The Sportscene Group, which owns the La Cage Brasserie sportive restaurants, definitely thanks 30% of its 2,200 employees.
• Read also: The owner of La Cage lays off 30% of his staff
Some workers temporarily laid off at the start of the pandemic will therefore never return to work. Even if restaurants have been able to gradually reopen in Quebec since June 15, this relaunch was made after a period of three months of inactivity which hurt the business.
The Company has therefore decided to close its restaurants in Old Montreal, Mont-Tremblant, Saint-Constant and Trois-Rivières.
“On March 12, we were heading for a record year. Our biggest problem at that time was the labor shortage. Then COVID-19 arrived, followed by a mandatory three-month closure and a reopening with measures and reduced reception capacity. We did not have the choice to make this decision to preserve other jobs, especially since we expect a gradual recovery over a long period of time; we had to ensure the sustainability of the company, ”explained the President and CEO of the Sportscène Group, Jean Bédard.
Effet domino
According to economists, the closures of this important Quebec flagship will have a domino effect and cause collateral damage. Suppliers of food and other products lose a big customer. This is the case with the Buanderie Beaudoin in Victoriaville, a family business for 30 years, which rented equipment, such as uniforms, at La Cage – Brasserie sportive in Trois-Rivières.
“A small economic shock can turn into a recession throughout the economy. This crisis is a liquidity crisis. It is not a crisis of stimulating demand as we have in a normal recession since, during containment, while waiting for people to come back, we have to support spending. Including rents, jobs, etc. It takes cash! So those who are strong in liquidity will survive and those who have very low liquidity will have difficulty, ”explained Frédéric Laurin, professor of economics at the University of Quebec at Trois-Rivières.
The pandemic has a broad back?
It’s a shock wave for the employees. Many believe that the pandemic has a wide back and that the decision would instead be taken because of a restructuring.
“I do not understand! The customers were there and we supplied at full speed, ”underlined the former employee Frédéryk Harnois.
“The employer asked the waitresses to cut their wages to give it back to other employees! After discussions, the Trois-Rivières team accepted, but five days later, we learned of the restaurant’s closure! I think that the pandemic has a broad back and that it is because of the restructuring of the employer ”, denounced another ex-employee, Caroline Valois.
The chain now has 37 restaurants. Jean Bédard admitted that the Group is not immune to further cuts in the coming months.
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