Patios remain key for restaurant sales, but owners say it’s no longer a ‘free lunch’


People dine on the patio of a pub in the ByWard Market in Ottawa, on Friday, June 23, 2023. THE CANADIAN PRESS/Justin Tang – The Canadian Press

If it weren’t for patios, Matthew Senecal-Junkeer says he wouldn’t be in business today.

He owns two restaurants in Vancouver through his company, the Birds & The Beets Food Group.

The Chinatown location had a small patio that was extended through the city’s street-side patio program in 2020. The program also allowed him to build a new patio at his Gastown location after years of trying, since city regulations before the pandemic had prevented it.

The new patio was a “game changer,” Senecal-Junkeer said. “It really was what allowed us to stay afloat.”

Patios are still a critical driver for restaurant revenue, six years after the COVID-19 pandemic drove demand for outdoor dining. However, restaurant operators say they are not as lucrative as they once were, as the extra seats are now being factored into higher rental costs.

Senecal-Junkeer said that the extra patio space means his business is roughly 40 per cent busier in the summer. He estimates that the increased traffic has translated to a 20 to 30 per cent sales bump.

“We almost don’t see the interior in the summer; everybody wants to be out on the patio,” he said.

Patio dining became newly popular during the pandemic as it allowed people to eat outdoors while being mindful of social distancing practices at a time when gathering inside was risky.

Restaurants can choose to set up patio spaces differently, with some looking to create a busy and fun atmosphere, while others opt for calmer and quieter spaces for their patrons. Some restaurants have been running their patios for years, while others more recently moved to capitalize on demand for outdoor dining.

Even when the weather doesn’t co-operate, Senecal-Junkeer said consumers come back with fiercer demand when the sun is back out.

When patios became more popular during the pandemic, he said it was essentially a “free lunch” for anyone who already had one in their existing lease structure. At least, for the first few years.

“Now, when landlords are leasing a space, they’re able to factor in what that patio opportunity is and price the rent of the space accordingly,” Senecal-Junkeer said.

When it was time to renew the lease on one of his restaurants in 2023, he said the patio was factored into the rental cost and drove up the price per square foot.

There are also other costs associated with running a patio. When extra space for outdoor dining means removing street parking spaces owned by the municipality, Senecal-Junkeer said restaurants often have to offset the lost revenue for the city.



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