McGee’s Original Grill among those feeling the pinch, fearing the worst
Local businesses are facing bankruptcy as inflation continues to halt the population’s spending.
As of September 2023, Canada’s Consumer Price Index (CPI) rose 0.1 per cent monthly and 3.8 per cent year over year. On average, Canadians are spending 10 per cent more on essentials than they were a year ago, and according to the Royal Bank of Canada (RBC), retail spending and restaurant dining has been declining steadily throughout the year.
McGee’s Original Grill has felt the effects of these changes firsthand. Owner Robynn Linde has had to lay off almost all her staff and reduce her business hours to Wednesday to Saturday 11 a.m. to 7 p.m.
“These were key people in my business, and it broke my heart to do this,” she said. “They’re part of my family and you know they’re hurting too.”
Right now, McGee’s only has one cook and one server —which is all the business can afford. This comes after Linde bought the Retro’s Drive In building to turn it into the new McGee’s spot, renovated it, expanded it and added items to the menu.
Things were going well when she opened, but the summer of 2022 is when Linde started to see customers coming in less.
“We continued on and did our best to cut costs where we could and move forward,” she said.
Last winter, McGee’s suffered two break-ins and had a water pipe burst, costing several thousands of dollars. Going into the summer of 2023, things weren’t looking good for McGee’s, so Linde worked to get the establishment licensed so she could offer her customers liquor with their meals. She tried adding new promotions, specials and discounts, but nothing seemed to bring in enough people to cover costs. Then, McGee’s suffered two more break-ins, leaving Linde feeling “utterly defeated,” she said.
On top of all this, minimum wage increased by 28 per cent in just two years, along with the rise of the cost of living. Fuel costs spiked, grocery costs rose and with restaurant margins spread thin as it is, they quickly disappeared for Linde.
“So many businesses closed their doors during COVID and the ones that made it through all these tough years still have a really tough road ahead,” she said. “Costs are at an all-time high and the public’s lifestyles and spending are not back to pre-COVID.”
Now, bankruptcy is looming over McGee’s.
The Carman and Community Chamber of Commerce has recognized the decline in business over the last two years. Treasurer and owner of Peace Lily Therapeutics Mayghan McEachern said all types of small businesses are feeling the heat right now, largely due to people having to spend more to buy less.
“It’s a giant cycle,” she said. “If I’m not making money, it affects my household and how I will pay my bills and eat. I don’t have extra to spend at other places on myself or others, so that is happening to the other store owner that I’m not shopping at.”
The Chamber has already seen businesses start to close their doors and says more will follow or move their business out of the area to a bigger centre. McEachern said she’s not expecting everyone to spend all their money at local businesses — she understands how far one dollar goes — but spending just a little in the community goes a long way.
“You see posts on social media about supporting local and how important it is for your community,” said Linde. “People share them but I’m not sure everyone understands how important it really is.”
She added that just choosing to do a fundraiser with a local business instead of a larger company makes a big difference.
“It’s easy to get in the mindset that things are cheaper elsewhere,” she said. “But if we don’t use it, we’ll lose it.”
The Carman and Community Chamber of Commerce has established a Chamber Business Support Fund with the sole purpose of providing assistance to their members facing economic difficulties. The application process is straightforward, making it as easy as possible for local businesses to receive assistance when needed.
To apply, businesses need to be a Chamber member, willing to participate in a customized planning process to re-establish profitably, and can only apply every two years. Successful applicants will receive free advice from local professionals to implement a business plan to return to profitability and funding to support cash flow on a short-term basis.
The application form can be found on the Chamber’s website at carmanchamber.ca in the “About Us” section.
