Welcome boost to restaurants struggling with crime

Ask any Manitoba restaurant owner and they’ll tell you it has never been harder to run a profitable restaurant.

There isn’t a single cause, but operators across the province consistently point to two major challenges: public safety and rising operating costs at a time when consumers themselves are struggling with affordability.

Nearly half of foodservice businesses have been directly impacted by crime, while 72 per cent believe crime and community safety issues near their business have increased over the past year, according to a recent national survey of Restaurants Canada members.

Restaurant owners share troubling stories from across the country: assaults and abusive behaviour toward staff and guests; robberies and break-ins; vandalism and arson; property damage that is costly to repair; and ongoing challenges related to drug use, public intoxication and vagrancy. Manitoba is particularly hard-hit by this issue.

The reality is simple. Crime makes people feel unsafe. It affects whether customers choose to visit a neighbourhood, whether employees feel comfortable coming to work and whether entrepreneurs see owning a restaurant as viable at all. On top of that are higher insurance premiums and the ongoing costs of repairing damage and replacing stolen property.

When we ask our members how they are responding, some tell us they are closing locations, relocating or reducing hours — especially late at night. Others report calling police more frequently or paying significantly more to maintain insurance coverage. But the most common response we hear is that restaurants are spending more and more money on security.

This increase in spending is compounding the challenge of rising costs and reduced consumer demand. Before 2019, roughly 12 per cent of restaurant businesses were operating at a loss or barely breaking even. Today, more than 40 per cent of restaurant companies across Canada are not profitable.

To put that into perspective, a restaurant that once generated a pre-tax profit of $200,000 on $2 million in annual revenue may now be fortunate to earn between $40,000 and $80,000 — if it is not losing money outright.

Like Manitobans, restaurants are facing sharply rising costs. Food, labour, insurance and occupancy expenses have all increased between 11 to 14 per cent over the past two years. At the same time, consumers under financial strain are cutting back on discretionary spending, and restaurant spending is the first thing they reduce.

Despite rising costs, restaurants have not passed along the full increase to customers because they know Manitobans simply cannot afford it.

Ahead of last year’s provincial budget, Restaurants Canada and the Manitoba Restaurant and Foodservices Association (MRFA) went to the Kinew government with a clear request for help. Our goal was to protect the workplaces of more than 39,000 Manitobans directly employed in foodservice, and thousands more whose livelihoods depend on a healthy restaurant sector.

We put forward a practical idea that would provide financial relief to restaurant owners while also improving safety for patrons and staff: a business security rebate. Similar programs already exist in other jurisdictions, and we believed Manitoba could build a better one that worked for our industry.

In our meetings with the premier’s office, ministers Adrien Sala, Matt Wiebe and others, we found a government that wanted to listen and understand the concerns of our members. They welcomed the opportunity to work with us to help protect jobs and to bring forward meaningful and actionable initiatives that would align with their agenda of being tough on crime.

That is why our industry was thrilled when, in Budget 2025, the Kinew government announced a $10-million commitment to help Manitoba businesses address the costs of crime-related property damage and investments in security measures.

Winnipeg Free Press | Newsletter

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What makes this initiative particularly strong is that it was designed with the realities of the restaurant industry in mind — something similar programs in other provinces have often failed to do. This program is unique because it offers funding on a per-location model and because each eligible business location can have up to a maximum of 75 full-time-equivalent employees. Other grant programs are not structured in this manner, and as a result, restaurants are often frozen out.

At $2,500 per restaurant location, these funds serve two critically important purposes at a time when our industry is under immense strain. They help restaurants stay open and preserve jobs, and they help businesses invest in measures that make their spaces safer for everyone who depends on them.

Restaurants Canada and MRFA are proud to support the Manitoba Business Security Rebate Program. It is urgently needed, and it sets a new national standard. As we engage with other governments across Canada, we will be pointing to Manitoba’s approach as the most responsive, thoughtful and effective model for supporting restaurant safety in the country.

To learn more or apply, visit www.manitoba.ca/justice/securityrebate.html.

Kris Barnier is vice-president for the central region of Restaurants Canada, and Shaun Jeffrey is CEO of the Manitoba Restaurant and Foodservices Association.