July 5th, 2024
With over 9,000 LCBO workers going on strike as of July 5th for at least the next 14 days, bars and restaurants across Ontario are facing significant liquor inventory challenges. While local distilleries, wineries and beer stores can provide alternative supply, the LCBO strike can cost Ontario’s restaurants millions of dollars in lost revenue due to inventory shortages.
To evaluate the financial impact of LCBO strike on Ontario’s restaurant industry, we have used internal data from over 3,000 restaurants we have in Canada and combined it with data we released in our report on Canada’s restaurant industry.
The purpose of this data report is to illustrate how much of Ontario restaurants’ monthly alcohol revenue is at risk due to LCBO strike.
There are 11,124 full service restaurants and 1,451 bars in Ontario that are being impacted by the LCBO strike. Since quick service restaurants typically don’t serve alcohol, 12,575 full service restaurants and bars in total will be impacted by the LCBO strike in Ontario starting on July 5th, 2024.
There are 2,813 full service restaurants and bars in Toronto which can lose revenue due to LCBO strike and alcohol inventory shortage. Mississauga is second with 646 and Ottawa is third with 541 full service restaurants and bars in Ontario.
Based on our internal data from full service restaurant clients, on average alcohol is 22% of all full service restaurant sales in Ontario. This figure is also supported by the National Restaurant Association which estimates that 21% of sales in full service restaurants are alcohol.
According to our internal client data, the average monthly revenue for full service restaurants in Ontario is $61,500 per month or $738,000 per year. Which means that average alcohol sales are $13,530 per month for full service restaurants.
With $13,530 average monthly alcohol sales for full service restaurants and 12,575 full services restaurants and bars in Ontario, estimated alcohol sales for Ontario full service restaurants and bars is $170 million per month that is at risk due to LCBO strike.
While distilleries, wineries and grocery stores can provide a reprieve for 12,575 full service restaurants and bars in Ontario, a prolonged LCBO strike still poses a major threat to the monthly revenue of $170 million that Ontario restaurants bring in as a result of alcohol sales.