Canada

Restaurants fear for their future amid alcohol rationing

The same ration amounts apply to individuals and to restaurants, regardless of size: three of any one product, no beer ration

The owner of Finn’s Seafood Chops and Cocktails on Wharf Street is “repulsed” by the province’s decision to restrict alcohol in government stores as it responds to job actions at distribution warehouses.

David Cooper said on Friday that the same level of rationing applied to a 12-seat cafe as to his 350-seat restaurant downtown.

“I just can’t understand what they were thinking.”

He understands the need to impose restrictions to prevent product duplication, but the way it’s been done shows “complete ignorance of business. … It just makes me sick. I feel bad for nightclub owners.

Finn’s is in high season and the restaurant sector has been hit hard by the pandemic. “We’re trying to make as much money as we can to get us through the winter,” Cooper said.

The restaurant has enough inventory to last through the upcoming weekend, he said, expecting the situation to become more challenging if it continues.

Many restaurants receive alcohol orders once or twice a week.

The province has announced that no more than three of each individual item can be purchased per customer per day at British Columbia-owned liquor stores. Beer purchases are exempt. This applies to both a business customer and an individual.

Four and six packs and other products in similar formats are counted as one product.

The restrictions came into effect after the British Columbia employees’ union began limited work action this week. Parcels are erected around four warehouses for the sale of alcohol. One is in Victoria.

The union is seeking wage increases and cost-of-living protections.

Shelly Gudgeon, who owns Il Terrazzo Ristorante with her husband Mike, is in a better position than many, saying, “We have a lot of inventory at this point.”

November is the restaurant’s 30th anniversary. Gudgeon is concerned about newer restaurant owners, saying they don’t have the extra cash to carry much of the alcohol inventory.

Jayme Beaudry, general manager of Zambri’s restaurant, moved quickly to stock up when the job promotion began. The restaurant that serves Italian wine is fine for at least two weeks.

She hopes other restaurants will stock up as well. “But if they haven’t had the chance since today, you’re actually out of luck, because you can’t pass with three bottles of wine.”

Ian Tostenson, CEO of the British Columbia Restaurant and Food Service Association, said the restrictions “couldn’t come at a worse time for our industry.” It has not yet recovered from the impact of the pandemic.

Along with labor shortages facing the hospitality sector, the restrictions could lead to the temporary closure of some businesses, he said.

No one knows how long the warehouse strike will last, he said.

He expects restaurants to focus on local produce, but said there is not an unlimited supply.

Under the new rules, which have no end date, restaurants can buy directly from BC wineries, craft distilleries and craft beer stores.

“The whole thing is a mess,” Tostenson said. It is a mess because of the uncertainty for business as the industry is unable to take this financially or with the current labor situation. “The consequences are real.”

People in the sector are angry and scared, he said.

Jeff Guinard, executive director of the Alliance of Beverage Licensees, predicted some products would sell out as early as this weekend due to the rationing. His group represents private liquor stores, bars, pubs and cannabis shops.

“Today we’re asking both parties to immediately come back to the table and find a deal because now this affects the entire $1.5 billion British Columbia alcohol industry, thousands of small businesses and the 200,000 workers we employ,” he said at a press conference.

Private liquor stores do not plan to impose similar restrictions on purchases, he said.

Some retailers have seen limited “panic buying” due to labor action, and distribution could worsen the situation.

Cannabis shops are also affected because their products also come from provincial warehouses behind bars.

Kevin Marr, assistant manager of Pineapple Express on Esquimalt Road, said the regular weekly orders arrive on Wednesdays. “I can definitely see our stock starting to go down a little bit.”

Right now, “there are some very popular products that we’re completely out of stock,” while others are in lower-than-usual inventory. Pineapple Express has alternative products for customers, he said.

No restrictions have been imposed on the sale of cannabis.

cjwilson@timescolonist.com

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