One-third of Canadian restaurants operating at a loss as costs rise
Restaurant owners are raising menu prices at record rates, but at a pace that is slower than their costs are rising A third of Canadian restaurants are operating at a loss, according to a report from Restaurants Canada. This is due to rising costs of ingredients, insurance, and wages, making it difficult to make a profit. The report also revealed that 34% of restaurants were operating at loss as of March, 2023, compared with seven% before the pandemic. The food services and accommodation sector has seen the most insolvency filings, with 70 filings in August alone. Despite this, overall spending in the sector continues to rise, suggesting strong consumer demand. Restaurants are raising menu prices at record rates, but at a slower pace than their costs are rising.
Опубликовано : 2 года назад от timescolonist в
A third of restaurants are operating at a loss and the sector is poised for upheaval, according to a new report from Restaurants Canada.
But even as the top line grows, restaurateurs say they are facing increasing pressure on their bottom lines because of the rising costs of ingredients, insurance and wages. That is making it challenging to turn a profit: 34 per cent of restaurants were operating at a loss as of March, 2023, compared with seven per cent before the pandemic, the report says.
. For example, in March, 2023, menu prices went up 6.4 per cent, while the price of food sold at grocery stores was up 9.1 per cent, according to Statistics Canada. “The scary part of increasing prices is the way you find out that you’ve pushed too far is that people stop coming back,” she said. headtopics.com
One of her favourite menu items is a tempura-battered cauliflower, based on a recipe from her grandmother. She said the price of a head of cauliflower was about $3 a couple of years ago, and has typically been $4 or $5 this year – and she was shocked recently when her staff brought in a new case of cauliflower.
She said she’s cut other items because of their costs. “We’re not putting a steak on the menu right now because I don’t want to have to charge guests $45 for a steak,” she said. “That price point scares me. headtopics.com
The food services and accommodation sector has been the sector with the most insolvency filings, federal data show. There were 70 filings in August alone. Still, overall spending in the sector continues to rise, suggesting there is strong consumer demand, which is giving restaurant owners some cause for hope.
One-third of Canadian restaurants operating at a loss as costs riseRestaurant owners are raising menu prices at record rates, but at a pace that is slower than their costs are rising Read more ⮕
One-third of Canadian restaurants operating at a loss as costs riseRestaurant owners are raising menu prices at record rates, but at a pace that is slower than their costs are rising Read more ⮕
One-third of Canadian restaurants operating at a loss as costs riseRestaurant owners are raising menu prices at record rates, but at a pace that is slower than their costs are rising Read more ⮕
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