Restaurant revenues are booming, so why are so many losing money?

In today’s Big Story Podcast, last year, Canadian restaurants took in roughly $100 billion in revenue, more than the pre-pandemic year of 2019. This year it’s pegged to be $110 billion. Yet a third of all restaurants report they are losing money, up from just seven per cent before the pandemic.

Even as lockdowns eased and diners returned, a complex set of problems face restaurants in particular — and now the industry’s lobby group says we’re beginning to see double the number of restaurants closing than opening. 

Kelly Higginson is the president and CEO of Restaurants Canada. “I wish we had a simple, easy answer for [why restaurants are losing money]], because we might be able to find a better solution. But there are so many factors that have led to this situation,” said Higginson.

How did this happen, and how do we keep small, local restaurants afloat?