A recent study by Dalhousie University has revealed that a staggering 7,000 restaurants shuttered their doors across Canada in the past year, with projections indicating that another 4,000 may face closure in 2026, particularly hitting Ontario hard.
The restaurant industry is facing increasing challenges from all fronts.
According to Sylvain Charlebois, a professor at Dalhousie University, operators are feeling the squeeze due to rising input and labor costs, as well as changes to programs for temporary workers.
For Richard Pinto, the owner of St Matthew’s BBQ Chicken in Toronto, these challenges have become a harsh reality. Pinto highlighted how soaring costs have impacted every aspect of his business, from food to packaging materials.
With costs rising by as much as 20-30% annually, Pinto emphasized the struggle of balancing the need to stay afloat while ensuring affordability for customers.
Despite being in operation for three decades, Pinto acknowledged the demanding nature of the restaurant business, describing it as a test of resilience through highs and lows.
The Ontario Restaurant, Hotel and Motel Association (ORHMA) shared concerns about the industry’s recovery post-pandemic, particularly in Ontario, which hosts a significant number of restaurants and faces heightened challenges.
Various business associations, including the Toronto Association of Business Improvement Areas, echoed these worries, emphasizing the pivotal role of restaurants in driving tourism and the economic impact of their potential closures.
Both industry experts and local business leaders are urging government intervention through targeted relief measures and supportive policies to assist struggling small businesses.
Amidst these challenges, there are warnings of more closures on the horizon, which could lead to a lasting transformation of Toronto’s culinary landscape and communities.