Victoria restaurateur Terry Vassiliadis is blaming the haromized sales tax (HST) for the closing of his first franchise under the Eugene's Greek Restaurant banner.
"I haven't given up on the dream of franchising," Vassiliadis said, "but who would want to get into the restaurant business in B.C. when there are no profits anymore?"
His only franchised location is slated to close and the two corporately owned restaurants that he and his brother own are losing money.
In April 2010, 3,321 people ate at Vassiliadis' Shellbourne Street location in Victoria and each spent an average of $13.25 before tax. This past April, 2,409 people ate at the restaurant and each spent an average of $12.54 before tax, he said.
"The HST had an overnight effect," he said. "People are holding onto their money, and they're not coming as frequently."
Statistics Canada numbers, however, show that although British Columbians spent less on restaurant meals in each of the first three months following the new tax's implementation, spending increased in each of the next three months compared with the previous year.
According to Statistics Canada, restaurant spending in the last half of 2010 in B.C. was down about two one-hundredths of a per cent to $3.907 billion from about $3.908 billion in the last half of 2009.
from Western Investor July 2011
