As patio season returns to Atlantic Canada, the Canadian Federation of Independent Business (CFIB) is calling on municipalities to ease the burden on small hospitality businesses by eliminating or significantly reducing sidewalk patio fees. Despite more than half (55 per cent) of small businesses in the hospitality sector reporting weakened customer demand, many cities continue to charge hundreds of dollars in permit fees
“Small businesses use sidewalk patios to increase their seating during the summer months and capitalize on the tourism season,” Director of Legislative Affairs at the CFIB Duncan Robertson said. “At a time when governments say they are focused on supporting local, it is concerning to see them, at the same time, slap hundreds of dollars in fees on restaurants and cafes.”
While patio permit fees have increased in municipalities like Halifax and Fredericton, St. John’s has taken a different approach. The city recently reduced its sidewalk patio fees by 85 per cent, the most significant drop in the region.
“With long-term confidence in the hospitality sector still at abysmal levels, small businesses are looking for relief, not added costs. St. John’s cutting what were some of the highest sidewalk patio fees in the country shows what can happen when there is a real will to support the hospitality sector.”
During a period marked by increased uncertainty, escalating operational expenses, such as tax, wages, and fuel, patio permit fees only add to the burden undertaken by hospitality businesses in Atlantic Canada.
“The hospitality industry was among the hardest hit during the pandemic and continues to bear the brunt of inflation and weak consumer spending,” Robertson emphasized. “CFIB urges all Atlantic municipalities to review their patio fee structures and remove barriers that prevent small businesses from making the most of the summer months.”
Canadian Federation of Independent Business