The Covid-19 pandemic created significant negative impacts for a number of Canada’s economic sectors, causing numerous businesses to shut their doors— some even permanently. However, the pandemic’s impact was felt the most across the accommodation and food services sector, which still remains the furthest away from pre-pandemic employment levels. As a result, restaurants and bars across Canada reported that 2020 was the worst year for sales on record.
According to recent data published by Statistics Canada, sales in the food services and drinking places subsector declined by 8% to $4.2 billion in December, as increased public health restrictions further bore down on eating establishments. On an annual basis, sales at eating and drinking establishments across Canada fell by 28.2% compared to 2019, amounting to the largest drop on records spanning over two decades.
Establishments focused on catering, food trucks, as well as bars and taverns were the most affected by the pandemic’s lockdown measures, causing sales to slide by 48.3% in 2020. Conversely, limited-service food establishments, as well as those focused on fast food or takeout only suffered a 13.4% drop in sales.
Despite restrictions beginning to ease in some provinces in February, eating and drinking businesses will likely continue to face diminished sales until the vaccine is further underway and consumer confidence returns.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.