Like an economic form of long COVID, the effects of two years of on and off lockdowns will linger after the global pandemic has ended.
Small businesses have taken on an average of $166,000 in debt during COVID, and are facing a looming July 1 deadline to pay back provincial taxes and fees deferred during the pandemic. It would be a daunting prospect at the best of times and even more so when customers haven’t yet returned in droves, Mallough said.
“Many of the hardest hit restaurants will continue to struggle through the recovery period due to high levels of debt accrued over the pandemic, including these deferred payments,” said Restaurants Canada vice-president James Rilett in a prebudget submission to the government. “Restaurants Canada would like to work with the Ontario government to find a mechanism to identify the hardest hit businesses in need of continued support and convert these deferred payments into grants.
“After COVID-19 takeout and delivery sales continue to make up a much more important part of a restaurant’s sales mix … members are calling for this important recovery measure to be made permanent to allow restaurants a chance to recover and return to profitability in this new climate,” Rilett wrote.
'Another key demand of the Canadian Federation of Independent Business and other organizations, including Restaurants Canada, is government marketing campaigns to lure customers back into shops, restaurants and bars.' Don't want taxes luring anyone to where they don't feel safe!