Taking a break from the weird and cheeky observations normally housed on this blog to bring you intelligent and insightful observations from an entirely different source, CRFA’s new President and CEO. Enjoy!
Full name: Garth Whyte
Age: “I was born 5-5-55”
Hometown: Ottawa (born in Nottingham, UK)
Current position: President and CEO, CRFA
First job: Paper route
Education: B.A. in English and Geography and M.A. in Public Administration (Carleton University), Canadian Securities certification and extensive executive training
Garth Whyte joined CRFA in June 2009, following a successful 23-year career with the Canadian Federation of Independent Business. Recognized as one of Ottawa’s top lobbyists by the parliamentary affairs journal, The Hill Times, Garth has held several senior positions involving government affairs, strategy development, membership and operations. In this interview with Newsbite blogger Jeni Armstrong, he talks about his vision for CRFA and the challenges ahead.
JA: I’m going to borrow a format from our friends in the States … if you had to lay out a mandate or a vision for your “first 100 days” at CRFA, what would that include?
GW: Well, I’m working on that right now, actually. First off, it was important for me to meet the board, meet the staff and get to know our members better. I would like CRFA to be the “go-to” association, so that restaurant chains and independent restaurateurs understand that without question they should be a member of CRFA, and so that government knows that without question they should come to us for input because we are the voice for Canada’s restaurant and foodservices industry.
In terms of the first 100 days, that means that we have to set the table for that kind of shift. Everyone should be celebrating the high quality of food that’s offered by all Canadian restaurants. I think a lot of people take that for granted. I think we have to start pushing politicians to recognize what a great product we offer, and what a great service we offer, all across the country. And they need to understand how unhelpful it is to keep throwing up barriers to restaurateurs who are trying so hard to do a good job.
JA: You have a lot of experience working with independent businesses. What would you say sets an independent restaurateur apart from, say, someone who owns an independent clothing boutique? Or are the business challenges essentially the same?
GW: The business challenges are more or less equivalent but I think the operational challenges are even greater for a restaurant. The range of responsibilities is just so huge. There are staffing issues, marketing issues, customer service issues, financing issues and a lot of competitors – and add to this all of the food quality concerns that restaurants have to deal with on a daily basis.
My definition of an entrepreneur is “body mass divided by scar tissue.” Entrepreneurship is being able to deal with failure. And in the restaurant business, yes, people fail, but they keep coming back. There’s a tremendous resilience in this industry, and I think that’s really important. The successful businesses learn the tough lessons and keep coming back. Like all entrepreneurs, restaurateurs embody a sense of eternal optimism and yet at the same time, the successful operators know to keep a close eye on the bottom line.
And, of course, the great operators are also really good to their people. I’ve talked to a lot of independent restaurant and franchise owners and one of the things I hear time and time again is that they’re doing everything they can to take care of their people.
JA: Are there other things that you think are unique to foodservice?
GW: I think that foodservice operations have a pivotal role to play in the life of our communities. That’s something that all of our members have in common, from a small coffee shop to a very high-end restaurant. These days, when everything is so rushed, we really do need places where we can meet with our friends and family, where we can celebrate or just hang out. That’s the kind of special space our members provide.
And that’s an experience that I think is sometimes taken for granted by politicians and decision-makers. They say, “Coffee shops are great,” and then they turn around and raise minimum wages, or introduce a restrictive regulation. They skip over the value that our members provide to communities – a value that goes beyond just creating jobs and generating taxes.
JA: Restaurant operators are now contending with more business challenges than ever before. What would you cite as one of the biggest ones, and can you talk a little bit about how is CRFA responding?
GW: I look at it in terms of short-term and long-term challenges. The short-term challenge is the recession, and how to survive this downturn on top of all of the layers of taxes and regulations you’re forced to deal with regardless of how the economy is doing. In the short-term, I think that many of our members are faced with simply keeping their heads above water.
In the long term, the biggest issue – really, it’s like a tidal wave when you think about it – is the shortage of qualified labour. Because you can’t run a people business without people. Restaurants need qualified chefs and top-notch front-line staff to succeed. There is a coalition of business groups that is now getting together to try to address this challenge – and interestingly, it’s almost all business groups, because it’s a challenge that’s affecting all kinds of different sectors. We need to develop a common vision on this issue, one that respects how it’s going to play out all across Canada. We’re being hit by a demographic tidal wave; two years ago was the first year where the number of people retiring equalled the number of people entering the workforce. We have to find a way to offset that, whether it’s through immigration or amending EI policy.
The labour shortage is an issue that’s not unique to foodservice, but we’ve been feeling its impact for years. That’s why I think it should really be an issue in the next election. It’s a common issue, it’s a non-partisan issue, it’s an issue that calls for action from both the federal and provincial governments. There are many different things government and business could be doing to address this, and I think it’s going to continue to be a top issue for CRFA and our members well into the future.
JA: Earlier you mentioned that you’ve been talking to restaurant owners. What steps are you taking to learn more about the needs of CRFA members?
GW: It’s not just me – all CRFA staff are talking to our members. We’re getting out there, from our lobbyists to our membership reps, to find out what our members are facing, and to find new and better ways to tell their stories. One of the things that we’re doing is linking our legislative campaigns – our government lobbying efforts – to our membership activities in a more direct way. You’ll see more of that. For example, the Neighbouring Rights Collective of Canada are trying to get a new fee in place that would increase the cost of playing dance music by $6,000 to $30,000. That’s an example of one issue that should get many of our members pretty darned upset – and they are upset about it, by the way! We will be at our most effective as a business association when we have our members directly engaged in the issues that impact them. That’s something we’ve already started to focus on and you’ll see more of that in the future.
JA: And what would you say to a restaurateur who is “on the fence” about whether or not to join the association?
GW: I’d say this: We are your voice. We are your organization. And if you don’t join the fight on issues that hurt your business, if you don’t lend your voice to our campaigns, why should government listen? You’re losing money to punitive taxation schemes, and you’re losing time to endless paperwork, and you’re losing your voice if you’re not part of the association.
JA: How you do you measure business success?
GW: When it comes to CRFA, I think we succeed when we improve the bottom line for our members and when we achieve actual victories on the legislative front. We’re getting it right when we save our members time and money, when we make their lives easier. Over my career, I’ve been a part of saving the business community billions of dollars, and I find that tremendously satisfying.
JA: Switching gears for a second, can you tell me about a particularly memorable restaurant meal or experience?
GW: I remember one meal we had … it was a particularly good restaurant and the meal was excellent, as expected. It had been a very satisfying experience, and then along came a plate of cheeses. And I actually had a physical reaction when I took my first bite. I couldn’t believe or express the sensation – it was so good. It completely caught me off guard and I don’t think I’ll ever forget it.
Another example would be the kind of meal I’ve often had after a basketball tournament. Two of my three children play basketball competitively and after a game, whether we’d won or lost, we’d often to go a local chain restaurant for a meal. And to be there with friends, your family, your kids and their team mates to celebrate – those are really good times and good memories.
JA: One last question … in accepting this position with CRFA, you moved to Toronto from Ottawa, so I have to ask the obvious question: Leafs or Sens?
GW: Sens. Absolutely. In my previous job I used to get teased because Toronto always beat Ottawa in the playoffs, so in a way the Leafs’ Stanley Cup is to beat the Sens. (laughs)
I should tell you that even though I’m an Ottawa boy, I did live out west for about 12 years. Two of our children were born in Winnipeg and I also lived in Regina for six years. And I’ve lived in Toronto as well. So we have lived in many different places in Canada, and we chose to come back to Toronto when the opportunity presented itself. And when I do what I call my “gut check,” there’s no doubt at all that I made the right decision to come to Toronto and to CRFA.

Garth,
As a fellow CFIBer (past DM under M. Kirwin/Mark Collins), well wishes on your appointment. I know your passion for independent business will help the CRFA reach new heights.
Since I left CFIB, I have ventured out on my own to become a restaurantuer and I look forward to working with the CRFA. I have found that getting funding for our business is exteremly challenging. There is a prominent government backed programs that guarantees up to 90% of funds loaned by financial institutions to new ventures. They have outrightly refused to work with me because of our industry. I also got the same answer from the BDC. Most other banks will only entertain your idea if you are an established franchise.
Where does financing rank on your policy agenda?
Sham