'I wouldn't wish it on anyone': Why many B.C. restaurants are struggling

There are days when Ron MacGillivray feels more like a prize fighter than a restaurateur.

After three decades in the industry, he has taken his share of hits, but after a bad year or two, he would get his feet under him again. Fable Kitchen, co-founded with Chef Trevor Bird, opened in Kitsilano in 2012. Two more restaurants followed, along with Michelin Guide recognition.

But lately, the punches have been landing.

“I feel like I’ve gone nine rounds and been knocked down every round,” he said. “I’ve been pummeled, and I don’t know how I’m going to make it.”

MacGillivray sold his house after the pandemic to keep his businesses going. Now, two of his restaurants are for sale, too, including Fable Diner & Bar downtown and Fable Diner at the corner of Main Street and Broadway. At the diner, which was on a Guy Fieri Food Network show in 2019, visits have dropped 45 per cent in three years as the Broadway subway line construction continues.

“I’ve been involved in restaurants my whole life,” said MacGillivray. “This is the worst stretch I’ve ever seen. It’s not coming back around.”

Any chef will tell you the restaurant industry is notoriously fickle. But MacGillivray isn’t the only one sounding the alarm. Several prominent B.C. restaurateurs and chefs told Postmedia this downturn feels different than the 2008 financial crisis and even the COVID pandemic — and that the malaise affecting the industry could be a sign of more widespread economic pain to come.

“It’s never quite been like this before,” said Robert Belcham, a chef and consultant for the Chefs’ Table Society of B.C. “Our success is really based on the public’s perception of how they’re doing. So if they feel like the economy isn’t doing OK, they won’t spend money at a restaurant.”

In Metro Vancouver, that perception is amplified by the high cost of living and an affordability crisis.

“People don’t have as much disposable income because so much goes toward housing,” said Belcham. “Restaurants already operate on tight margins, so there isn’t much room before something has to give.”

Businesses that have recently closed or announced they will be closing include the Main Street location of Goldilocks Bake Shop, which has been open for 18 years, and Rogue Kitchen & Wetbar’s West Broadway location. Longtime Chinatown dining destination Floata Seafood Restaurant closed abruptly after 30 years in business when the city terminated its lease in October, and Poor Italian Ristorante held its last dinner service in mid-December after 16 years in business. Other recent closures include Zefferelli’s Spaghetti Joint on Robson Street, Ramen One on West Broadway, and Pizzeria Farina on Main Street.

The reasons for some of the recent closures aren’t clear, but they aren’t limited to Vancouver, or to independent restaurants.

On the Sunshine Coast, Ricky’s Family Restaurant and Famoso Pizzeria closed in early January.

General manager Kim Whitford said business had slowed recently, with fewer customers. Food costs “jumped,” but the restaurant only raised prices a little — “but they’re still up there, and if you’re struggling to get by, you won’t go out,” she said.

The restaurant employed 18 people. They learned they would be losing their jobs during the holidays.

“It’s just sad,” she said. “Everyone is feeling the pinch.”

The numbers ‘don’t make sense anymore’

On the surface, Vancouver’s restaurant scene appears to be thriving: Michelin attention, international buzz, and another opportunity to shine on the world stage with FIFA just months away.

But the president of Glowbal Restaurant Group, Emad Yacoub, is watching his gas bill.

“Do I shut off the fireplaces?” he said of the striking design feature in one of his several successful restaurants.

Yacoub said eight years ago, the gas bill was $10,000. Now it’s $22,000. What was once a $60 steak is now $120, but he can’t charge that if he wants to keep customers happy. Labour costs are up, so is food and rent. Credit card fees are a “nightmare”.

Even though many of his restaurants have lineups out the door, two of them didn’t turn a profit after the province implemented an employee health tax in lieu of medical services premiums, resulting in a $500,000 bill.

Other chefs also blamed recent government decisions for adding to their woes: steady increases in the minimum wage, changes to policies that mean employers can’t ask for a sick note from a doctor even when a worker has missed five consecutive days of work two separate times, and WorkSafeBC’s new gratuity policy that adds tips to payroll for premium calculations.

“It’s like drip, drip, drip,” said Yacoub. “I’ll be lucky if I make a four per cent profit across the company. And what happens to those (restaurants) that are not busy? They are really struggling.”

He speculated that could mean maxed-out credit cards, negotiations with suppliers to extend payment two or three months out, the end of restaurant hosts, reducing shifts from eight hours to seven, five days to four, shrinking menus, and earlier closures.

“It’s my business. I love it so much, I don’t know what else I’d do if I didn’t do this,” he said. “But I wouldn’t wish it on anyone.”

Business licence data kept by municipalities provides a glimpse of the challenges, although it doesn’t break down restaurants by type. The number of active restaurants in Surrey has fallen to 1,064 over the last two years, with about 77 fewer restaurants holding a business licence in 2025 compared to 2023. In Vancouver, the number of restaurants holding a business licence dropped by about 20 between 2023 and 2024 before rebounding to 1,825 again in 2025. The number of small food retailers where seating is limited to 16 seats or less remained stable.

In a statement, the City of Vancouver said it is committed to “making it easier to do business and fostering a vibrant hospitality and cultural sector.” It went on to add that staff are working “closely with industry partners to identify challenges, simplify processes, and find solutions that support businesses and venues.”

Ian Tostenson, president of the B.C. Restaurant and Foodservices Association, said government red tape is one of several issues hitting the industry at the same time.

An association survey released in November found that 46 per cent of B.C. restaurant operators identified their business as “struggling,” with another eight per cent at risk of closure. Rising costs, including the price of food, topped the list of challenges, followed by customer traffic and labour shortages.

“I think the biggest issue is the cost uncertainty we’ve seen since the pandemic, and the uncertainty we’re seeing in the economy,” he said.

The two are linked. Restaurants can’t simply raise their prices in response to rising food and labour costs, because they will price themselves out of business.

“Will customers pay $30 for a hamburger?” he asked.

From 50 seats to 16

The idea was a 50-seat restaurant. The reality is 16. But James Frost and Heather Dosman, co-owners of Victoria’s Lumache, are forging ahead.

The restaurateurs said sustainability is important to them — and not just in terms of the food they serve. Being small allowed them to open when other B.C. restaurants are closing.

That is not something they want to boast about, said Frost. Their situation — opening in December rather than pre-pandemic or before inflation went wild — allowed them to tailor their establishment to the realities facing the industry.

There are positives and negatives to being a small restaurant, said Frost. On one hand, they can scale down rent, food and labour costs, particularly as many of their dishes are made to order. In addition to Frost, who is the chef, Lumache employs one sous chef. Dosman runs front of house with help from two part-time servers. They also employ a dishwasher.

So far, the restaurant has been full, with bookings well into January. But Dosman admits the margins are tight.

As a small restaurant, last-minute cancellations are devastating, she said. A one-table no-show can cost them up to 25 per cent of a night’s profit.

“The cost of things is higher than it’s ever been,” said Frost. “There is no longer any cheap food out there. Five or six years ago, when you were costing a menu, you could make the margins better. With pasta, you might use a few premium ingredients and then some potatoes and onions to round out a dish. But potatoes and onions are no longer cheap.”

It’s even harder when you are selling steak, which cannot be adjusted like a pasta filling. In September 2020, the average price of beef ribs in Canada was $19.31 a kilogram, according to Statistics Canada. In September 2025, it was $42.52.

But Frost said there are some surprising bright spots in the story of rising food costs. He has noticed that while inflation has caused the price of ingredients from California to skyrocket, local produce has been more consistent. Prices have gone up, but not as much, making the cost of local zucchini, for example, on par with imported vegetables.

“That gap is closing,” he said.

Belcham, with the Chef’s Table Society, also sees reasons for optimism.

B.C.’s restaurant industry is “unbelievably resilient and agile,” he said.

Value will be important this year, pushing chefs to build better relationships with their customers and suppliers.

“There’s got to be give and take from both sides,” he said. “Everyone has to understand, we’re not gouging our customers. We do it because we love it. Because we want to bring joy to people.”

gluymes@postmedia.com

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