Toronto, August 14, 2024 – 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.”
For media enquiries or interviews, please contact:
Joseph Falzata, CFIB
(437)-352-7969
Joseph.Falzata@cfib.ca
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.