Kanata restaurant announces sudden closure

Kanata restaurant suddenly closes Darcy McGee's in Kanata has suddenly shut its doors, marking another restaurant closure in the capital. CTV's Kimberley Fowler reports.

Popular Kanata restaurant D'Arcy McGee's has suddenly closed its doors.

In a post on Facebook Tuesday night, D'Arcy McGee's said, "We will sadly be closing our doors."

"We want to assure you that this decision was not taken lightly. We treasure the shared experiences with you and appreciate your patronage greatly."

No other information was provided on the sudden closure. D'Arcy McGee's was located on Terry Fox Drive.

John Nixon of Foodtastic told CTV News Ottawa the restaurant is closed due to issues with the franchise agreement.

A photo of a sign posted to the door of the restuarant was shared to Reddit, showing the franchise was more than $73,000 in arrears.

This is the second sudden closure of an Ottawa restaurant this month.

Last week, Oz Kafe closed in the ByWard Market after being unable to pay nearly $40,000 in rent to its landlord.

"So what we see is a change in the consumer trends. For instance, Canadians still love dining out. We're talking about about 45 per cent of Canadians that dine out once a week, which is good," said Maximilien Roy, with Restaurants Canada. "What we see though, at the same time, that there is rising debt and affordability is really the name of the game right now."

Roy says in the last year, food prices have gone up 25 per cent, insurance costs are up 24 per cent, utilities are up 20 per cent and labour costs are up 18 per cent.

"We've seen in the first three quarters of 2024, it was very hard for the restaurant industry. We're talking about 53 per cent of restaurants right now that are operating at a loss or barely breaking even. And if you look at before the pandemic, that was about between 10 and 19 per cent," Roy said.

Roy said Restaurants Canada is pushing for more government support.

The closure caught residents in Kanata by surprise.

"I actually just found out last night," said Daniel Kearns.

Kearns said the area has a disadvantage compared to downtown Ottawa.

"A lot of places like downtown on Elgin Street, the clientele is an endless trickle in... But out here, not a chance. There's no housing around here, just businesses, the hockey arena down the street," he said. "People just don't have the money for this. They save all month, they go to a hockey game with their family; I mean, that's what, a $500 night? You're not coming after a hockey game and going partying for another $200."

--With files from CTV News Ottawa's Kimberley Fowler