Helping eateries reach the finish line with customer loyalty and government programs

In addition to operating seven restaurants in Winnipeg, Ibrahim “Obby” Khan (left) started an additional business during the pandemic: GoodLocal (right), an e-commerce platform for local products. supplied

As the world celebrates fresh beginnings at the start of the year, Canada’s foodservice industry faces the daunting task of surviving a traditionally slow period. Exacerbating this seasonal challenge are the financial losses many restaurants have incurred due to the coronavirus pandemic and increased barriers for attaining sufficient government support.

“We are heading into what is typically a slow season, and for a lot of the industry, this is compounded by COVID-19 making a resurgence and government support having been reduced to levels that don’t really help us,” says Ibrahim “Obby” Khan, president and owner of Shawarma Khan Inc. and Green Carrot Juice Co. “Customers are not coming back in the same numbers, and more restrictions continue to push us further down this dark path.”

Made up of seven venues – four specializing in Middle Eastern fare and three juice and smoothie bars – Mr. Khan’s enterprises have been mainstays of Winnipeg’s food scene, employing almost 100 people and contributing to the local economy. Since 2012, he regularly expanded his operations, alternating between opening a new Shawarma Khan or a Green Carrot Juice location a year, until the pandemic put a stop to this growth trajectory.

Since then, Mr. Khan has been fighting to keep his businesses open and his staff on payroll. “We had to pivot quickly, prioritizing takeout, reducing costs associated with labour and food, and adjusting opening hours. At the same time, we incurred a lot of debt just to be able to continue to operate,” he says. “It’s been a rough two years, and we’re just chugging along, barely keeping our heads above water.”

With the exception of one location, sales are well below pre-pandemic levels (one store even saw an 80 per cent drop in revenues). While government subsidies have helped to keep the lights on, recent changes in eligibility are limiting access to such vital support, says Mr. Khan. 

“When you’re down by a large margin and you don’t qualify for the support you need to survive, your reserves will be gone,” he explains. “In the past, some of our best stores, including one at the airport, have helped to support the other businesses during the slow season. But now that all have been decimated, the outlook isn’t great.”

After 20 months of efforts to support the foodservice industry, “closing the tap now doesn’t make sense,” believes Mr. Khan. “We have invested so much in supporting businesses with [government] programs. But if we stop before we’re at the finish line, these resources will have been wasted.”

He is calling on the government to “reassess the thresholds for the new Tourism and Hospitality Recovery Program to ensure support is enough to keep businesses afloat,” he says. “[Government programs] have been really effective before, but the new program isn’t making sense for us.”

Despite the challenges, Mr. Khan remains hopeful, especially since he’s seen a tremendous outpouring of support from the community. “We’re eternally optimistic,” he says. “I think a turning point will come by spring or summer. In the meantime, we hope that people will continue to be supportive. This can mean dining out or ordering takeout, ideally directly from the restaurant rather than third-party providers.”

A combination of adequate support – both from customers and governments – can ensure Canada’s restaurants can continue to play their vital roles in communities across the country, he adds.

To view this report on The Globe's website, visit globeandmail.com

To view the full report as it appeared in The Globe's print edition: Restaurants Canada