Studabakers Beachside Restaurant in downtown Orillia survived a major scare this week that could have permanently shut down the popular restaurant.
Owner Joe Winacott, who heard about possible concerns about obtaining insurance for restaurants, reached out to his insurance company about a month ago to begin discussions about renewing his insurance.
“I was told by the insurance company that we were not going to be renewed and we had 30 days to find new insurance,” Winacott explained.
Winacott was told that because of the COVID-19 pandemic, restaurants are being considered a high-risk business to insure. Studabakers was deemed an extra risky business to insure due to a fire claim from 2018.
“We spent day in and day out calling as many insurance companies as we could. I probably contacted 40 brokers,” Winacott said.
“They all spoke with their rep and insurance company they deal with, and everybody came back and said no.”
After nearly a month of unsuccessful attempts to obtain insurance, Studabakers was set to close their doors this Friday at 9 p.m.
“I didn’t know what to do. Should we shut down and keep trying to find insurance? Should we sell the business? All these thoughts were going through our head, and realistically it seemed like we would be closing down for an extended period of time,” Winacott said.
“We have 25 employees here who would have been out of work this Friday, and we definitely didn’t want that to happen at this time of year, especially with times being tough for everyone with COVID,” he said.
Winacott desperately reached out to the provincial government for help. However, MPPs and government officials were only able to supply Winacott with more brokers to call, which turned out to be not helpful at all.
“I sent three messages to Doug Ford and didn’t get any response from him,” Winacott said, referencing Ontario's Premier, who often boasts of providing his cell phone number to the public.
“He keeps saying he’s all about small businesses, but to me, it seems like he keeps shutting them down, and he isn’t offering too much relief or help.”
Earlier this week, Winacott happened to stumble upon an article about a Peterborough restaurant that was going out of business because they couldn’t find insurance. However, after notifying the town, just a few days later, they were able to obtain insurance.
“I did the research and found out who they were insured by. I contacted that company and they got us approved yesterday,” Winacott said, with relief.
“It was a major relief, and we are so thankful that we didn’t have to lay off our employees during the holidays.”
The weight is finally off Winacott’s shoulders, and now he is ready to face the next challenge brought on by the pandemic, as local businesses brace for yet more potential restrictions and even a lockdown.
“Since I own the building here, we are not allowed to apply for the rent relief program, so if we do get shut down into a red zone, we are going to have to figure something out. We might need another loan or something,” Winacott explained.
Winacott remains optimistic that his restaurant will survive the next stages of the pandemic and the winter months.
“We are really happy with the support we’ve received. We want to thank our customers for ordering take out and coming into the restaurant,” Winacott said.
“During these challenging times, we know a lot of people are trying to save their money, so we really do appreciate the support.”
