Canadian Restaurant + Bar Sales

[jamiemaw]

The banner headline on the cover of The Vancouver Sun's business section today reads "Jobs # 1 - B.C. leads the country" in job growth. Of the 90,000 jobs created year over year, food and lodging placed second (to manufacturing) with ome 8,000 new jobs produced.

But BC was only mid-pack in terms of restaurant and bar growth with a 1.3% gain.

Here are the stats, compliments of Statistics Canada:

Alberta +9.74%

Quebec +5.20

Newfoundland +4.78 (that must mean a new restaurant opened)

Saskatchewan +3.69

Ontario +2.98

BC +1.3

Some provinces actually lost ground:

Manitoba -3.34%

Nova Scotia -7.86

PEI -10.19 (that must mean that a restaurant closed)

New Brunswick -10.39

Edited December 4, 2005 by jamiemaw (log)

[SBonner]

Jamie,

Interesting stats. Do you know off hand the minimum wage of each Province? I'm guesingthere is alot of sports bars in Alberta

Cheers,

Stephen

[Vancouver Lee]

Given the frequency with which the folks around this forum eat out, I'm thinking there are some BC citizens out there who just aren't pulling their weight!

Jamie, do you know if the "growth" stats are net of closings, or do they represent openings only?

[300rwhp]

I wonder about the sports bar comment. You comment would be more accurate especially in comparison to bc if it were directed towards steak houses. BC is full of bars that are horrible for showing sports, and worse is keno and that racer cars crap. Due to massive growth in GDP per capita in ALberta many restauranteurs have realized the possibilities for profits, and as such have moved to open up shop there.

Edited December 4, 2005 by 300rwhp (log)

[jamiemaw]

Given the frequency with which the folks around this forum eat out, I'm thinking there are some BC citizens out there who just aren't pulling their weight! 

Jamie, do you know if the "growth" stats are net of closings, or do they represent openings only?

←

As far as I know the data reflects all restaurants and bars that reported GST year over year. I'm pulling my weight; finally, a night off.

[jamiemaw]

Jamie,

Interesting stats. Do you know off hand the minimum wage of each Province? I'm guesingthere is alot of sports bars in Alberta

Cheers,

Stephen

←

Province/Minimum Wage

Alberta $7.00

BC $8.00

Manitoba $7.25

New Brunswick $6.30

Newfoundland $6.25

NWT $8.25

Nova Scotia $6.50

Nunavut $8.50

Ontario $7.45

PEI $6.80

Quebec $7.60

Saskatchewan $7.05

Yukon $7.20

Interestingly, in the US, the minimum wage ranges from US$2.80 to US$8.00, with the mean being $5.15, which is the federal minimum wage. This lower labour component tells the story of why our restaurant service patterns are different in Canada. Canadian FOH staff are typically required to handle larger sections than their US counterparts, especially in the Casual Fine Dining sector where margins are low and volume is important. Thus the extrordinary investment in FOH training in the Canadian CFD sector--staff is expected (and incented) to do more.

Edited December 4, 2005 by jamiemaw (log)

[jamiemaw]

I wonder about the sports bar comment.  You comment would be more accurate especially in comparison to bc if it were directed towards steak houses.  BC is full of bars that are horrible for showing sports, and worse is keno and that racer cars crap.   Due to massive growth in GDP per capita in ALberta many restauranteurs have realized the possibilities for profits, and as such have moved to open up shop there.

←

I agree with you 300--the food service business is an accurate and rapid barometer of the general economy. When jobs are created, restaurants benefit quickly. More slowly, new ones open. With the Alberta economy far outstripping other Canadian provinces (sales of luxury items, especially automobiles, have dramatically spiked) it follows that we would see this kind of growth in restaurant and bar revenues.

More curious though are the BC numbers. This economy is also robust. I would have expected to see some slightly stronger growth here, even though we were starting from a significantly higher per capita restaurant spend and frequency of visit. So you could argue that provinces like Alberta and Quebec are playing catch-up. With those numbers it won't take long.

Edited December 4, 2005 by jamiemaw (log)

[fud]

^ Also remember that Alberta has the fastest growing population of young professionals. I think ages 25 to 40 dominate the entire province and bring a very vibrant growth to the economy there. This means a demand for good food.

[jamiemaw]

^ Also remember that Alberta has the fastest growing population of young professionals.  I think ages 25 to 40 dominate the entire province and bring a very vibrant growth to the economy there.  This means a demand for good food.

←

Excellent point.

[Junior]

In Saskatchewan, the provincial government implemented a non smoking ban across the province last July. This past week the government released a statement saying that for the first time in 18 months the province has had a decline in employment. The majority of jobs were in the service sector. I am not sure of the exact numbers either. Also our min. wage is increasing to $7.55 an hour this Janurary.

That growing population of young professionals comes from our province. The government is in a battle that they are continually losing due to our successful neighbour to the west. In trying to keep young professionals the government is almost bending over to keep people in 25- 40 age range here, for any reason, no matter what the profession.

Edited December 5, 2005 by Junior (log)

[bigdaddy]

More curious though are the BC numbers. This economy is also robust. I would have expected to see some slightly stronger growth here, even though we were starting from a significantly higher per capita restaurant spend and frequency of visit. So you could argue that provinces like Alberta and Quebec are playing catch-up. With those numbers it won't take long.

←

Growth statistics are relative and don't tell the whole story. As noted, BC'ers were already spending more per capita at restaurants.

Disposable income is the most important figure for the hospitality industry because, for the most part, we are considered a "luxury" item.

Even GDP figures and job growth are misleading if the distribution of wealth

is uneven and the jobs are low-paying (10 people making $100,000 are more beneficial than one millionaire when you want to fill seats on a regular basis!).

Edited December 5, 2005 by bigdaddy (log)

[James Kendal]

Albertans like to party (speaking from experience and having grown up in Edmonton).

University students are weened on Big Rock Beer.

There is a bar and liquor store on just about every corner in Calgary and Edmonton. The Calgary Stampede helps booze sales and, overall, its damn cold so what else do you do in the winter?