It’s been virtually six months since Saskatchewan launched a six per cent provincial gross sales tax on restaurant meals. Now, restaurant house owners like Darren Carter of Beer Bros. Gastropub, are feeling the impression on their bottom line.
“I’ve worked in the restaurant business since I was 14 years old, and this is probably the hardest time it’s ever been,” he stated.
Overall, Carter stated his income is down 5 per cent. That quantity could appear small, however he stated the discount isn’t helped by prices of overhead, utilities, and different enterprise bills rising.
“Obviously, with less sales we need less people to operate,” Carter stated.
“So we didn’t specifically lay anybody off, but as people are moving on in life and people are going back to school and whatnot there are certainly positions we don’t have anymore, so we are definitely employing less people in the province of Saskatchewan today.”
Overall, Carter stated he’s down 4 or 5 positions and he’s not alone.
According to Restaurants Canada, 73 per cent of Saskatchewan’s eating places are contemplating lowering labour hours. Fifty per cent are contemplating layoffs as a consequence of the PST.
Restaurants Canada vp for Western Canada, Mark von Schellwitz, stated their information exhibits Saskatchewan is lagging behind the opposite provinces in restaurant income.
“It’s no surprise to us that Saskatchewan’s actually lost sales, and is the only jurisdiction in Canada that’s had negative sales growth,” he stated.
Other highlights from the June survey embody 84 per cent of restaurant house owners stated the PST will negatively impression their enterprise. Sixty-three per cent stated they’re contemplating extra promotions to get prospects by means of the door.
Twenty-seven per cent are taking a look at decreasing menu costs. For Carter this isn’t an choice.
“If you look at my line items on my financial statement every cost is up, but I’m not allowed to increase pricing because customers are only expecting so much,” Carter stated.
In a assertion, the provincial authorities acknowledged the issue dealing with restaurant house owners, however stated the change is critical as they shift away from an “over-reliance” on non-renewable useful resource income.
The province added that within the food and drinks gross sales within the first seven months of the yr are up $three.2 million in comparison with the identical time-frame in 2016.
Von Schellwitz stated that Restaurants Canada has pitched the concept of becoming a member of the province in a promotional marketing campaign to encourage residents to eat at domestically owned eating places in an effort to spice up income. He stated the province didn’t appear to have an urge for food for that.
The Saskatchewan restaurant business employs roughly 38,000 folks.
© 2017 Global News, a division of Corus Entertainment Inc.