Restaurants seeing increase of empty seats as Albertans struggle with inflation

For many restaurants it’s an all-too familiar problem: more empty seats as Albertans try to save money during trying times.

It’s impacting restaurant owners like John Melia, who runs Ashford House Pub in Manchester Square.

“Everyone is feeling the pinch, and I think when it comes to people spending, they have to make a lot of cuts. And unfortunately this industry is one of the first to lose it because they have bills to pay,” said Melia.

“We opened up last February. We haven’t been open very long but what we forecast hasn’t come to bear. There is a nice group of people around, but people are trying not to spend money. So that, combined with food costs, we’ve definitely seen a fall in business sales.”

Melia says there’s been a decrease in customers coming in, especially over the summer. He believes people chose between attending festivals or dining out. He says people used to be dining in three to four times a week, and that’s just no longer the case.

“Our bread and butter is people coming in. And the more people come in, the more we can afford to pay our staff and utilities… Currently we’re luckily if we can take home a salary at the moment. Personally I don’t see myself taking home a salary until probably next year.”

Mark von Schellwitz with Restaurants Canada says many restaurants are feeling the pinch.

“The higher interest rates, and inflationary costs, it’s been a bit of a struggle,” said von Schellwitz. “And with respect to people dining out less frequently, just like we’re struggling because of the higher costs, and the higher interest rates, so are our guests.

“We’re an industry that relies on discretionary spending, and without that discretionary spending, when people have to tighten their belts, we’re often the ones that are impacted.”

In addition to post-pandemic challenges, von Schellwitz says food supply shortages, huge inflation rate and cost increases and labour shortages haven’t made things easier for restaurant owners.

He says even though after-inflation sales are still not where they were before the pandemic, restaurants in Alberta are in better shape than in other places in Canada, crediting lower costs and the provincial government’s extension of the gas tax credit.

“That’s not to say that we still don’t have problems,” he said. “We have an industry right now where 51 per cent, which we’ve never seen before, are either losing money or just barely breaking even. And that’s a real concern for the industry as it relates to a combination of those factors.”

The owner of Transit Smokehouse and BBQ says he’s facing similar issues.

“Things are tough,” said Ray Pritlove. “It’s a nightmare out there. It has been difficult at best of times, but to do it during COVID and then do it during the inflationary pressures, it’s been very very difficult.”

With Canada’s inflation rate now announced as up to four per cent for August because of gas prices, Pritlove says it never ends.

“Everything that goes up gets translated to our bottom line,” he said. “So they might say food is only up six per cent, but the transportation to get it there might be at eight per cent, so that gets added to it and everything gets added to it.”

Melia says he’s hopeful there will be an increase in customers this fall and he, like Pritlove, thanks his customers for all the support.