The heart of communities across British Columbia is facing a severe threat, as new data reveals a staggering number of local restaurants are fighting for survival. Ian Tostenson, president of the B.C. Restaurant and Foodservices Association, has issued a stark warning, stating that almost 50 per cent of the province's restaurants are currently struggling due to a crushing combination of rising costs and declining customer visits.
A Perfect Storm of Financial Pressures
The crisis has been building momentum for years, exacerbated by the lingering effects of the COVID-19 pandemic and further strained by events like the 2025 BCGEU strike that disrupted liquor distribution. Tostenson points to a triad of escalating expenses: soaring food costs, increasing labour wages, and climbing commercial rents. Compounding this is a worrying drop in customer traffic, creating an unsustainable financial model for many owners.
"The strike was particularly difficult because it came at a time when provincial employment regulations were already forcing restaurant operators to cut back on employment," Tostenson explained. The impact on jobs has been severe. According to Douglas Magazine, the industry shed 10,800 positions between September 2023 and the end of 2024.
Alarming Statistics Paint a Dire Picture
The scale of the downturn is captured in sobering statistics shared by the industry association. A sweeping 70 per cent of restaurants in B.C. have reported a decrease in customers. Even more concerning is the hit to profitability, which is down for a "mind-numbing" 81 per cent of establishments across the province.
This trend has pushed many operators to the very brink of bankruptcy, threatening a sector that Tostenson emphasizes is foundational to local identity and social cohesion. "Restaurants are at the heart of every community in B.C.," he stated, underscoring the broader cultural and economic loss at stake.
A Call for Immediate Government Intervention
In response to the escalating crisis, Tostenson and the association are making urgent appeals to the provincial government for relief. Their action plan includes several key demands designed to provide immediate financial breathing room and reduce operational burdens.
The calls to action include:
- Reducing provincial payroll taxes and encouraging the federal government to follow suit.
- Returning all or a portion of WorkSafeBC's $2.1 billion surplus to employers.
- Implementing recommendations from the Save B.C. Restaurants report, with a focus on cutting red tape and regulatory hurdles.
Tostenson recently discussed these pressing issues and the precarious state of the province's food services sector in detail on the Conversations That Matter forum. The industry's plea is clear: without targeted support and policy changes, the vibrant restaurant landscape that defines British Columbia's communities faces an uncertain and diminished future.
