Halifax, May 23, 2024 – 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%) 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. 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,” said Duncan Robertson, Director of Legislative Affairs at the CFIB.
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%, 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.”
For media enquiries or interviews, please contact:
Duncan Robertson, CFIB
(902) 580-4538
Duncan.Robertson@cfib.ca
Methodology
Monthly Business Barometer: April findings are based on 417 responses from a stratified random sample of CFIB members to a controlled-access web survey. Data reflect responses received from April 2 to the 17. Findings are statistically accurate to +/- 4.8 per cent 19 times in 20. Every new month, the entire series of indicators is recalculated for the previous month to include all survey responses received in that previous month.
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, including 10,200 in Atlantic Canada. 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.
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