Grigio and gambling? Saskatoon wine bar adds VLTs as food and beverage sales slump
CBC
In a cozy side room near the back of POP Wine Bar in Saskatoon, VLT machines jingle under the glow of red light, giving customers a kitsch Las Vegas vibe as they sip ice-cold martinis and slurp back oysters.
Owner Christie Peters said it’s been a fun addition to her establishment, which typically sells high-end natural wines, champagnes, and caviar.
But the real reason she added VLTs is to raise revenue.
“I thought it was going to be some nice passive income that would subsidize what we're doing here and bring in more clientele,” she said.
Peters owns both POP and Primal Pasta in Saskatoon. She said neither turned a profit last year.
The chef has worked in restaurants since she was 14 years old and is well aware of how slim margins are in the industry.
But right now, she said, things are bad.
“I've never seen profit margins so low in my entire life,” she said.
According to Restaurants Canada, 44 per cent of Canadian restaurants are breaking even or losing money.
“Frankly, five years ago, that was just 12 per cent,” said Matt Triemstra, federal affairs vice-president of Restaurants Canada. “It’s a pretty bleak landscape out there for restaurants.”
Triemstra said 75 per cent of Canadians are dining out less often due to the higher cost of living. He also said restaurants are paying more for food, operating supplies, insurance and labour.
“We are one of the higher-esteemed restaurants in the city. But it is like a treadmill and I'm running on it as fast as I can and I'm worried that it's just going to keep accelerating,” Peters said.
She believes the slump has a range of causes — U.S. tariffs, the cost of groceries, wages, and an increasing reliance on technology like scheduling and delivery apps. She also sees customers tightening their budgets and consuming less alcohol.
Peters said it’s forcing her to get creative. In addition to adding VLTs, she’s launched a non-alcoholic botanical soda company called Be Magic to help diversify her income.
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