Road construction and high taxes force 17 Avenue waffle house to close its doors

Michael Franklin Web Producer

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A small Calgary restaurant will be closing its doors in the new year, citing a number of different reasons including tax increases, road construction and a lack of customer base due to the high downtown vacancy rate.

Buttermilk Fine Waffles on 17 Avenue S.W. announced this week that it would be closing down in its third year of business, saying high taxes and some major road closures were to blame.

Owner Sam Friley says the biggest problem came from the road construction that became frustrating at times.

“A lot of the time, there was nothing happening. It was just blocked and there was no activity and there were no answers. That was really hard. You lose about 50 percent of your sales right there.”

He adds that Buttermilk’s property tax bill also jumped from $11,000 to $25,000.

“That’s completely unaffordable. That’s starting to make up about a third of the rent we pay.”

He realizes the past three years have been difficult on everyone in Calgary and opening a business at that time was a risk, but he feels the city should have done more to help out.

“I don’t think they’re willing to do the hard work necessary to figure out what is broken about the property tax algorithm and system of enforcing property taxes,” he said. “If the algorithm is destroying small businesses in Calgary, then maybe the algorithm needs to be looked at.”

He added that downtown vacancy has also taken a chunk out of their business.

“In 2015, we had a really strong summer and there was more density downtown. At that time, there wasn’t these 35 percent vacancy rates in downtown Calgary. There were people working downtown so obviously density has become a major issue.”

The Canadian Federation of Independent Business says the issue with Buttermilk reflects a bigger issue that’s affecting small business confidence.

“We’ve dropped almost nine points on our small business barometer that measures confidence and it’s really concerning because we’re seeing a lot of frustration and angst in the business community,” said Amber Ruddy with CFIB. “We’ve seen a big hit in the retail and hospitality sectors.”

She said about one quarter of the small businesses they’ve spoken with say they are contemplating reducing staff in the next three months.

“Taxes, red tape [and] wage pressures are some of the top concerns of entrepreneurs at this time of year.”

She hopes that things will change for small business owners in 2019.

“We need a new vision for entrepreneurs to create that competitive advantage that Alberta was once known for. I think a lot of people are wondering where that Alberta advantage has gone and now is the perfect opportunity to create that vision for success.”

Friley says while the building may be closed, that doesn’t mean the business has been shut down.

“By no means is Buttermilk done. We’re simply hitting ‘pause’ and are figuring out how to go forward in Calgary in a way that actually is viable.”

He says Calgarians could eventually see smaller versions of Buttermilk appearing at farmers markets and food halls in the Calgary area.

(With files from Jordan Kanygin)

RELATED IMAGES The owner of Buttermilk Waffles on 17 Avenue says the city hasn't done enough to support small businesses. The shop is set to close on January 1.