According to the consumer price index (CPI) published by Statistics Canada on July 22, the price of meat increased 8.1 % year over year in June, the price of beef coming to a head.
July 24, 2020
Updated on July 25, 2020 4h20
Restaurant owners forced to increase the price of the menu
The new sanitary measures of the COVID-19 associated with the increase in food prices alter the business model of the restorers. Some of them must, reluctantly, increase the price of their menu. A way to ensure their cost-effectiveness, do they entrust.
“It’s been two years that we have not increased our prices. With the increase in food prices, and expenses related to the COVID-19, this was the moment,” says Gratien Bonnery, director at The Three Boys.
“It has increased a little bit the price and we amended the quantities in the plates for this to be more profitable.” He stressed, however, that customers are more satisfied. “The plates are more beautiful than before and the portions are more generous”, he says.
The hotel is located in Old Quebec, specializing in burgers, is not spared by the rise in the price of food, particularly meat. According to Mr. Bonnery, the price of the suppliers of meat has increased 5 % since the crisis.
According to the consumer price index (CPI) published by Statistics Canada on July 22, the price of meat increased 8.1 % year over year in June, the price of beef coming to a head. This increase was a result of the closure or reduction of production in several plants processing beef in April and may, because of the COVID-19.
At the brewery Griendel, where the dining room is increased from 120 to 45 seats, the co-owner Martin Parrot has also noticed a rise in prices of suppliers. An increase of 7% to 12% on average.
“I can’t absorb 7 to 12 % increase of my inputs. If I am not able, in normal times, I’m even less in times of crisis. In the time of a pandemic, it is a huge burden. ”
Martin Parrot, co-owner of brewery Griendel
The price of some dishes has therefore increased slightly, most of these dishes contain meat. Other dishes have not changed in price, even as their price has dropped, but they have to be edited to ensure their profitability. In addition, customers are now paying for sides, such as fries and salad.
Mr. Parrot points out that the changes to the menu have been well received by the customer. “When we take the time to explain the new formula, customers were understanding.”
Other restaurants have chosen the status quo in order not to penalize the customer. This is the case with Tapas, and Cork, located on avenue Maguire. “It is sure that it is affected by the rise in food prices and the COVID-19, but it never goes to pay our customers. It is a enterprise choice,” says co-owner Vanessa Roberge.
Find a “fair balance”
To François Meunier, vice-president of public and governmental Affairs, Association des restaurateurs du Québec (ARQ), the practice is “not surprising” and “appropriate given the circumstances.”
“Some operators need to pay between 5000 $ and 6000 $ for the costs associated with sanitary measures, such as masks, visors, plexiglass, displays, and disinfectants.”
He adds that the distancing physics requires a reduction of the capacity of the restaurants, so lower incomes. “The majority of restaurant owners realize half of their turnover.”
“Restaurateurs can no longer operate the same way. Their business model does now more the road. Any experienced manager should make this reflection-there.”
He stressed, however, that this approach must be used cautiously, as consumers remain price-sensitive. “In the current context, it is not everyone who has been able to retain the same purchasing power. It is necessary to find a balance to ensure the level of profitability of the enterprises and take into account the ability of clients to pay.”