How are small food businesses dealing with the loss of customers during the COVID-19 Pandemic?

A series of unprecedented government interventions related to COVID-19 were mandated in March, including the closure of non-essential undertakings, travel restrictions and public health initiatives that guide Canadians to limit public interactions. For the entire month of April, these steps persisted. Many companies began to reopen in May, offering take-out options. Some restaurants required dine-in and patio facilities under strict guidelines in some provinces. In June, restaurants began to reopen, with all areas permitting dine-in services under provincial guidelines. 29% of foodservice and drink location operators reported being closed at some point in June based on respondent feedback, compared to 42% in May and 56% in April. Even for the entire month of June, 12% reported being closed, compared with 22% in May and 41 % in April.

The repercussions of the COVID-19 pandemic have already been disastrous for the foodservice industry in Canada, with fears that it could get even worse. Restaurants Canada estimates that 800,000 food service jobs have already been displaced, and the industry lost around $4 billion in sales in March. The numbers are staggering. If circumstances do not improve, the company says that foodservice sales will drop by almost $20 billion for the second quarter of this year.

Let’s take a closer look at small owned businesses. Just located at the heart of the Queensway in Etobicoke is a community known restaurant, The Grille. The Grille is family-owned, ran by Jim Parthemos. In a recent interview with S@Y News, Jim Parthemos says, “COVID-19 has affected us like crazy. It’s apart of my livelihood, my family’s livelihood”. Jim Parthemos has had to start using food delivery services while applying for a wage subsidy, rent subsidy, and the small $40,000 business loan to prevent his restaurant from closing. As a result, he lost more than 70% of his pre-pandemic business.

While Jim has 30% of business back for now, with another lockdown on the way and colder months approaching, it is no longer possible to seat people outside on the patio. This will force Jim to depend solely on takeout orders and possibly only receive 10% of the pre-pandemic business as he did in March.

To keep The Grille open, throughout the winter, Jim Parthemos will use food delivery services such as Uber, DoorDash, and Skip the Dishes and plans to take the small business subsidy of $40,000 to reconstruct the outdoor patio so that it can be opened all year round. As for The Grille and the many other restaurants in Ontario, the only way to deal with business loss is by taking it day by day because these indeed are unprecedented times.