TORONTO, Aug. 14,
2024 /CNW/ - Small businesses across the country
are being charged up to $2,765 for a
first-time sidewalk patio permit, according to recent research by
the Canadian Federation of Independent Business (CFIB).
Outdoor patios provide a much-needed boost in revenue for
hospitality businesses who have been struggling with demand over
the past few months. According to CFIB's Monthly Business
Barometer, one in two (50%) businesses in the hospitality sector
claim insufficient demand is the biggest issue currently affecting
their sales.
"We saw municipalities remove multiple barriers to entry during
the pandemic by scrapping permit costs and reducing the number of
documents required for an application to allow businesses to adapt
quick and customers to dine safely outdoors, but most cities have
reversed their progress significantly," said Keyli Loeppky, Director of Alberta and Interprovincial Affairs at CFIB.
"The City of St. John's now
charges businesses over $2,500 for a
patio permit, Calgary requires
eight documents, and it can take up to eight weeks for a permit to
be approved in Toronto. The cost
of doing business is soaring, demand is down, and yet some
municipalities are making it even harder for local businesses to
stay afloat."
Some municipalities across the country have already committed to
making the patio process simpler for business owners. In
Winnipeg and Saskatoon, sidewalk patio permits are
completely free, and businesses are only required to provide proof
of insurance and a floor plan when applying for a permit.
Moncton now charges a flat fee,
rather than by patio size, which they claim has saved the average
business owner $450.
"We know from our data that restaurants, bars, and other
businesses in the hospitality industry constantly face significant
economic uncertainty," Loeppky said. "Our hospitality members cite
insufficient demand as the number one constraint limiting their
sales over the past few months. Municipalities must make it easier
for business owners to set up patios to attract customers during
the crucial summer season."
About CFIB
The Canadian Federation of Independent Business (CFIB) is
Canada's largest association of
small and medium-sized businesses with 97,000 members across every
industry and region. CFIB is dedicated to increasing business
owners' chances of success by driving policy change at all levels
of government, providing expert advice and tools, and negotiating
exclusive savings. Learn more at cfib.ca.
SOURCE Canadian Federation of Independent Business