LCRB Bulletin 25-01: Bottle Service for LP Licensees & Bulletin 25-02: LP License for Outdoor Events
January 20, 2025
U.S. Liquor Back on BC Liquor Store Shelves for Now as Trump Delays Tariffs on Canada
February 4, 2025
BC restaurants (Food Primary Licensees) are experiencing a severe downturn, with significant job losses, declining profitability, and an unparalleled number of bankruptcies.
According to this Restaurants Canada article, the BC restaurant sector saw the largest year-over-year drop in employment, shedding 10,800 positions in September 2024 compared to September 2023. The Restaurants Canada Q3 report revealed that 70% of restaurants saw fewer guests this summer compared to the previous year, while a whopping 81% reported decreased profitability. Only 15% of restaurants rated the current business climate as “good” or “very good”.
Restaurants Canada is urging the BC government to implement measures to alleviate pressure on the industry, including reducing payroll taxes, returning all or a portion of WorkSafe BC’s $2.1 billion surplus to employers, as well as implementing the “Save BC Restaurants” (PDF) list of recommendations.
As reported in the CityNews article “Bankrupt restaurants in BC becoming commonplace”, now nearly 2-years after the end of the COVID pandemic, restaurants continue to struggle, forcing a record number into bankruptcy. Mark von Schellwitz, vice president of Western Canada for Restaurants Canada, stated that Q1 2024 saw the highest number of restaurant bankruptcies ever recorded in Canada, including hundreds in BC. In Canada, bankruptcies spiked to approximately 120 closures each month in January, February, and March of 2024. Von Schellwitz attributes the downfall to several reasons: high interest rates, operating cost increases, and menu price increases to offset high costs. Customers are tightening their belts, going to restaurants less, and spending less.
Both von Schellwitz and Ian Tostenson, CEO of the BC Restaurant Food Services Association, believe that things will turn around by Spring 2025.
Thrive Advisors Makes BC Food Primary Licensing Easier Than You Think!
Thrive Advisors is BC’s leading liquor license consultant. We work closely with restaurants providing food primary license application support, liquor license compliance audits, and compliance training.
