Patios remain key for restaurant sales, but owners say it's no longer a 'free lunch'
Restaurant owners in Vancouver report that while outdoor patios remain essential for revenue, they are no longer the 'free lunch' they were during the pandemic. Rising rental costs and changing lease structures have diminished the profit margins previously gained from expanded outdoor seating.
Why it matters
This reflects broader economic challenges in the hospitality industry as businesses adjust to post-pandemic operational costs.
He owns two restaurants in Vancouver through his company, the Birds & The Beets Food Group.
The Chinatown location had a small patio that was extended through the city’s street-side patio program in 2020. The program also allowed him to build a new patio at his Gastown location after years of trying, since city regulations before the pandemic had prevented it.
The new patio was a “game changer,” Senecal-Junkeer said. “It really was what allowed us to stay afloat.”
Patios are still a critical driver for restaurant revenue, six years after the COVID-19 pandemic drove demand for outdoor dining. However, restaurant operators say they are not as lucrative as they once were, as the extra seats are now being factored into higher rental costs.
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