Halifax, August 13, 2024 – Compared with the rest of the country, businesses in Atlantic Canada are overpaying for first-time patio permits by an average of $365, according to recent research by the Canadian Federation of Independent Business (CFIB). Among the municipalities mentioned in the report, the Atlantic average currently sits at $1,209 but is being heavily inflated by the City of St. John’s, where a single-space patio permit would set businesses back $2,765.
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 Duncan Robertson, Policy Analyst for Nova Scotia at CFIB . “The City of St. John’s now charges businesses over $2,500 for a patio permit, while other smaller cities across Canada, like Winnipeg and Saskatoon, have no fee associated with patio permits. 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.”
Following last year’s Atlantic Municipal Report, which highlighted the financial burden of sidewalk permits, the City of Moncton changed their permitting system to reduce the cost and red tape for business owners. The city now charges a flat fee of $350, rather than patio size, which they claim has saved the average business owner $450. Their application also only requires two supporting documents, the fewest in Atlantic Canada.
“It’s really exciting to see some of our regional municipalities updating policies to support our hospitality businesses,” said Robertson. “Unfortunately, other municipalities, like Halifax, actually raised patio permit costs since last summer. Municipalities must make it easier for business owners to set up patios to attract customers during the crucial summer season.”
Duncan Robertson, CFIB
(902)-580-4538
Duncan.Robertson@cfib.ca
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.