However, small businesses are crucial to families, communities and the economy of an entire country. They must therefore receive its share of the aid measures granted by governments.
