“There might be closures”: In keeping with an skilled, Juliette & Chocolat might solely be the start

If gastronomy is at the moment in a moderately fragile section, the subsequent few months might grow to be much more essential. By December 31, 2023, the federal mortgage supplied throughout the pandemic have to be repaid, elevating “concern” within the business.

• Additionally learn: The proprietor of Juliette & Chocolat by no means thought she must shut all the things

• Additionally learn: Juliette & Chocolat: the ten closed eating places

The closure of the ten Juliette & Chocolat eating places may very well be a purple flag for a lot of different retailers. Proprietor Juliette Brun claimed in an interview on Tuesday that she was choking on the loans taken out throughout the pandemic.

And that state of affairs may very well be mirrored in a number of others within the coming months, whereas Affiliation de restauration du Québec vp Martin Vézina expects “additional closures.”

The principle motive is that this federal mortgage, the emergency account for Canadian firms, granted to avoid wasting the business throughout the pandemic. Most eating places should repay between $40,000 and $60,000 inside the subsequent 5 months or curiosity might be added to the necessary funds starting in January.

“The operators say: I can’t make it till the thirty first and I can’t begin paying in installments each month on high of all the things we’ve been paying. Right here you may consider in closures and bankruptcies.”

Even when the purchasers are current within the eating places, the revenue margins are nonetheless too small to hope for a reimbursement of the mortgage by December thirty first, explains Mr. Vézina.

In keeping with him, it takes $1 million in gross sales to pay again $40,000 as a result of restaurateurs’ revenue margins are usually round 4%. An virtually unattainable mission for some.

The Affiliation de restauration du Québec is asking the federal authorities to increase the deadline by not less than a yr “to make sure that one other yr of operation is assured to generate the required $40,000.”