By Sabby Gill
Amid today’s economic challenges, restaurant owners are facing intense pressure. More than half of Canadian business leaders say they’re experiencing the most unpredictable business environment in the past decade, according to recent studies. Those in the hospitality and retail sectors are feeling the impact even more acutely, with 60 per cent revealing they this is the most uncertain period they’ve seen in the past ten years.
In a climate defined by rising costs, unstable cash flow, and economic uncertainty, it’s no surprise that financial worries have become a primary source of stress for many restaurant owners.
Scenario planning and proactivity
2025 has been marked by significant instability; ongoing geopolitical events are fueling widespread apprehension, weakening consumer confidence, and creating a ripple effect of stress for restaurant owners.
Leaders in the hospitality and retail sectors are feeling increasingly vulnerable as trade wars continue to cast a long shadow. In an industry highly exposed to rising import costs for goods and ingredients, 36 per cent report feeling unprepared for what lies ahead.
In the face of such uncertainty, proactive scenario planning is vital. By mapping out different potential challenges, such as shifts in consumer behaviour and rising costs of goods, restaurateurs can be prepared and ready to adapt as needed.
Confidence in their decisions — whether it’s switching suppliers or reducing expenses — can help ease the pressure and anxiety of navigating an unpredictable environment.
Yannick Bigourdan, a leading Canadian restauranteur and owner of several Toronto hotspots – including Michelin-recommended French restaurant, Lucie, The Carbon Bar, Amano Trattoria, The Berczy Tavern, understands the importance of preparedness during turbulent times. “With such an unpredictable economy, it’s difficult to forecast two things that keep our business running smoothly: the cost of ingredients and whether people will spend their hard-earned money on a night out enjoying their favourite restaurant. When every dollar matters for our customers, it creates a lot of unpredictability for the restaurant industry,” says Bigourdan.
Bigourdan speaks from experience, having been through SARS, the 2008 economy, COVID-19, and today’s tariffs, and while he can’t influence the economy, he can do his best to prepare for it. “You can never get too comfortable as a business owner and must always be ready to pivot quickly,” he confirms.
Resilience through financial clarity
Financial visibility into hospitality operations is crucial for an effective response. By ensuring visibility of cash flow, restaurant owners can sleep better at night knowing they have the financial means to cover overhead and navigate the unexpected.
While financial tools can’t solve every challenge restaurant owners face, improving visibility and planning ahead can help to ease one major source of pressure: money worries. At a time when so many restaurateurs feel the weight of uncertainty, shifting focus to smarter financial strategies and better decision-making support is essential. It’s not just about survival, it’s about regaining control, feeling confident, and looking beyond short-term firefighting.
Enhancing access to funding
Clearer financial visibility isn’t just about decision-making; it’s essential to external perspectives, which are of the utmost importance when considering external funding.
Amid ongoing economic uncertainty, traditional lenders are tightening their belts. According to recent studies, only 15 per cent of hospitality and retail leaders feel very confident and well-prepared that they will be able to secure bridge funding during cash flow gaps. A further 20 per cent describe themselves as confident but not well prepared.
To stand the best chance of securing finance, business owners must demonstrate stability, transparency, and potential, and all of this starts with having their financial house in order.
By adopting AI tools that automate manual bookkeeping, restaurant owners gain real-time visibility into their cash flow, expenses and income. This instant clarity gives them a deeper understanding of their financial health, which is essential for lenders. Accurate, up-to-the-minute financial data builds owners’ confidence and strengthens a case when applying for loans and investments.
With restaurant owners already losing sleep over financial uncertainty, knowing they’re in a strong position to access funding if needed can make a huge difference, both to the future of their business and to their peace of mind
Tech is an essential part of the toolkit
Let’s face it, very few restaurant owners get into business because they like doing their finances. This is especially true in more challenging conditions, where they’re consumed by rising costs, cash flow pressures, and the constant need to make well-informed decisions. Manually doing the books on top of all this is a recipe for burnout, increased inefficiency and a rise in human error.
Fortunately, numerous AI-first tools are available to help alleviate this burden, and they need to be a part of every owner’s toolkit to streamline financial processes. At the same time, these tools can save time and money, cutting out admin and costly mistakes while providing a more holistic picture of their restaurant’s financial health.
Ultimately, restaurant owners should remember that in today’s fast-moving landscape, digitizing isn’t just about efficiency or fuelling growth; it’s about survival in an increasingly competitive market while reducing the operational burden that often leads to financial stress.
With AI now embedded in modern accounting tools, those not yet exploring automation risk falling behind peers who are freeing up time and making more informed decisions.
By prioritizing smarter financial strategies and embracing technological solutions, restaurant owners and hospitality professionals will be better prepared to weather the storm with greater confidence, while alleviating financial stress and positioning themselves for growth beyond just staying afloat.
Sabby Gill is CEO of bookkeeping automation platform, Dext, joining the business in October 2022. Prior to joining Dext, Sabby was CEO of Thomas International, a leading talent assessment and psychometric provider, as well as leading Sage in its home market of the UK and in Ireland. Sabby has over 35 years’ experience in the technology sector, spanning sales, operations, development, support and customer service. He has spent his career supporting businesses of all sizes, across the globe, with the technology to unlock their potential.
