CALGARY – Just because your favourite eateries are back in action doesn’t mean they’re out of the woods just yet.
A new survey by Restaurants Canada indicates rising food costs are affecting already razor-thin margins in the industry.
According to the restaurants we spoke with, the jump is anywhere between 10 and 30 per cent, depending on the food.
This, after a year that’s already been less than ideal for most establishments.
“Just another layer after another layer,” said President of the Alberta Hospitality Association Ernie Tsu.
High shipping costs, increases in grain prices, and delays in the supply chain are all causing food prices to jump.
The survey also found that nearly half of Canadian foodservice businesses have been consistently losing money for more than a year.
Now, as Alberta restaurants and restaurants across the country begin to reopen and expand service with fewer and fewer restrictions in place, this additional challenge leaves restaurants with a couple of options: either eat the cost or raise your prices.
“There’s going to have to be a raise on menu prices for sure,” said Tsu.
Despite the added layer of expense, restaurant owners say the public has been incredibly supportive of the reopening and they expect that to continue.
“Restaurants are resilient, and the public has been very supportive, so we just have to look at raising prices and adjust accordingly to the rising food costs.”
