Atlantic Canada's restaurant owners and small business operators are voicing their frustration and disappointment following the release of the federal government's 2024 budget, which they say has left their struggling sector behind.
'A Huge Missed Opportunity'
Luc Erjavec, Restaurants Canada's vice-president for Atlantic Canada, didn't mince words when describing the budget's impact on the food service industry. "It's a huge missed opportunity," Erjavec stated emphatically. "There's really nothing in there for restaurants and the food service industry."
The sentiment echoes across the region as business owners who have weathered pandemic shutdowns, supply chain disruptions, and inflationary pressures now face what many describe as their most challenging period yet.
Restaurants on the Brink
The situation has become increasingly dire for many establishments. According to industry data, restaurant closures have reached alarming levels, with one in five food service businesses actively considering shutting their doors permanently.
"We've never seen it this bad," Erjavec revealed, highlighting the perfect storm of challenges facing the industry. "It's a combination of inflation, labor shortages, and now the carbon tax increase."
Carbon Tax Concerns
The budget's timing couldn't be worse for many operators, coinciding with the April 1 increase to the federal carbon tax. This dual blow has left many restaurant owners feeling particularly vulnerable.
"The timing is terrible," Erjavec explained. "Businesses are facing increased costs from every direction, and now they're dealing with higher fuel costs and carbon taxes without any corresponding support."
Broader Small Business Disappointment
The frustration extends beyond the restaurant industry. Dan Kelly, president of the Canadian Federation of Independent Business (CFIB), expressed concern about the budget's broader impact on small enterprises across the country.
"There's very little in this budget for small business," Kelly noted, pointing to the government's focus on larger economic measures while overlooking the backbone of Canadian commerce.
Industry-Specific Measures Absent
Restaurants Canada had proposed several targeted measures that they believed could provide meaningful relief to the struggling sector:
- Extending the Canada Emergency Business Account (CEBA) loan repayment deadline
- Reinstating a temporary meal expense deduction to encourage dining out
- Providing targeted support for energy efficiency improvements
- Addressing labor shortages through immigration reforms
None of these sector-specific recommendations made it into the final budget document.
The Human Impact
Behind the statistics and policy discussions are real business owners facing impossible choices. Many operators who invested their life savings into their establishments now confront the prospect of losing everything.
"These aren't just businesses - they're dreams, they're livelihoods, they're community gathering places," Erjavec emphasized. "When a restaurant closes, it affects employees, suppliers, and the entire community."
Looking Ahead
As the budget implementation moves forward, Atlantic Canada's small business community is left wondering when - or if - their concerns will be addressed. The absence of targeted support has many questioning the government's understanding of the unique challenges facing small and medium-sized enterprises in the region.
The coming months will be critical for many establishments as they navigate increased costs without the safety net they had hoped for in this year's federal budget.
