Hoping for a post-pandemic recovery one pizza, coffee and ice cream at a time

It's been almost exactly 14 years since the two men behind a successful, local coffee business openedtheir first location in the old Calgary Farmers' Market.

And despite all of the challenges brought on by the year-long global pandemic, ever-changing health and safety restrictions and the city's uncertain economic future, Phil Robertson and Sebastian Sztabzybinsisted on following through on plans to expand their business.

And they aren't alone two other local restaurants are joiningthem with a pandemic opening.

It's a decision that defies the state of an industry that hasseen 10,000 restaurants close across the country over the past year, shedding more than300,000 jobs, according to industry group Restaurants Canada.

The two men behind Phil &Sebastian Coffee Roastershave joined forces with two other Calgary entrepreneurs to open side-by-side-by-side on the western edge of Murdoch Park in the inner-city community of Bridgeland.

Phil &Sebastianis sandwichedbetween Village Ice Cream and Una Pizzain a new building on 7A StreetN.E., not far from from their flagship location across the river in East Village.

It's a risky move for the now 43-year-old entrepreneurs and self-described coffee nerds. It's their seventh location, but only six areopen (a downtown location on Stephen Avenueis temporarily closed).

"Obviously, when the pandemic hit we hadto re-evaluate every decision we've ever made. This was one of them," said Sztabzyb standing in the new caf, which covers about 1,500 square feet, or 140 square metres.

The two spent nearly$500,000 on the new caf and that's after the budget was tightened and some features were dropped to save money.

They've hired four full-time and two part-time employees to start,but the hope is to bring in more as restrictions for restaurants ease.

Streamlining, finding efficiencies, doing more with less is all part of the new business plan, which still reflects a survival mode strategy, saysSztabzyb.

Their menu has been has been pared down, operations have been tightened up and they'veshed about 30 employees.

While a grand opening is usually cause forexcitement,there is so much uncertainty.

"How long is the pandemic going to last? Howlong are we going to be suppressed by 30, 40, 50, 70 per cent ofour revenue?" askedSztabzyb.

Phil &Sebastian which early on in thepandemic saw sales plunge between 80 and 90 per cent at some locations were able to stay afloat in part because of government subsidies that helped them pay their employees and their rent.

Sztabzyb says it's beenstressful.

"It was really a true questioning of like, what's going on? Are we even going to be here in three months?"

'Trifecta' of local brands

Next door to the coffee shop is Una Pizza, which says it has hired 35 people. On the other side is Village Ice Cream, which is alsorolling the dice with a grand opening during a pandemic.

"It's difficult to spend money right now. And it's hard to know how things are going to turn out," said Billy Friley,the company's founder.

He's got three store openings under his belt,but none like this.

Friley says the pandemic affected the timeline for ordering supplies and equipment and there were issues related to inventory and shipping. Goods that usually take six to eight weeks to arrive took twice as long. The store's opening was delayed by a month.

His shop is smaller than the cafnext door, but the cost of opening wassignificant: more than $500,000 to get everything in place and up and running.

The three businesses started the plan for this venture a year before the pandemic hit and sayit might have been just as risky to pull out.

As perilous as opening an ice cream shop in the winter in Calgary can be, Friley says he had to consider all of the commitmentshe made to his landlord and suppliers not to mention his new next door business besties.

"Once the wheels are in motion, it's very hard to kind of have an alternate plan, without putting a huge amount of pressure and ultimately risk on the business model," he said.

"As long as we could keep the rest of the business rolling down the road, and meet or come close to meeting our targets, then we were able to continue on with this project."

1 in 5 businesses at risk of closing

Operating a business in Alberta in the past year has been fraught with risk and unpredictability.

Last year, 226 businesses and 128 corporations either went bankrupt or filed proposalswith their creditors to try to settle their debts. It's unclear how many of those are in the food servicesector.

That's on top of the nearly 17,000 consumers who either went bankrupt or filed their own proposals, according to StatsCan.

Calgary caf owner optimistic for post pandemic bounce back

4 years ago

Duration 0:57

Sebastian Sztabzyb and Phil Robertson own Phil & Sebastian Coffee Roasters in Calgary. They've joined two other local business owners to open new locations during the COVID-19 pandemic.

The Canadian Federation of Independent Business (CFIB) says it's encouraging to see new, local businesses take a risk, but it agrees with Friley that it can be very difficult to back out becauseof the contractual obligations to lenders and suppliers.

"It is definitely encouraging and really a testament to the entrepreneurial spirit of the province," said Annie Dormuth, who is the Alberta director for the CFIB.

"However, you have to keep in mind a lot of these businesses are opening because they had to," she said.

While optimism appears to be gaining steam with the easing of restrictions and the increasing number of Albertans who are getting immunized against COVID, there is lingering pessimism.

Dormuth says her group surveyed small business owners in Alberta who say one in five are at risk of closing. She says that equals 34,500 businesses which employ 600,000 people

"We are definitely not out of the woods in this pandemic."

Perhaps that is why Restaurants Canada is asking the federal government to extend rent and wage subsidies to April2022.

Rebirth of a community

The community is welcoming the three new businesses with open arms.

"You can't go wrong with coffee, ice cream and pizza, that's for sure,"saidAli McMillan ofthe Bridgeland Riverside Community Association.

McMillan doesn't have a precise tally on how many businesses in her community have been forced to close since the pandemic was declared a year ago,but she says many "mom and pop"type stores are struggling.

"People are hanging on by a thread."

"This has been extremely difficult. We have a lot of restaurants that have been open and then closed and open and then closed," she said.

McMIllansays people are supporting local businesses and restaurants during the pandemic and what's exciting for her community is the continued building of multi-family, mid-rise condo and apartment blocks.

"So hopefullywe're seeing,you know, a rebirth of Bridgeland."

"I'man optimist"

It's a new beginning for these local businesses, which are quickly learning how to adjust during a pandemic and how to survive after the crisis.

Sztabzybishopeful people will return to their old habits and routines, which include stopping in for coffee.

He saysthe crisis has also taught themto appreciate their customers even more.

He sayshe now "lights up" when a customer walks in.

"In a normal era,where you're just like, 'Oh, it's just another body coming through.' Now,it's like, no, it's a person and we're grateful to see them."

The three businesses signed 10-year lease agreements with the building's owner, RNDSQR, a local development company.

It's a long-term commitment that is likely welcome news for thenearly 70 people who have been hiredso far with possibly more hires post-pandemic.

"I'man optimist," said Sztabzyb.

"I think that we will bounce from this. It will take some time, and Calgary, in particular, has some challenges. ButI do think that Calgarians are resilient, and we'll get through this."

Bryan Labby is an enterprise reporter with CBC Calgary. If you have a good story idea or tip, you can reach him at bryan.labby@cbc.ca or on Twitter at @CBCBryan.