'I've never seen it like this': B.C. restaurants closing amid economic hardship
After 13 years on Commercial Drive, Cannibal Café is shutting its doors.
“It’s very sad,” said long-time customer David Bircham. “It’s part of the fabric of our city.”
The owner, Matt Thompson, says the restaurant never fully recovered from the impacts of the pandemic.
“Insurance costs more money, rent went up three grand, property tax, hydro. There’s no money in it anymore,” said Thompson, who also said personal health issues contributed to his decision.
In the same week, Rodney’s Oyster House announced its Gastown location is set to close before the new year, and Tacomio, another Vancouver favourite for some, officially announced it’s also closing its doors for good.
“The severe impacts of COVID-19, escalating costs, rent hikes, government taxes and labour shortages have created an environment where continuing our journey has become untenable,” reads a post on Tacomio’s Instagram page.
That restaurant’s owner told CTV News that high costs resulted in him having to raise prices, which deterred customers.
“I’ve never seen it like this,” said Ian Tostenson, BC Food and Restaurant Association president. “Fifty percent of the restaurants in B.C. are either losing money or breaking even.”
Tostenson says amidst inflation and the high cost of living, customers have changed their habits and aren’t spending as much on dining out.
Adding to the stress for restaurant owners, the federal CEBA loan payments are due in January.
“I think that’s going to be the end of it for a lot of small businesses that just can’t pay it back,” said Tostenson.
Earlier this week, CTV News spoke with a café owner who’s turned to a GoFundMe campaign to help pay off debt.
“There’s going to be a lot more restaurants closing,” said Thompson.
Tostenson says several groups are lobbying the government to extend its CEBA loan repayment date to help keep businesses afloat. With inflation starting to drop and potential cuts to interest rates coming in 2024, Tostenson does see a light at the end of the tunnel for the industry.
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