Bankruptcies Surge by 55% in the Restaurant Sector

Inflation is significantly impacting restaurant owners, leading to a 55% increase in bankruptcies, a rate much higher than the pre-pandemic period, as reported by Richard Alexander from Restaurants Canada.

He notes that across the nation, restaurant owners are grappling with double-digit inflation, which is seriously affecting their financial stability. This is the reason they have been requesting relief in the repayment of the federal government’s CEBA loans, which were originally provided to assist restaurants in maintaining their financial health during the pandemic.

“The industry just didn’t have the opportunity to make money because of high inflation to be able to pay back those loans.” He says they, and the provincial government has asked for an extension to pay back the money, but as of right now, no relief has been forthcoming.