Construction delays mean the English Bay Cactus Club will not open until at least September and, more likely, October, owner Richard Jaffray told Business in Vancouver May 13.
“We were hoping to get it open for the summertime, for sure, but it wasn’t possible, given the extent of construction and some of the issues we had to deal with to get the site ready,” Jaffray said.
The setback isn’t slowing down Jaffray’s plans to expand his 20-restaurant chain, which has locations across B.C. and Alberta.
Two other new locations are currently under construction in Metro Vancouver. Jaffray expects to open restaurants in Abbotsford in August and at the Vancouver Convention Centre in early 2012.
The cost of all this construction is enough for Jaffray to realize that the harmonized sales Tax (HST) has benefits for restaurateurs.
Business owners previously had to pay the 7% provincial sales tax on all renovations and capital expenses. Now that the HST is in effect, he is entitled to a refund for the 7% provincial portion of the 12% HST.
“I’ve never been opposed to the HST,” he said. “Of course I don’t want a tax on restaurant meals at this time, but I understand why the decision was made.”
Stiffened penalties for getting caught driving with a blood alcohol level above 0.05% has “definitely had an impact on the business,” Jaffray said.
His bottom line took another hit when the Christy Clark government raised B.C.’s minimum wage by $0.75 to $8.75 on May 1. B.C.’s minimum wage will still be the lowest in the country until it is raised again, to $10.25 in May 2012.
“There’s been a few challenges for the industry,” Jaffray said. “But, relatively speaking, we’ve done reasonably well.”
Glen Korstrom
Twitter: @Glenkorstrom