Canada's three-month GST/HST holiday comes to an end, leaving local restaurants with mixed experiences. While some report increased business, others worry about the future amid economic uncertainty.
A three-month GST/HST holiday is coming to an end, leaving a mixed bag of reviews from local restaurants. While Restaurants Canada reports an overall increase in online reservations during the past two months, many establishments are expressing concerns about the future amidst trade tensions and looming economic uncertainty. Although initially celebrated by many restaurants in Ottawa, the tax holiday hasn't delivered the anticipated benefits for all.
The holiday, designed to provide relief for Canadians on the purchase of certain goods, including prepared foods, commenced in December and is set to expire on Saturday. Typically, restaurant sales experience a 10% decline in January and February. While the tax break offered a valuable boost during the industry's typically slower period, it has left many restaurants yearning for more substantial support. Magdi Bazara, owner of 3Cents Resto & Cafe in Ottawa's Heron Gate neighborhood, acknowledges a slight improvement but states, 'I might say it helped, but not as much as I expected, unfortunately.' His Yemeni-Egyptian café, which serves traditional food and beverages to a loyal customer base, had hoped for a more significant increase in patronage during the tax break. While the restaurant witnessed a rise compared to a lull in November, business in January and February remained sluggish compared to previous years. Similarly, Johny Bonney, assistant general manager of Lil Z's Pizza and The King Eddy in the ByWard Market, observed a modest increase in business but doesn't deem it substantial. He attributes the slowdown to various factors, including Canada-U.S. trade tensions, the threat of an economic recession, and a decline in downtown foot traffic. 'I think just the general malaise that's been felt over the last few months is that people are cutting back and making tough decisions,' Bonney explained. 'And I think restaurants are probably suffering as part of that.' Restaurants Canada, however, maintains a positive outlook, citing a 7.6% average revenue increase for the industry during the tax break. Maximilien Roy, vice-president of Restaurants Canada, emphasizes that while individual restaurant experiences may vary, the overall industry benefited. He points to an 18% surge in online reservations through OpenTable and the creation of 35,000 new jobs since November as indicators of a positive impact. Despite the mixed reviews, some Ottawa restaurants have reported tangible benefits. Anthony Epifano, owner of Merivale Fish Market, observed an increase in visits from his regular customers during the tax holiday. He notes, 'January ... we don't see a whole lot of new clientele, so having our regulars come out, it was nice.' While Restaurants Canada advocates for extending or making the tax holiday permanent, it remains uncertain when or if such a measure will be implemented. In the meantime, some restaurant owners express hope that the return of GST/HST won't significantly impact customer spending. 'I hope that at least once the GST is back, the customer will not feel the price is increased,' Bazara stated
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