Canada experienced a technical recession in the first two quarters of 2015. Conservative prognosticators and other shameless hacks are twisting themselves into unprecedented contortions explaining how this recession is not really a recession...even though it is.
One AM radio show where the writer lives (Ottawa) has asked listeners to call in and discuss what they see about them that would constitute proof of a recession. Here is what one can see by driving down Merivale Road in Ottawa, going North to South.
On the left...a closed Coras restaurant, which became a Nates deli, which also just closed.
Across the street, an XS Cargo retail outlet that closed.
On the right again, a former Zellers that went under and became a Target that went under.
On the right, further South, the closed Future Shop...right beside the still open Best Buy.
Across from that on the left, the Merivale Mall that was about 50% closed. Marshall's will open there soon.
If you proceed down the road and turn right on Hunt Club, you will find a Don Cherry's, that was a Twisted Lizard, that was a Kensey's...all in two years.
Go right, and you find...
A new Cora's, Lone Star, and Jack Astors, and at least 20 other lesser "big box" food outlets, all built in the last three years.
The early 1980's recession killed Ponderosa. The early 1990's recession killed Frank Vetere's. This next recession will be preceded by 6 years of almost free money, encouraging massive overbuilding in the restaurant sector. If a restaurant is in a good location, it will be fine. If it is an "impulse buy" type of big box establishment, it will go through some very difficult times. Will one chain close this time, or maybe up to three?
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