Takeout is booming, dining rooms are struggling, and P.E.I.'s restaurants don't know what's next

When Ethics Surani came to P.E.I. from India as an international student in April, he wanted to get a car, but it wasn't really in the budget. 

"I actually love driving," said Surani. 

"I want to go buy a car and I thought, DoorDash is some income to cover the expenses of a car."

He picked a good time to get into the fast-growing business of delivering food to people's homes. DoorDash had only been available on P.E.I. about 18 months. Similar services, such as Skip the Dishes and TopServe, are also relatively new to the Island. 

The pandemic has been a factor in that growth, but there's more to it than just lockdowns and physical-distancing rules. While the Island has been relatively open during COVID-19, the dining rooms of full-service restaurants are not doing near the business they did in 2019.

Meanwhile, limited-service restaurants — the ones that don't have table service and are more focused on takeout and delivery — have seen significant growth.

That works out for Surani, who likes the flexibility of DoorDash's business model, where he can just sign up to do some work whenever he feels like it.

"Whenever I'm free and I want some extra cash, I can just start it for a few hours," he said.

"It's on my schedule and I like working that way."

During the pandemic, people have been stuck at home for some periods of time, and others may well be nervous about sitting among strangers in a restaurant.

But that doesn't mean that they didn't want someone else to do the cooking. According to Statistics Canada, sales at limited-service restaurants on P.E.I. — from May through August — were up 7.9 per cent in 2021 versus 2019.

At the same time, full-service restaurants saw revenues drop 22.9 per cent. The growth in limited service was not enough to make up that loss. Overall, the industry's revenues are down 8.2 per cent.

The balance in the industry has changed in the process. In 2019, full service and limited service had roughly equal revenues. In 2021, a larger majority — 57 per cent — came from limited service.

Carl Nicholson, president of the P.E.I. Restaurant Association, said pandemic public health restrictions that reduced dining room capacity have been a factor in the loss of business.