By Pete McIntyre

Vernon restaurants among the businesses trying to weather the COVID-19 storm

Apr 1, 2020 | 11:13 AM

The restaurant industry has been one of the hardest hit by the COVID-19 crisis.

A new food price report said the pandemic has seen restaurants across the country close, or shift to delivery and pick-up models, and sales have plummeted at many restaurants.

The report by a University of Guelph associate professor and a Dalhousie University professor said Canadian restaurants typically generate more than $90 billion in annual sales, but the researchers expect $40 billion to $50 billion of that will shift to grocery stores throughout the pandemic.

Grocery stores have seen unprecedented demand as the pandemic spread with consumers stockpiling cleaning supplies, toilet paper and food.

The study said menu prices should “drop significantly” thanks to substantial disruption in the sector, and restaurants may have to become more competitive with pricing.

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However, it’s unlikely the shift from food-service spending to grocery stores will be lasting, said the authors, although that will depend on how long physical distancing recommendations are in place.

Vernon Mayor Victor Cumming told Vernon Matters restaurants are among the local businesses seeing a major impact along with hotels and tourism-support stores.

“That’s pretty evident in a walk around in any of the areas of our city where it is primary retail,” Cumming said adding grocery stores are about the only segment of retail doing well.

The local company that runs Wings Vernon and the Italian Kitchen, Pretium Group, said their revenues are down at least 80 per cent, as they continue to offer takeout and delivery service.

Vice President of Operations Katie Dahl said all restaurants in Vernon have been heavily impacted.

“As everyone knows, all dine-in operations are suspended until who knows when, at which point we will also reassess our ability to safely re-open,” she said.

Dahl said their plan is to weather the storm and fully re-open at some point.

“As a small business, like many others across Canada, we will be looking to the government for economic support. We’ll aim to fully re-open all of our businesses when the time is right but without the help of our landlords, lenders and suppliers aiding us to alleviate this financial burden, it’s possible they may not all make it,” Dahl said.

Rob Dew of the Italian Kitchen group stated he and his partner Nicole are at the restaurant every night cooking take out for their guests.

“We are doing our best and living by the motto ‘Don’t worry, be happy,'”‘ Dew said.

The Marten Brew Pub downtown has been closed for two weeks and laid off about 35 workers, but is now trying takeout service on word of the federal government’s 75 per cent wage subsidy program.

“Bringing back a manager, and maybe a staff member and a cook. We’ll start out small and try something new,” Clinton Bialas from the business told Global News.

But Bialas noted the pub may have difficulty providing the other 25 per cent of each worker’s salary.

“If that’s like $7,000 or $8,000 a month that we don’t earn any revenue on, then it’s rather difficult for small businesses,” she said.

by Pete McIntyre

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