Good afternoon.
Mr. Chair, distinguished members of the committee, thank you for inviting me.
My name is David Lefebvre. I am vice-president of federal affairs and Quebec at Restaurants Canada. We are the national restaurant association, representing over 30,000 members, including full-service restaurants, quick-service restaurants, catering services, bars or drinking places.
In normal times, our industry employs 1.2 million people, generates $93 billion in economic activity and serves 22 million Canadians every single day.
As you all know, these are not normal times. Since mid-March, the COVID-19 outbreak in this country has wreaked havoc on restaurant operators, with 800,000 jobs lost and close to a quarter of restaurants either permanently closed or thinking about shutting down forever over the next few weeks. More than half of our industry does not have any sales. Dreams are broken. Retirement hopes are broken. Careers are broken. Lives are in shambles.
Our people are ingenious in Canada through many circumstances, but right now some have both knees on the ground, and they need a friend. It is not a situation they like, and they did not choose to be in it. Our association fully accepts public health measures and our continued role, but we also request proper support. This is a time for action.
The federal government has implemented some terrific programs in the past month, ranging from the Canada emergency response benefit for workers and the wage subsidy to a series of loans for businesses and even support for young workers and students.
As we transition slowly from a time of emergency measures to a period of greater sustainability, Restaurants Canada would like to share its recommendations.
Without your help, the carnage in our sector will continue. According to a survey made public yesterday, 75% of our members describe their debt situation as serious or critical.
Canadian restaurateurs need sector-specific support.
Rent payment is by far the highest fixed cost in our industry. As the next step to ensure business continuity, it is essential that this be addressed by the federal government and its provincial counterparts. Without action, you will not be able to drive two blocks in a few months without witnessing tons of closed stores and massive desolation. It's going to be true in the 338 ridings across the country. Nobody wished that to happen.
Restaurants are different from other stores. Closing down seven weeks ago meant a massive loss in inventory. Fresh food was donated or lost. There's no inventory anymore. I mean no disrespect, but we're not a candle store or a clothing store that will not have lost most of their inventory. Even when reopening, it's going to be like rebuilding from scratch. It's just not possible to simply flip on the light switch.
Our members face a triple whammy of closure—often total—lost inventories and mounting bills. On top of that, operators have lost excellent employees who might not come back to the business after the crisis.
Today, we are sounding the alarm: help restaurants, the establishments that play a central role in our lives.
First, we recommend an immediate moratorium on evictions for commercial tenants, which would relieve pressure while stakeholders continue to develop solutions for the long term.
Second, we recommend rent assistance at a percentage in line with decreased revenue. Deferrals and loans are very helpful in the short term but, if not combined with relief mechanisms for the longer term, will contribute to more permanent closures.
Last, we recommend ongoing measures while the economy is still in recovery. That means maintaining rent relief measures until consumer confidence rebounds, the time it takes for business revenues to return to 70% of what they were before the crisis.
We also ask for tax relief, not only deferrals, which often just punt the problem to a later date. Granting waiver on GST and HST for a quarter would be a sound economic measure. Providing some form of subsidy based on a percentage of 2019 revenues is also a path that might be chosen to help restaurants. An extension of the wage subsidy qualifying periods would also truly make a difference.
Restaurants Canada is grateful for the steps taken by the government so far to help, but more is needed as we move into this transition period. Our sole purpose is for as many restaurants as possible to survive, so that our industry can fully contribute to this great country of ours.
We appreciate being able to share with you the experience from the front line of our industry. We would be more than happy to answer whatever questions the committee has, and we remain available to answer your questions for the benefit of all Canadians.
Thank you, ladies and gentlemen.