Over the last month so many have lost so much. We’re thankful for the heroes in our midst but small businesses have been hit hard and the restaurant industry has been decimated. Many of us are asking what can be done? In Canada we’re watching our leaders wisely react to science while rapidly developing a variety of societal and fiscal response measures. Thankfully weve seen our laid-off workers largely getting the help they need with more program the way. We’ve also seen a variety of good intentioned social media initiatives helping improve our morale and driving take out sales. What does this industry really need though? We need room to breathe while we manage our future. To get there we need absolute focus on rent relief not deferral. This is a different issue @innatbayfortune where we own our mortgaged land but for the vast majority of restaurants it’s vital. Postponing rent only benefits the landlord, delays the inevitable and hobbles a businesses ability to reopen. As an industry we’re also advocating for a return of our 2019 HST remittances. Do the math. This could save all small businesses giving us the flexibility we need to pay rent, order supplies and open back up. In the best of times opening a restaurant is a tremendous challenge, how will we get back on our feet in a few months? If you’re in a position to help please do, raise your voice and keep our policy makers focused on long term pragmatic solutions #onetable @justinpjtrudeau @restaurantscanada @chefmarkmcewan @chef_lynn @charcut @mallardcottagechef @eatdrinkvijs
The reason Tyson Clyke and Sherry Garnhum decided to open a new restaurant was simple — they're crazy about what they're cooking.
"We eat Mexican food on the daily," Garnhum said. "It's easy, it's fun. A lot of people like it."
CONTRIBUTEDPetra Ross is fed up with paying for high speed internet and receiving download speeds of less than 1.5 mbps.
Some Breadalbane residentsare fed up with the slow internetspeeds and limited options for
service in their community.
Residents have just two choices for internet — digital subscriber line (DSL) from Bell Canada DSL or satellite internet from Xplornet.
Some of the community is slated for an upgrade to Bell Fibre-Op, but homes inside village limits, along three kilometres of the Dixon Road (Route 246), are not on the list for upgrades.
Petra Ross, a Bell client living on the Dixon Road, says companies like Bell should do better for their rural customers.
“We’re not talking about a tinycompany, we’re talking about ahuge corporation that easily could
extend fibre-optic to everywhere,"she said. "They’ve got millions ofdollars from our tax money toameliorate our services and (inthe meantime) we’re told
we’re getting high speed and we’re not.”
In 2010, the P.E.I. government promised high-speed internet service to every Island household and signed a deal with Bell (then called Aliant). The telecommunications company would spend $8.2 million to install the infrastructure. In return, the provincial government agreed to renew their contract for land-line service for five years, a $12 million value.
At the time, then premier Robert Ghiz called the deal, “too good to be true”, as Aliant further discounted the province’s land-line telephone service by $2.5 million.
But what seemed like good value for money in 2010 is not holding up for customers 10 years later.
For the last four years, Ross
said her download speeds havehovered around 0.24 mbps, occasionally peaking at 1.2 mbps, yetshe is billed for high-speed service.
“You can’t even send pictures,” she said.
“The government offices are closed, and you need to use the internet to get your CERB, or whatever. Any information on anything through the government needs to be done over the internet. And here we are sitting in this (internet) hole and we can’t get that. So I think the government is responsible — like a big deal responsible — for not allowing these services to reach everywhere.”
An educational assistant, Ross says the poor service also has impacts for rural students.
“It’s not a matter of not having enough computers, because you cannot operate more computers than one, at best,” she said.
A spokesperson from BellAliant said their DSL lines are getting old and are not the latest
technology. However, Bell saidthat the company continues tomeet the conditions of the 2010deal when high-speed internetmeant speeds between 1.5 and 7mbps.
Jeff Rahn, who runs a licensed tourist accommodation on the Dixon Road opted for Xplornet satellite internet service for his business. His service doesn’t seem to be any better.
“When people are here, we can have six or seven people on their devices, streaming,” he said. “(The connection) is 25 mbps, but we have a 100G data cap per month, so when that 100G runs out, we’ve got nothing, basically. You can chew through 100G in no time.”
Rahn isn’t operating a B&B this summer, keeping on his two winter tenants instead.
Still, halfway through the billing cycle, they’ve reached the 100G data cap and internet speeds drop to nearly nothing.
“There’s a business case to
make for having high-speed internet to adequately operate. If theprovince wants to ensure theeconomy is operating as it shouldbe — your tax dollars and whatnot— you’d think the priority wouldbe to ensure that this section ofthe community is picked up.”
In March 2019 the province announced $36 million of the P.E.I. Broadband fund would go to fibre-optic internet service for rural areas of the Island.
In March of this year, the province signed federalprovincial agreements with Bell Canada, Xplornet and Air Communications Inc.
Rahn was at a public meeting in December where he heard MLA Brad Trivers and Joseph Rowledge, a senior policy adviser with the province, say Xplornet would be installing fibre-optic internet from the hall, down the Dixon Road to the community limits.
Rahn has since heard that isno longer the case, but he hasn’t
been able to confirm what’splanned instead.
The province wasn’t able to provide an update to The Guardian either.
“Xplornet is currently in the design phase of the project, which includes determining the final locations and configuration of towers and fibre routing across the Island. Therefore, we cannot provide specific location details at this time,” said an email from the Tourism and Economic Growth Department.
Email inquiries to the Internet Plan (internetrfp@gov.pe.ca) were not returned.
Bell Canada confirmed that while fibre-optic network construction is ongoing in Breadalbane, Dixon Road is not part of the current plan.
“The scope of projects in allcommunities across the Islandwas developed in partnershipwith the government and basedon an approved list of civic addresses in each community,” said
the spokesperson.
Meanwhile, Ross is considering joining a class-action suit against Bell.
“They’re charging us for services we’re essentially not getting,” she said.
The representative from Bell said the P.E.I. government is open to discussion about specific addresses not covered in the current plan and suggested residents contact internetplan@gov.pe.ca or reach out to Bell’s network team who can discuss it with the P.E.I. government.
A public meeting on the topic MLA for the area, Brad Trivers, is scheduled for Aug. 12.
SALTWIRE FILE PHOTOThe Canadian Federation of Independent Business suggests thousands of small and mediumsized businesses are at risk of closure due to the COVID-19 pandemic.
andrew.robinson @thetelegram.com @CBNAndrew
One in seven small- andmedium-sized enterprises (SMEs)
are at risk of closing acrossCanada according to a CanadianFederation of Independent Business (CFIB) report released Wednesday.
In Atlantic Canada alone, almost 8,500 SMEs are estimated to be at risk, accounting for about 12 per cent of all SMEs in the region.
"I think every business association and organization across the country understands the importance of re-emphasizing this message to consumers — that they can make an enormous difference with their buying decisions," said Jordi Morgan, CFIB's vice-president for Atlantic Canada.
"This is not to say that people arenot going to go out to the big boxstores, but if there's an alternativesmall business that you feel wouldbenefit from your patronage,we're asking you people to givethat consideration. These are yourfriends, your neighbours, the people that contribute to your community, and we think whenthey're having a tough time, theappropriate consumer response isto provide whatever support isnecessary."
The CFIB report compiled, low-end, mid-range and highend estimates for all provinces and territories. The high-end projection for closures in Atlantic Canada jumps up to 12,459 SMEs, almost 18 per cent of all those currently existing in the region. The lowend estimate of 3,645 SMEs accounts for about five per cent of those in Atlantic Canada. The estimates are based on information compiled in a member survey conducted June 26 to July 2.
"I think what you're seeing is a
lot of uncertainty from businessowners, and that explains some ofthe range here as well," said Morgan, who is based in Halifax. "Theuncertainty also stems from whatkind of economic activity they'regoing to be seeing over the nextnumber of months. Will you see arebound in consumer spending?"
CHALLENGE DOING BUSINESS
Vaughn Hammond, director of provincial affairs for CFIB in Newfoundland and Labrador, said with many public health restrictions still in place, businesses are finding it challenging to operate and are still sorting out the best way to move forward.
"The question then becomes, how do we make sure that we don't lose those businesses that are at risk?" he said. "We argue that certainly the government has to provide support, and if the consumer is able to, then they should do so as well."
A number of support programs and measures have helpedSMEs so far, with Hammond
lauding the Canada EmergencyWage Subsidy and Canada Emergency Business Account as programs that have been well usedand
beneficial. But, he said, the Canada Emergency Commercial Rent Assistance program has left many businesses reliant on landlords to act on their behalf.
"For the most part, they're able to deal with their labour costs through the wage subsidy, if they need it. But it's rent relief that a lot of our members in Newfoundland and Labrador are looking for," said Hammond.
"If the federal government isnot willing to come forward with asolution in terms of allowing atenant to receive the funding directly in order to help pay fortheir rent as opposed to relying ontheir landlord to apply for the assistance, I think that's the crux ofit for a lot of people. If they can'tpay their rent, they're going to getevicted. Right now, what they'regetting is deferred rent, which
means they'll still have to pay it.But if the revenues aren't there topay, then what do they do?"
According to a CFIB dashboard tracking business recovery that was updated Monday, most Atlantic Canadian provinces are close to the national averages. Nova Scotia (70 per cent) and New Brunswick (72 per cent) are both above the national average of 62 per cent for businesses being fully open. Prince Edward Island is trending well when it comes to businesses at or above normal staffing levels (45 per cent compared to 37 nationally) and business at or above normal revenues (33 per cent compared to 26).
"Prince Edward Island, theyhaven't been hit as hard as someof the other jurisdictions," Morgansaid, noting many businesses wereable to open earlier than in otherAtlantic provinces. He thinksoptimism is a bit higher in P.E.I.,and the report's data does reflectthat somewhat, as the mid-rangeestimate has only four per cent
(220) of SMEs on the Island at riskof closing.
SECTORS HURTING
The hospitality sector has been hit hard throughout the region. Hammond and Morgan both cite it as an important industry within their home provinces.
"I think that the Atlantic bubble has been an improvement," said Morgan. "Such a high percentage of the tourism sector comes from the region itself. But the bread and butter is people coming from other areas of the country, and with that not happening, I think that's where you see an enormous amount of concern for business owners."
The CFIB report also singles out the arts, recreation and events sectors for needing further help to make it through a very hard time. Morgan noted the summer is usually full of meetings, festivals and other events providing employment for thousands of people, but they have all just about vanished because of COVID-19.
"Under any circumstances, theseare very worrying numbers, because these are very importantparts of our economy," Morgansaid. "The small business sector isenormously important to Canada'seconomy, and it's enormously important here in Atlantic Canada .... We're going to be looking atgovernment over the course of thenext number of months to seewhat they can do to assist businesses and help them recover astime goes on. We're not out of thewoods on this one by any stretchof the imagination."
TERRENCE MCEACHERN/THE GUARDIANGrant Taylor-Paynter, a project co-ordinator with Cows Inc. in Charlottetown, stands next to some inventory in the company's warehouse area.
COVID-19 has had a devastating effect on revenue for Atlantic Canadian businesses, but it has also raised another problem for businesses that were shut down as a result of the pandemic – too much inventory.
"Folks are getting a sixweektourist season that probablyneeded three or four months toclear this inventory," said GrantTaylor-Paynter, a project coordinator with Cows Inc. in Charlottetown.
Besides the backlog of inventory, Cows has taken a financial hit as a result of COVID-19.
"We went from probably one of our banner years to all of the sudden the door being closed," said Taylor-Paynter, referring to the mid-March week when many businesses shut down due to the coronavirus pandemic.
For Cows, when retail outlets
closed, ice creams sales went tozero, and company projects wereput on hold, he said. Butter salesincreased early on because of theincrease in more people workingfrom home and baking. Cheesesales also continued, so the company had two or three people stillworking in shipping. About 30-40people, including storefront staff,work at the Cows Creamery inCharlottetown at 12 Milky Way.
The company's revenue has been down about 40 per cent in Canada and 60 per cent lower on P.E.I. compared to last year, he said.
But like many businesses, online sales have increased.
In terms of dealing with excess inventory, Cows is planning to host an outdoor inventory sale Sept. 17-20 at its Milky Way property.
Cows has about $50,000 worth of merchandise it is looking to sell off, such as Tshirts.
The company is currentlyreaching out to other businesses to
see if they'd be interested in setting up in a tent on the propertyand participating in the event.Ideally, Taylor-Paynter said thecompany would like three to fourlarge vendors, and some smallerones, to participate.
Taylor-Paynter hopes there will still be some tourism "bubble" traffic on P.E.I. in September that might be interested in making purchases and bring in some revenue.
"And also for us, to get started to bring inventory levels in line," he added.
The first Cows ice cream retail outlet opened in Cavendish in 1983. Since then, the business has expanded to about a dozen locations in Canada and two franchises in China.
Cows currently has about 250people working at its retail outletsacross Canada, which is half ofwhat staffing would be during anormal year. With the ongoing uncertainty around COVID-19 andthe possibility of another wave in
the fall and winter, Taylor-Payntersaid the company's plan is to moveahead, "but cautiously." He saidthe concern is how business willunfold from October to May.
"Currently, in the winter, our big business is in Whistler and in Banff.