'The pie is getting smaller': Ontario Restaurant Hotel and Motel Association

Dozens of hoteliers, restaurateurs, and local suppliers gathered in downtown Windsor, Ont., on Monday, June 10, 2024. (Stefanie Masotti/CTV News Windsor)

Dozens of hoteliers, restaurateurs, and local suppliers gathered in downtown Windsor Monday for the general meeting of the Ontario Restaurant Hotels and Motels Association Windsor-Essex.

“The hotel sector is doing phenomenally,” says Dharmesh Patel, general manager of the Quality Inn in Leamington and ORHMA Windsor Region chair. “The hotel industry has exceeded our expectation as far as revival.”

As for restaurants, Patel tells CTV News, that sector of hospitality continues to struggle due the high cost of food, insurance and rent.

“When people think about rent they usually only think about housing. They aren’t looking at the fact that commercially a lot of these places are rental properties as well.” Patel points to landlords for ‘jacking’ up monthly rent. “When the rent goes up, we need to cover that rent income, and if we are not getting customers, then everyone is taking a bigger piece of the pie so that pie is getting smaller for every restaurant.”

Patel also says customers habits’ have changed since the pandemic. Eating at home is a growing trend.

“The younger generation like Uber Eats and Door Dash,” he adds. “Dine-in is becoming more of a specialty.”

He notes even staple chains, like Pizza Hut, have changed from the dine-in concept to storefront pick up.

Restaurant are also facing a shortage of staff. Patel says pilot programs will soon launch across Windsor-Essex targeting more domestic kids to enter the hospitality program by reaching out to school aged kids as young as grade 6, 7 and 8.