The owners of Chartier, which has been one of the area’s most beloved restaurants, say a perfect storm of factors — COVID, rising interest rates and the cost of food — have forced them to make a tough call. Darren and Sylvia Cheverie announced their tentative plans to close the restaurant at the end of September.
But, the fact that I am using the word “tentative” is an indication that there’s a glimmer of hope out there. The Cheveries don’t want Chartier to end. When I spoke to them on Thursday, Darren fought back tears as he spoke about the restaurant. There is still hope that an angel investor can be found — someone who is willing to put some dollars forward and help keep the lights on at Chartier.
Their Mother Bakery venture, which spun off of Chartier, will remain a going concern.
The restaurant opened in Beaumont in the spring of 2016. In 2017, back when this magazine was known as Avenue Edmonton, our judges selected Chartier as the area’s best new restaurant. Chartier has become well-known in the region for country brunches, baked goods and some fantastic dinner offerings.
Despite the plaudits, there have been many economic factors that have eaten away at the business. Sylvia and Darren explain how they got here, in their own words. The interview has been edited for length and clarity.
SYLVIA: It definitely wasn’t a spur-of-the-moment decision. The recovery after COVID measures were lifted was not as nearly as immediate as I think everybody anticipated it would be. Between the government and operators, we all collectively assumed that, when the restrictions were lifted, we would be back to business as normal. And that was definitely not the case. There was a huge lag for all of 2022.
SYLVIA: Compounding all of that was the astronomical increase in core ingredients that we use in the restaurant. We’ve tried to pivot as much as humanly possible. We’ve made a real adaptable and flexible menu that allows us to pivot when things are out of stock or prices have skyrocketed out of nowhere. But, our utility costs have more than doubled. Our interest rates are rising — and those (COVID) loan repayments are starting to come back in. The math just hasn’t been math-ing.
DARREN: It feels like the pivoting that we did, so much through the last two to three years of operation, we just pivoted into the ground. It’s certainly not an individual problem, it’s an industry-wide challenge. I am very, very scared for what’s going to happen with our colleagues and our food system.
SYLVIA: I think that food operators in the Edmonton food scene have got a lot more open and honest about where things are at. Operators are willing to be more open about what they’re struggling with and how they’re trying to overcome those challenges. While I’d never say misery loves company, there was some solace in knowing that this isn’t just a Chartier issue. This is something being felt by everyone in our industry, not just in Edmonton and area but across Canada.
Restaurants Canada reported in May that bankruptcies in the industry were up nearly 128 per cent over May of 2022, and were up 116 per cent on the year as a whole.
DARREN: Some examples of core ingredients where prices are nonsensical: Salt went from $3.70-something a box to $11-something a box. Canola oil has gone from $24, the highest it went was $80, but now it’s leveled out at about $48 for 16 litres. There are just some inexplicable expenses towards your guest.
SYLVIA: When it’s key things like salt and flour and gas and electricity and interest rates, you have to raise the prices. But, in turn, our guests are not getting a higher level of experience in return for that higher price. We do the best we can to communicate the reasons for the changes in prices that have been required. But there’s a threshold we are going to hit, that people can pay. And the reality is that Albertans are in a similar situation to us. This is not just a restaurant problem. Albertans are hurting financially. People can’t afford to go out to eat as often as they used to. And when they do, the stakes are that much higher. They have a higher level of expectation, and I don’t blame them for that. If you’re used to paying $20 for a steak and, all of a sudden, it’s $40, you’d think that this is going to be the most magical steak that I’ve had in my entire life.
SYLVIA: We work with smaller farmers, smaller producers. We’ve said from the start that we don’t want to make money off them, we want to make money with them. They are facing similar issues, as well. Their price of gas has gone up. Their input prices has gone up. They have to raise their prices — it’s completely understandable.
DARREN: There’s economics that surround your value system, too. We had to cut back on the things we really wanted to change in our industry, back when we opened. We wanted to change how hospitality was treated — with sick days and mental-health days. But we’ve had to take away benefits and start to scale back on the things we really felt we were changing for the better. And that feels like, well, not a step in the right direction.
SYLVIA: How do you go back on that? It’s not like the people in hospitality are driving around in Bentleys and living large. People in the hospitality industry are generally undervalued for the kind of input they do. People go to school for two years to get their Red Seal apprenticeship, and they are making close to minimum wage, plus tips. Darren and I believe that they 100 per cent deserve to make more money. There’s not a person in our building who doesn’t deserve to make more money than they are currently getting. But where does that come from, in a five per cent profit margin? How do you increase it to the level that you know is fair and you know is right? How do you give people their benefits so they can go to the dentist once a year, so they can afford their prescriptions, so they’re not coming to work when they’re sick? How far back do you scale those values until you say, ‘this is not who we are?’
SYLVIA: The hardest part is that there is so much uncertainty right now. Sitting in that uncertainty is incredibly uncomfortable. We’ve had a few folks reach out, looking to see if perhaps an investment would help us get to the other side, and what that would look like to keep Chartier open in Beaumont. That would be incredible.
DARREN: It’s our best-case scenario. We’ve been painted into a corner with timing and cash flow and things like that. We want Chartier’s legacy to be able to live on, and our values. But it will take an investment.
SYLVIA: Since we put out the call for people to come out and support us till September 30, it’s been mind-blowing. It’s been so busy. Every day is a Saturday. Trying to keep up with the volume until we hit the 30th is our immediate view.
SYLVIA: There’s always hope. Our daughter is 10 years old and she’s always talked about working at Chartier. She’s excited to work with her friends, to be a hostess. She’s the one that keeps reminding us, ‘there’s still hope.’ So, maybe? It’s a really challenging time for the industry. There’s a lot of people out there looking for investment. You don’t know till you know.
