BC restaurants under financial strain as sales and foot traffic decline

The restaurant industry is urging the province to take steps to relieve some of the financial pressures facing restaurateurs.

Restaurants Canada says the industry is the third-largest private sector employer in BC, the number one source of first-time jobs, and a significant contributor to tourism.

However, it says restaurants are shedding jobs, creating the largest year-over-year drop in employment of any province.

The group says the Labour Force Survey by Statistics Canada shows BC gained nearly 20,000 jobs, but employment in the restaurant and accommodation sector fell by 10,800 positions in the past 12 months.

In addition, nearly 5,000 jobs were lost between August and September 2024.

President and CEO of Restaurants Canada, Kelly Higginson, says restaurants rely on the boost provided by the busy summer months to sustain narrow annual profit margins.

“The recent decline in sales and foot traffic is discouraging, making it understandable that many operators make the tough decision to cut back on hours of operation, shifts and staffing levels.”

Restaurants Canada says the number of full-time positions in BC is 176,700, which is the lowest employment level since 2016 excluding the pandemic.

Food and labour costs are expected to be the top challenges for restaurant owners in 2025, while sales are expected to remain stagnant.

Restaurants Canada recommends a reduction provincial payroll taxes for employers and workers, returning all or part of WorkSafe BC’s more than 2-billion surplus to employers, and implementing a Tourism and Hospitality Stream to BC’s Provincial Nominee Program.

Higginson says the organization hopes to work closely with the BC government to reduce the financial strain faced by restaurant owners.

– with files from My Cowichan Valley Now staff