Local businesses brace for further losses as province expands lockdown

The announcement of new restrictions on restaurants and businesses Monday by the provincial government is “devastating” news for local business owners, according to the head of the Windsor Essex Regional Chamber of Commerce.

Chamber president Rakesh Naidu said Ontario’s return to a modified Step 2 of the COVID-19 reopening plan will lead to more business closures if financial assistance is not swift.

“It is a devastating development,” Naidu said. “No business, after having been through this for two years, could ask for anything worse to happen.

“We had hoped that this would be behind us and that the businesses would get the much-needed opportunity to somehow get back to survival but this (lockdown) comes as a big blow.”

Premier Doug Ford blamed the highly contagious Omicron variant for further restrictions that include closing indoor dining, theatres, concert venues, cinemas, sports facilities and gyms until Jan. 27 Caesars Windsor announced Monday afternoon it would also close its doors temporarily Wednesday at 12:01 a.m. through Jan. 26.

Personal-care services and retail stores are restricted to 50 per cent capacity, as are indoor wedding and funeral venues and religious services.

Certainly, it’s going to have an impact on our business going forward

In addition, the government said a return to in-class learning will be delayed until at least Jan. 17.

The measures take effect Wednesday, when the province’s chief medical officer will reinstate a directive ordering hospitals to pause all non-emergent and non-urgent surgeries to preserve critical care capacity.

“We face a tsunami of (COVID-19) cases in the days and weeks ahead,” Ford said, adding that based on current trends, there could be “hundreds of thousands” of new cases daily, with the potential for one per cent of those affected needing hospital care.

Ford acknowledged the costs of a further lockdown will be “significant” and vowed expanded supports for small businesses, while saying the measures will “allow more time for vaccines and boosters” to be administered.

Rick Limoges, co-owner of Sandy’s Riverside Grill, agreed the restrictions will have a negative impact on many businesses including his own, at a time when inflation and the increase in the minimum wage are increasing costs.

“We certainly understand the expectation to keep everyone safe and we’ll go along with that,” Limoges said. “However, more than half of our employees will be laid off and the others will have their hours dramatically cut.

“Our costs went up with the minimum wage increase. Our costs went up for all the goods and services we buy,” he said. “Certainly, it’s going to have an impact on our business going forward.”
In addition to closing its casino operations, Caesars Windsor has cancelled all marketing programs, concerts, events, hotel and dining reservations during this time.

“The health and safety of our employees and guests remain a priority and we look forward to welcoming you back at a time when it is safe for our community,” said Kevin Laforet, President, Caesars Windsor.
All hotel guests will need to depart by 12 pm on Tuesday and the gaming floor will be closed by midnight on Tuesday.

Naidu said he’s working with the Ontario Chamber of Commerce in appealing to all levels of government for assistance.

“We are calling for all levels of government to expedite the support that is badly needed for businesses,” he said. “In the absence of sustainable and appropriate support, we‘ll end up losing a lot of businesses because as it is, businesses were hanging by their (finger) nails and this is a further blow.”

The chamber wants to ensure businesses “have the minimum support to keep the lights on, to pay their employees and to just make sure that they continue to exist,” Naidu added.

He said the chamber is looking for financial support – anything from small business loans and grants to deferral of loans, sector specific support or additional relief such as rent relief, from the government.

Mayor Drew Dilkens acknowledged the provincial announcement was difficult to hear.

“Thousands of parents are now looking to make arrangements for virtual schooling and hospitality sector employees are now wondering where their next paycheque will come from,” Dilkens said in a statement.

“While these public health measure aim to blunt the impact that Omicron is having on our public health-care system, they are a blow to businesses who were looking forward to 2022 with optimism.”

He committed to working with both provincial and federal governments to ensure that small businesses and their employees, who he said will be hit hardest by these restrictions, are able to access additional support programs in the weeks and months ahead.

— with files from Dave Waddell and CP

jkotsis@postmedia.com

twitter.com/KotsisJulie