TORONTO, Sept. 14, 2011 /CNW/ - Rising energy costs are taking a toll on
Ontario's $23-billion restaurant industry, according to an election
survey by the Canadian Restaurant and Foodservices Association (CRFA).
In total, 81 per cent of restaurant operators say rising energy costs
are having a negative impact on their business.
Rising minimum wage (80 per cent), red tape (79 per cent) and sales
taxes (77 per cent) are the next biggest issues identified in the
survey. Although minimum wage was frozen this year, it rose by 43 per
cent from 2004 to 2010, compared to an 11 per cent increase in
In addition, liquor pricing and regulations are one of the top
challenges identified by licensees in the survey.
"The restaurant industry presents a huge opportunity for Ontario to
create jobs, drive tourism and build vibrant communities," says Garth
Whyte, CRFA president and CEO. "The results of this survey point out
some of the challenges that government and industry need to address by
WHAT IMPACT ARE THESE ISSUES HAVING ON YOUR BUSINESS?
Rising energy costs
70% significantly negative + 11% slightly negative = 81% negative
Rising minimum wage
66% significantly negative + 14% slightly negative = 80% negative
54% significantly negative + 23% slightly negative = 77% negative
DOES PROVINCIAL RED TAPE AND BUREAUCRACY HAVE A NEGATIVE IMPACT ON YOUR
With more than 30,000 establishments across Ontario, the restaurant
industry employs close to 500,000 people, making it the fourth-largest
private sector employer in the province. Over the last two years,
however, the industry has lost more than 10,000 jobs due to rising
costs and slowing sales.
"Although minimum wage was frozen this year, seven consecutive years of
sizeable increases, along with rising energy and food costs, have had
an impact on restaurant operators and their ability to create jobs,"
says Ron Reaman, CRFA's Ontario vice president. "We need a policy
environment that helps these important businesses grow, prosper and
create more jobs at all levels."
The CRFA survey also finds that nearly three in four restaurant
operators (71%) think provincial politicians have lost touch with the
challenges that face small businesses, and only one in five (22%) agree
that provincial politicians understand the contribution restaurants
make to Ontario's economy.
CRFA has created an election tool kit to encourage restaurant operators
to discuss key issues with candidates leading up to the Oct. 6 vote
(online at www.crfa.ca) and will be meeting with the three major parties to discuss the survey
findings and ideas to stimulate growth.
The CRFA survey was conducted online between July 27 and Aug. 16, 2011
and is considered accurate within +/- 7.6 percentage points, 19 times
out of 20. A total of 164 restaurant operators representing 6,000
establishments responded to the survey.
CRFA is one of Canada's largest business associations, with more than
30,000 members representing restaurants, bars, caterers, institutions
and other foodservice providers. Canada's $61-billion foodservice
industry employs more than one million people in communities across the
Image with caption: "CRFA survey of Ontario restaurant operators shows top business concerns leading up to Oct. 6 provincial election. (CNW Group/Canadian Restaurant and Foodservices Association)". Image available at: http://photos.newswire.ca/images/download/20110914_C3080_PHOTO_EN_3258.jpg
Image with caption: "CRFA survey of Ontario restaurant operators shows top business concerns leading up to Oct. 6 provincial election. (CNW Group/Canadian Restaurant and Foodservices Association)". Image available at: http://photos.newswire.ca/images/download/20110914_C3080_PHOTO_EN_3259.jpg
SOURCE Canadian Restaurant and Foodservices Association
For further information:
To arrange an interview with Garth Whyte or Ron Reaman, contact Jill Holroyd, SVP Marketing and Communications, 416-738-7134 (cell) or firstname.lastname@example.org; Prasanthi Vasanthakumar, Communications Specialist, 416-649-4254 or email@example.com.