After the three Brasserie T! restaurants, managed by Normand Laprise, two other Montreal restaurants announced their closure in less than 24 hours. These are the Beaufort bistro, on Plaza Saint-Hubert, and the Les Malins café-boutique, on Mont-Royal Avenue.
Is this the start of a massacre? “It will not necessarily be a massacre, but yes, there will be closures,” predicts Martin Vézina, vice-president of public and government affairs for the Association Restauration Québec (ARQ).
These announcements reflect the difficulties experienced in this economic sector at the start of the year. Restaurant owners are struggling with significant increases in food prices and wages, combined with a drop in attendance since this summer. Many of them are still in debt due to their efforts to survive the pandemic. According to the ARQ, many of them have to refinance, through their financial institution, the $40,000 loan obtained through the federal government’s Canadian Emergency Business Account (CEBA), the Deadline is January 18.
“Will, in the coming years, with the economic slowdown, restaurants have good enough traffic to think about repaying this loan? This is a concern in the industry,” says Mr. Vézina. “With the fall a little moribund and a holiday season that may not have been in their favor, some restaurateurs will do the math in January and make a decision to close, because now is not the time to ‘they’re going to make it again. This is a historically low-traffic period. »
In the case of the Beaufort bistro, which had existed for around ten years, a significant increase in rent added to these challenges. “I couldn’t meet my financial obligations,” said the owner, Jean-François Girard, who is going through business and personal bankruptcy, in an interview.
He thus lost the $600,000 he said he invested in renovating the former Reitmans store where his restaurant moved in 2022. Until December, he hoped to find new investors to stay afloat. “But the outlook is not very encouraging in catering. Everyone is nervous,” said Mr. Girard, a few minutes after handing over the keys to his premises. He expects several more restaurants to close in 2024.
In a Facebook post, the managers of the boutique café Les Malins spoke of the major current challenges of the catering sector, affirming that “these do not [les] have not spared. “On the other hand, the traffic demonstrated that we were responding to a need in the neighborhood: we have not lost hope that an entrepreneur will take up the torch to continue to bring this unique place to life,” mentions the publication. This café where reading and gourmet sandwiches are featured is managed by Éditions Les Malins; it will close on February 8.
Both closures were greeted with great sadness by dozens of customers on social media.