New Report Predicts More Restaurant Closures in Canada
A recent study by Dalhousie University reveals that last year saw a staggering 7,000 restaurants shut down in Canada, and the forecast for 2026 is equally grim, with another 4,000 establishments at risk of closure, particularly in Ontario.
The restaurant industry is facing mounting challenges on multiple fronts.
Sylvain Charlebois, a professor at Dalhousie University, points out that rising input and labor costs, along with changes to programs for temporary workers, are creating significant issues for many operators.
For Toronto restaurateur Richard Pinto, the impact of these pressures is all too real. As the owner of St Matthew’s BBQ Chicken, he has witnessed a sharp increase in costs across various aspects of his business, from food to packaging materials.
Pinto, who has run the family-owned restaurant for three decades, describes the restaurant business as a constant struggle, marked by highs and lows. Despite the challenges, he remains committed to keeping his establishment afloat.
The Ontario Restaurant, Hotel and Motel Association (ORHMA) highlights that many businesses are still reeling from the pandemic’s effects, with some struggling to recover fully.
Tony Elenis, CEO of ORHMA, emphasizes that Ontario, in particular, faces a severe situation due to its high concentration of restaurants. The loss of these establishments could have far-reaching implications for the province.
Industry experts stress the crucial role that restaurants play in driving tourism and enhancing the vibrancy of city streets. John Kiru, CEO of the Toronto Association of Business Improvement Areas, underlines the unique challenges faced by small restaurants and calls for support through targeted relief measures and policies to help them weather the storm.
As the industry braces for more closures in the near future, stakeholders warn that the landscape of Toronto’s dining scene could undergo significant changes, reshaping neighborhoods and impacting communities.
Keyphrase: Restaurant closures Canada
