Ontario Restaurant Hotel & Motel Association

Ontario Restaurant Hotel & Motel Association

July 22, 2005 12:57 ET

ORHMA urges the LCBO and OPSEU to reach agreement

Attention: Business/Financial Editor, Food/Beverage Editor, News Editor, Travel/Tourism Editor, Government/Political Affairs Editor TORONTO, ON --(CCNMatthews - July 22, 2005) - The Ontario Restaurant Hotel & Motel Association (ORHMA), representing Ontario's hospitality industry, is urging the Liquor Control Board of Ontario (LCBO) and the Ontario Public Service Employees Union (OPSEU) representing employees of the LCBO to avoid a costly strike. OPSEU is in a legal position to strike on Friday, July 28, 2005. The LCBO and union have agreed to three more days of negotiation next week before Friday's strike deadline.

Ontario's hospitality industry, the largest collective LCBO client, could see some small degree of recovery this year - pegged at a modest 1.3% - but is still reeling from a series of setbacks every year since 2001. With declining revenues and escalating operating expenditures, the average profit margin for industry operators has slipped to under 5% with pubs, bars and taverns having sunk even lower.

A strike could be very costly to the economic viability of the province's restaurant, pub, bar, tavern and hotel operators who purchase over $1 million a day in beer, wine and spirits from the LCBO and account for almost 12% of LCBO sales. As well, much of the patron consumption and, hence, operator purchases in the province's 17,000+ licensed establishments peak over the summer months.

"We are urging both parties to come to an agreement and avoid a costly strike", said Terry Mundell, President and CEO of the ORHMA. "It could be a long, hot and dry summer otherwise."

Ontario's licensed restaurants, pubs, bars, taverns and hotels buy $1.23 billion per year of beer, wine and spirits from the LCBO and The Beer Store for resale to patrons. Wine, spirits and specialty beers from the LCBO constitute almost 32% of total licensee purchases.

The ORHMA is Canada's largest, provincial, not-for-profit association that represents the interests of Ontario's foodservice and accommodation industry. IN: ECONOMY, FINANCE, FOOD, LABOUR, POLITICS

Contact Information

  • Terry Mundell, President & CEO, Ontario Restaurant Hotel & Motel Association
    Primary Phone: 905-361-0268
    Toll-Free: 800-668-8906