Local Franchise Owners Caught in U.S.-Canada Trade War Crossfire

By ELLIOT MOFFAT-SHOJANIA

Two Vancouver business association leaders say they’re worried that local franchisees of U.S.-based companies may get caught in the crossfire amidst the growing trade war, U.S. tariffs and a push to buy Canadian. 

Kerrisdale Business Association executive director Terri Clark said consumers seem more interested recently in supporting local businesses. However, she said, people should “think twice” about boycotting businesses like McDonalds or Home Depot, where the local franchises are owned by Canadians. 

“These are franchises that are owned locally. So they employ local people and the money stays in Canada most likely,” Clark said. 

Catching Strays

Neil Wyles, the executive director of the Mount Pleasant Business Improvement Association, said Vancouverites should be careful not to inadvertently “punish” franchisees and that “they are our local businesses as well”. 

Wyles said he understands the sentiment and importance of buying from Canadian companies, and is glad to see the city doing that most of the time. He said municipal​ officials have told the Business Improvement Associations that 95 per cent of the city’s purchases are locally made. 

“At the end of the day, their money is actually our money, so we want our money being used for good and not for evil,” Wyles said.  

 A Business Improvement Association (BIA) is a group whose job is to promote businesses in a specific area. Business owners pay a fee that will be added on to their property taxes to the city, and then the city gives it to the BIA. The BIAs provide services like night-time security, street beautification, events and event promotion for businesses.  

Fry Frustrated

Vancouver City Councillor Pete Fry said council is looking to support Vancouver businesses facing potential impacts of tariffs from the U.S., despite having limited tools compared to other levels of government. One such tool is a temporary fee reduction for patio permits, as businesses pay fees to the city to operate patios on sidewalks, city property, or private property.  

Fry said that providing “a little bit of relief” through the temporary fee reduction is one way to offset the volatility faced by restaurants that struggle with their profit margins and are anticipating supply chain disruptions. 

Fry said the challenge is to scale the response more urgently. 

“I’m a little frustrated that we’re not moving a little faster on activating,” Fry said. 

On the topic of the broader response, Fry said it’s about being prepared and enabling the city to have the necessary nimble response as things change. 

Patio Relief

Restaurant owner Kelly Gordon said the restaurant business is tough these days, but a patio brings in business. 

“Any relief we can get on any fees, be it patio or any other things we get charged, is obviously going to help us,” Gordon said. 

Ian Tostenson, president of the British Columbia Restaurant and Foodservices Association, is involved in discussions around reducing patio permit fees. 

“When it comes to things like regulation and policies … we’re at the forefront of that working with the government to make sure that those are fair and sensible,” Tostenson said.