As HST break on restaurant meals ends, owner of Fredericton diner tallies up

The federal government’s two-month sales tax holiday came to an end on Saturday, giving Canadians a break on the cost of essential goods, including restaurant meals. David Halfyard, owner of The Cabin restaurant in Fredericton, has seen a 15 per cent decrease in sales during the tax holiday period. While he believes the tax break helped attract some extra business, he is unsure if it was enough to change customers’ spending habits in the long run.

Halfyard, like many other restaurant owners, had to raise prices more often than he would have liked due to rising costs. Despite the tax break, he acknowledged that customers are still cautious about spending money and are being conservative in their dining habits. The uncertainty in the economy has led to a decrease in overall spending.

Statistics Canada will release official data on the impact of the tax holiday at a later date, but Restaurants Canada, in collaboration with Open Table, collected data that showed an eight per cent increase in reservations in Atlantic Canada during the tax holiday period. Ontario saw a 23 per cent increase in reservations, indicating a positive impact on the restaurant industry.

Janick Cormier, vice president Atlantic at Restaurants Canada, emphasized the importance of extending the tax break to help restaurants ride out the economic turmoil facing the industry. She highlighted that many restaurants are operating at a loss or barely breaking even, and any incentive to attract customers can help improve the bottom line.

Customers at The Cabin had mixed reviews on the government spending, with some appreciating the relief on food prices, while others felt it did not influence their spending habits. Willis Storey welcomed the tax break as a much-needed relief, especially with the high cost of dining out and grocery shopping. However, others like Mike Jennings believed that the money could have been better spent elsewhere.

Jim Cormier, Atlantic Director for the Retail Council of Canada, noted that the tax break did not result in a significant increase in spending for retailers. While any incentive to encourage shopping is beneficial, he suggested that lowering corporate taxes would have a more significant impact on businesses.

As the tax break comes to an end, there is uncertainty over looming threats and tariffs from the United States. Tim Rissesco, president of Downtown Atlantic Canada, emphasized the need for long-term support for buying local to combat potential tariffs. He urged the Government of Canada to play a significant role in promoting local businesses and ensuring the sustainability of downtowns and main streets.

In conclusion, while the tax holiday provided some relief for consumers and businesses, there is a call for continued support and initiatives to boost the economy and encourage local spending in the face of ongoing economic challenges.