Province announces $5-M program to help restaurants with code-red delivery costs

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This article was published 22/12/2020 (2120 days ago), so information in it may no longer be current.

The Progressive Conservative government is providing $5 million to restaurants that have been hard hit by recent code-red restrictions.

The money will be given to dine-in establishments that have had to transform their businesses to a meal-delivery service model due to public health orders.

The funds will cover the delivery costs they’ve incurred since they were forced to shut down their eat-in business in November.

Premier Brian Pallister said Tuesday the restaurant industry has made significant sacrifices to help halt the spread of COVID-19.

“This will help bridge our businesses through this challenging time,” he said of the initiative.

The Dine-in Restaurant Relief Program will be delivered by the Manitoba Chambers of Commerce in partnership with the Manitoba Restaurant and Foodservices Association.

Chuck Davidson, president and CEO of the chambers of commerce, said business had recommended the measure to government as a way of aiding the struggling restaurant industry.

“We’re pleased that the province agreed with that and we look forward to being able to roll out the details… as soon as possible,” he said.

Restaurants will qualify for rebates on their expenses whether they’ve established their own delivery service or use a third party.

The expectation is that the program will be in place until the code-red restrictions are lifted. The restrictions are currently scheduled to be in place until Jan. 8.

Davidson said an online application form should be available through his organization and the MFRA in about a week. The latter group has about 2,000 members, although not all will qualify for the program. Established meal delivery services will not be eligible for the subsidy.

Once the program is running, restaurants will likely submit invoices for their delivery costs one month at a time, beginning for expenses incurred in November. Payouts would begin in January.

“My goal with this program is, I want to give away the entire $5 million to restaurants that are challenged as a result of code red.” – Chuck Davidson

“My goal with this program is, I want to give away the entire $5 million to restaurants that are challenged as a result of code red,” Davidson said.

Shaun Jefferey, executive director of MFRA, said the program will help lift the spirits of restaurateurs during the holiday season.

“In a time when the restaurant industry in Manitoba has experienced significant revenue losses due to the pandemic and code red restrictions, we are pleased to see our provincial government creating this initiative to ensure some of the additional expenses of operating during this unprecedented time are recognized,” he said in a statement accompanying the announcement.

— with files by Carol Sanders

larry.kusch@freepress.mb.ca