Survey: restaurateurs impatient to find their customers!

A survey carried out by the Association Restauration Québec (ARQ) among 1,217 restaurant managers in Quebec between May 6 and 11, shows that the industry is impatient to welcome customers back to the dining room. In fact, 72% of respondents say that they wish to reopen, even if they had to reduce the actual capacity of their dining room by 50% and, if they cannot do so, more than 60% of operators believe that their establishment cannot survive financially beyond 6 months.

Worry, viability

Uncertainty reigns among restaurateurs when 67% are already very worried or extremely worried about their ability to pay their rent, suppliers and employees, even in the coming weeks. They believe that it is rather a 75% capacity in their dining room that would make reopening viable (39%), or a 60% capacity in 22% of cases. Once this capacity threshold has been identified for a minimum level of profitability, only 29% think they will last between six months and a year, 22% between three and six months, and 14% less than 3 months. In contrast, only 27% of restaurateurs say they are able to continue their activities at this rate, past the one-year mark.

No choice to open and adapt
Almost half of the respondents, or 48%, set up a delivery or take-out service during the crisis, thus allowing them to keep a minimum of income. On the other hand, these sales will not have generated more than 30% of usual revenue for 76% of establishments that remained open. It’s less than 15% in 53% of cases. In the end, they claim, in a large proportion (67%), to have suffered more than 81% loss of income in April 2020, compared to the same month last year. A very small number (4%) would have suffered losses of less than 20%. In order to face the current situation, restaurateurs intend, in the short or medium term, to make changes to their business model, either by developing or increasing the take-out food offer (56%), by developing or by consolidating online orders (34%) or a delivery service (31%).
Help programs
Unsurprisingly, many have used one or more assistance measures offered by the provincial and federal governments. The most popular is undoubtedly the Business Emergency Account (loan of $ 40,000), which was requested by more than 80% of respondents, followed by the Canadian Emergency Benefit (CEP), in 46% cases. As for Canada’s Emergency Commercial Rent Aid (AUCLC), it was reported that only 15% of restaurateurs used it at the time of the survey.
"Our survey shows that Quebec restaurant managers are resilient in the face of the situation and that they will be ready to open their dining room in a safe manner for workers and customers while respecting the standards required by Public Health when they will have the green light to do so, ”commented François Meunier, vice-president of public and government affairs at the ARQ. "On the other hand, as the figures show, they are very worried and are living in a particularly difficult economic situation which will last for several more months. Under the circumstances, there is a need for food service companies to be able to qualify for direct financial assistance from governments, "he added.
The ARQ recently made 28 recommendations that could help the industry get through this crisis. For survey respondents, the best way to support them now would be to provide direct financial assistance, not loans, and therefore the assistance measures put in place to date should be improved or improved and the conditions to be able to benefit from it relaxed.

Will the employees be there?
Even if the restorers of Quebec are impatient to restart or continue their activities, a sword of Damocles hangs over their heads. Indeed, will they be able to have the staff meeting their needs? 63% of them fear the refusal of employees to return to work, whether in the kitchen, service or diving. More than half of respondents (54%) point to the Canadian Emergency Benefit (CHP), which pays much more for workers in the sector who often work part-time.
Portrait of respondents and methodology
Respondents to the ARQ survey are 63% of independent restaurants, they mainly offer counter and table service (49%) or, only, table service (42%). They come from all regions of Quebec and are 50% closed.

currently, or partially open for delivery or takeout (43%). The 1,217 respondents come mainly from the regions of Montreal (16%), Montérégie (13%), Capitale-Nationale (12%) and the Laurentians (9%). The survey was conducted over the Internet from May 6 to 11, 2020.
Highlights
- Restaurateurs say they are very worried (37%) or extremely worried (30%) about their ability to pay their expenses (rents, suppliers, employees, etc.) in the coming weeks.
- If the dining rooms do not open quickly, 30% believe that they will be able to remain in business only between one month and three months, 30% between three months and six months, 19% between six months and one year.
- 72% of respondents want to reopen quickly, even if the capacity allowed in the room was only 50%.
- 39% of respondents believe that it is rather a capacity of 75% which would allow them to be financially viable, 22% with a capacity of 60%, and 26% with a capacity of 50%.
- In connection with their previous choice of accommodation capacity to be viable, the respondents say they are able to hold out between six months and a year (29%), three and six months (22%), one month and three months (13%), or for a month (1%).
- The most widely used government assistance measures to date are the Business Emergency Account (loan of $ 40,000) (81%) followed by the Canadian Emergency Benefit (46%). Among the least used, Canada's Emergency Commercial Rent Assistance (AUCLC) (15%).
- 48% of the respondents set up a delivery or take-out service during the crisis.
- In 53% of cases, sales of delivery or take-out only covered 15% or less of usual sales.
- 67% of respondents lost more than 81% of their turnover in April, compared to the same month last year.
- Their biggest fears when reopening is whether customers will return (52%) and the viability of their business (22%).
- 63% fear the refusal of workers to return. The main reason for this fear (54%) is that the PKU for these employees is more profitable, while staying at home.
- The survey also presents a list of assistance measures expected by operators. Having direct financial assistance comes in first, followed by second to know the schedule and conditions for reopening the dining rooms. Improvements to Canada's Emergency Rent Assistance Program for Commercial Rent comes in 3rd.