Lawrence Avenue, Wexford Heights - Toronto, ON

Nov 12

BLOCK REPORT ROUND #2: NOVEMBER 2020

This report was prepared during the months of October and November 2020 based on conversations with the Wexford Heights Business Improvement Area (BIA) and local business owners, a business survey and a variety of other data sources. It provides an update to the Round #1 Block Report produced in July 2020.

Summary

Lawrence Ave East is located in the Wexford Heights neighbourhood of Toronto. It is a busy arterial road made up of a number of strip malls.
Of the 87 businesses on this block, most are independently run (81%). This includes many businesses that are family-run and culturally specific (e.g. Bengali, Gujarati, Iranian, Nigerian, Somali, Filipino).
Compared to the other blocks, Wexford saw one of the lowest decreases in number of visits (31% fewer visits from April to September compared to last year).
Despite the decreased visits, over the summer the area felt fairly busy with customers who came to patronize the specialty shops.
Many of the businesses on this block focused on take-out even before the pandemic, so weren’t as affected by restrictions on dining. However, the high fees associated with delivery applications like Uber Eats and Skip the Dishes are problematic for the small businesses.

Business Survey Highlights

We conducted a survey of local businesses on this block to better understand the impacts of COVID on businesses and the street. Here is what we learned:

88% of businesses reported having decreased revenues
75% of businesses said supply chain issues have affected their business to some degree
25% of businesses said that the expect to have to permanently scale down operations in 3-4 months if there are increased restrictions as a result of a second wave. 38% said they expect to have scaled down operations with a plan to get back to normal
88% of businesses said they would like to see governments offer financial assistance and waive fees (e.g. utility costs, permits) to mitigate the costs of COVID
88% of businesses said they would like to see governments and others encourage shopping at local/independently owned Canadian businesses

Lawrence Avenue East During COVID-19

Key Impacts:

Three businesses on this block have closed since the pandemic began, including a café, a restaurant and a travel and tourism company.
There have been approximately 420,000 fewer visits to this block from April to September 2020 (a 31% decrease) compared to the same time period last year.
Market rents and sales prices have stayed pretty much consistent through the pandemic (1% increase).
Businesses have been “hanging on”, but most are seeing decreased revenues compared to last year; 88% of the businesses surveyed said they were experiencing decreased revenues.
Only one business took advantage of the Digital Main Street program to get their business set-up online. Language barriers, the number of older business owners and assumptions about the financial and time costs of being online likely contributed to low take-up. None of the businesses surveyed said they have been positively affected by selling more online.
Many of the food businesses on this block focused on take-out even before the pandemic, so weren’t as affected by restrictions on dining. However, the high fees associated with Uber Eats and Skip the Dishes have been problematic as they eat into their profit.

Bright Spots:

Four new businesses have opened on this block since the pandemic started, including 3 cafes/restaurants and a cannabis shop. Several other businesses have opened in the surrounding neighbourhood.
Despite the decreased number of visits, over the summer the area seemed to be fairly busy with people who patronized the specialty shops. Compared to the other blocks, Wexford saw one of the lowest decreases in number of visits.
Even though Wexford is made-up of mostly strip mall plazas, 3 businesses: Habibiz (a hookah bar), Diana’s Seafood and a new Mediterranean seafood restaurant set-up outdoor patios in the parking lots.

What’s Next:

While most businesses have survived the initial lockdown phase, many are still at risk of closure; 38% of businesses say that in 3-4 months if there are increased restrictions they expect to be closed down or have permanently scaled down operations.
The BIA is working on encouraging businesses to participate in the Digital Main Street program.

Block Story: Wilson Ho, Diana’s Seafood

Wilson Ho is the Manager of Diana’s Seafood, a fine dining fresh seafood restaurant on Lawrence Avenue East. The business closed down briefly at the very beginning of the pandemic, and then opened for take-out, patio and eventually indoor dining. They also opened an extended patio in the parking lot.

Initially, Diana’s had to lay off most staff. Some staff were eventually brought back but additional layoffs had to be made. They are now operating with around 50% of their previous staff and revenues are down around 75%. Wilson reported that the summer was not as bad as he thought it would be, but business is still struggling.

Wilson reported that the patio space was very popular during the summer. He found that people would rather sit on the patios than resume fine dining indoors. Wilson is skeptical about creating a winter patio. He said that heaters are very difficult to find and that he worries that their menu is not configured for cold weather dining. He suggested that an enclosed space may be a better option in order to prevent the food from getting cold.

In order to adjust to the climate of the pandemic, Diana’s Seafood created a small menu for takeout. However, Wilson laments that the business cannot survive on take out alone. It is not only expensive but also difficult because much of the seafood menu is temperature sensitive. The business has been facing supply chain issues because certain imported wines and fish get stuck in transit and take long to arrive.

Wilson is not sure that the business will be able to survive if the pandemic persists. Consumer confidence is the biggest issue. He feels that government restrictions on restaurants have made people feel unsafe to go into a restaurant. The uncertainty about the future of the business and for staff is one of the biggest challenges.

What Can Governments and Others Do?

Language differences and other challenges facing immigrant-run businesses have acted as barriers to businesses on this block accessing government programs and digital tools, technologies and services such as Digital Main Street. Whenever supports are being provided directly to businesses, additional efforts should be made to ensure supports are inclusive of all businesses and business owners—for example, by providing services in languages other than English.
Consumers, governments and other main street advocates are working to encourage local shopping. Continuing to look for ways to support and incentivize consumers to support small and independent businesses can help main streets like Wexford. This is especially important during the holidays as many businesses rely on this revenue to build their cash reserves; 88% of businesses said they would like to see governments encourage shopping at local/independently owned Canadian businesses.
There is a need to address the high fees associated with delivery platforms like Uber Eats and Skip the Dishes. Some governments are looking at the possibility of mandating lower service fees. Business associations, social enterprises, non-profits and even governments can also support the development of alternative delivery applications/models.

About This Block

Wexford Heights is a diverse neighbourhood in Scarborough, in the eastern part of Toronto. It is centered around Lawrence Avenue East, which is characterized by wide arterial roads and car-centric postwar strip malls.

The strip mall plazas in Wexford have been recognized for their unique heritage value. These strip malls include very few chain stores. Most are independently run (81%). This includes many businesses that are family-run and culturally specific (e.g. Bengali, Gujarati, Iranian, Nigerian, Somali, Filipino). The area’s diverse population is also reflected in the multi-cultural Taste of Lawrence Festival, hosted each year by the Wexford Heights Business Improvement Area.

One of the strip malls on this block is the Wexford Heights Plaza, which has a convenience store, computer repair shop, dental clinic, Middle Eastern bakery, barber shop, nail salon, Subway franchise, new cake and ice cream business and an Indian jewelry and clothing shop. Another strip mall in this block includes a Greek fine food shop, Somali restaurant, 2 side by side Middle Eastern restaurants (with an enclosed patio), Papa John’s franchise, Cannabis shop, an Indian Paan shop and a shawarma shop.

Pre-COVID, despite some long-standing vacancies, most of the businesses on this block were busy serving as destinations for neighbourhood residents as well as those from outside the immediate neighbourhood picking up specialty items from their cultural community.

Provincial COVID Context

With more than 106,000 COVID-19 cases, Ontario has the second highest case count among Canadian provinces after Quebec. On March 17, 2020, the Ontario government implemented emergency orders, which included the closure of non-essential workplaces. From May through August, the province then implemented a three-stage plan to lift restrictions. In June various regions started moving into Stage 2, which allowed businesses that were deemed non-essential to reopen with proper health and safety protocols in place, and then in July various regions moved into Stage 3 which allowed all businesses and public spaces to reopen. In November, the Ontario government introduced a new colour coded system spanning five categories: green (standard measures), yellow (strengthened measures), orange (intermediate measures), red (stringent measures), and grey (lockdown- maximum measures). As of November 23, Toronto entered the grey lockdown category, which limits non-essential retail to curbside pick up only and restaurants to take-out only, while recreational facilities and personal care services are closed.

Canadian Urban Institute