Small businesses face 'bloodbath' in Ontario clampdown: Restauranteur
BNN Bloomberg
"It's very, very difficult for people to continue getting these restrictions, one after the other; businesses can not stay open"
Ontario's new rules aimed at curbing the spread of the Omicron COVID-19 variant may lead to a "bloodbath" for small businesses already struggling to stay afloat, according to one restaurant owner.
Mohamad Fakih, founder and chief executive officer of Paramount Fine Foods, an Ontario-based chain of Middle Eastern restaurants, said in an interview Tuesday he wants the Ontario and federal governments to provide additional assistance to affected businesses, notably those in the restaurant sector, to avoid widespread closures.
"It's very, very difficult for people to continue getting these restrictions, one after the other; businesses can not stay open," Fakih said. "We saw a lot of restaurants that were lost in our community because they couldn't stay open during COVID."
Ontario Premier Doug Ford announced the new restrictions Monday following what he described as a "tsunami" of new COVID-19 cases in the province over the past several weeks and as hospitals put off non-urgent surgeries as staff prioritize treating people suffering from the virus. Those new restrictions, which take effect Wednesday, include a ban on indoor dining as well as ordering gyms, theatres, concert venues, and many other indoor businesses to temporarily shut down. The measures will be in place until at least Jan. 26, the government said.
Fakih said that while he agrees with the latest restrictions aimed at stopping the spread of the Omicron variant, those new rules are likely to throw a wrench in plans for many small business owners who have taken on significant debt to keep their doors open during the pandemic. A recent study by the Canadian Federation of Independent Business (CFIB) found that small businesses have added an average of $190,000 in debt to stay in business despite various provincial lockdowns.
"By the time you create a repayment plan on your debts and the pattern of bringing some profit, they change the restrictions again and you start all over to replan your financial bottom line," Fakih said.