The closure of Brasseries T! suggests the start of a wave of restaurants which will close their doors at the beginning of 2024.
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“It’s really sad news, but it’s not unexpected,” reacted Maximilien Roy, vice-president of Restaurants Canada for Quebec.
One in four independent restaurants in the country do not plan to recover from debts incurred during the pandemic and could close in the coming months, according to a report from the organization released in November.
In Quebec, Brasserie T! was among the first to announce on Wednesday the closure of its restaurants, located in Montreal, Sainte-Thérèse and Brossard, leaving 130 employees behind.
Challenges
It was not possible to speak to the leader and co-founder of the group, Normand Laprise, who explained the reasons for the closure in a press release.
Although restaurant traffic was good, the company was unable to recover from the pandemic, which “occurred at the worst time in the network’s development,” it says.
“The operating costs of our production kitchen, located on Beaumont, were too high to supply only three branches. Therefore, our operations were loss-making,” we read.
Inflation also had its role to play, he added.
“These are elements that are experienced by many restaurant entrepreneurs,” notes Mr. Roy.
Maximilien Roy, vice-president of Restaurants Canada for Quebec.
Provided by Maximilien Roy
The cost of food and labor are the biggest challenges restaurateurs face, the report reveals.
To give restaurateurs a break, the restaurateurs association is asking for the postponement of the repayment of emergency COVID loans. The deadline is January 18 to repay $40,000 and thus keep $20,000 in grants.
Uncertainty
The day after the closure of Brasseries T!, the café-boutique Les Malins, on Le Plateau-Mont-Royal, in Montreal, announced that it was going to close its doors.
“You are aware that the catering sector is currently experiencing major challenges, and these have not spared us,” we explain in a Facebook publication.
These first closures come after a difficult 2023 in the sector.
During the first nine months of 2023, 511 establishments went bankrupt in the country, an increase of 48 compared to the previous year, notes Mr. Roy.