2023-08-14 04:56:11
Posted at 12:56 a.m. Updated at 5:00 a.m.
Prices are rising everywhere, and restaurant menus are no exception. Customers, having trouble digesting these salty bills, are starting to desert the dining rooms, note some restaurateurs, who are apprehensive regarding the coming fall.
In this context, lunch establishments are full of customers. Some seem to have decided to swap dinner at the restaurant for a “two eggs and bacon” style meal, which is often less expensive.
“We always wonder how far we can stretch the elastic,” admits Martin Vézina, vice-president, public affairs, at the Association Restauration Québec (ARQ).
According to him, restaurateurs have their hands tied at the moment. “If we raise our prices too much, customers won’t come. If we don’t raise salaries, we won’t have any staff. How can we do that? “, he asks.
PHOTO OLIVIER JEAN, THE PRESS
Branch of a St-Hubert restaurant, in Montreal
“It is difficult to quantify precisely. But yes, we can say that we see a difference in customer traffic,” adds Richard Scofield, President and CEO of Groupe St-Hubert.
“Yes, that concerns us,” he adds. We hear what people say [à propos des prix]. »
From $22 to $28 in four years
And consumers weren’t dreaming. Eating in restaurants is more expensive than before. In 2022, 47.4% of restaurateurs increased the prices on their menu by at least 6% to 10%. This year, more than half (56.8%) intend to raise them by 6% to 10%, according to data collected by the ARQ. For example, the Thai grilled beef salad served in ZIBO! cost $22 in 2019, dropping to $27 last year. And today, customers who order it have to pay $28. At La Cage–Brasserie sportive, the signature burger (Blitz burger) went from $16.75 (November 2018) to $19.75 last year to finally be displayed on the menu at $20 this year. To add weight to the bill, in many restaurants, the price of a glass of wine exceeds that of a bottle purchased at the SAQ.
Although these increases are justified, according to restaurateurs, because of the increase in food prices and wages, some consumers have simply chosen to eat at home instead of buying a meal outside.
“There are people who stop going to restaurants and it’s worrying,” confirms Mr. Scofield.
PHOTO DOMINICK GRAVEL, ARCHIVES LA PRESSE
Richard Scofield, President and CEO of Groupe St-Hubert
Every month, there are people who renew their mortgage. They are taken with high rates. Every month, there will be more and more people who will begin to reassess their rhythm of life.
Richard Scofield, President and CEO of Groupe St-Hubert
With fairly stable traffic for the past year – which has never returned to pre-pandemic levels – Benjamin Chèvrefils, vice-president and general manager of Groupe ZIBO!, expects the inevitable: the number of customers will table in ZIBO restaurants! and Vertigo – two brands managed by the group – will decrease over the next few months.
“It is sure that it will tend towards that. It will happen eventually. It’s always been the fear, he admits. Going to a restaurant is not an essential expense. »
“We also agree that no one is going to lower their prices,” he said. The danger of constantly climbing is that you become less and less competitive. »
It’s not just the channels that are noticing a drop in attendance. On the Plaza St-Hubert, in Montreal, the owner of the Beaufort Bistro, Jean-François Girard, “clearly” establishes a link between the increase in the bill and the desertion of customers. Over the past two years, the prices on its menu have increased between 10% and 20%. At the same time, he noted a drop in traffic, which began at the end of last winter. “Suppliers have also told me regarding it. They see a difference in their sales,” he points out.
Two eggs instead of a meat dish
In return, due to the context, some restaurateurs who serve lunches are full of customers. This is the case of François Roy, owner of the Matinée restaurant, in Saint-Jean-sur-Richelieu.
PHOTO ROBERT SKINNER, THE PRESS
François Roy, owner of the Matinée restaurant
Our customers tell us that it has become too expensive, an average restaurant bill for dinner. As a result, we have more and more groups coming for birthdays. They come for lunch because it’s cheaper.
François Roy, owner of the Matinée restaurant
He adds in the process that his restaurant is often “full to bursting”, even on early weekday mornings.
Although he himself is in the business, Mr. Roy confides that “both arms fell on him” when he received the bill at the end of his most recent dinner at the restaurant. “It was very expensive. »
PHOTO ROBERT SKINNER, THE PRESS
Cuisine of the Matinée restaurant, in Saint-Jean-sur-Richelieu
His secret to retaining and attracting new customers: “We have only raised prices once since COVID and only on luxury plates like pancakes and waffles. My two eggs turned bacon, I left them at the same price. »
Closings to be expected?
According to François Roy, many restaurateurs are unfortunately at risk of throwing in the towel over the next year. The coming fall might be difficult for many of them, also believes Martin Vézina, of the ARQ.
According to data compiled by the Office of the Superintendent of Bankruptcy, 262 restaurants closed in 2022 in Quebec. This year, between January and July, 178 declared bankruptcy. It is feared that several others will inflate this figure.
In addition to customers who may be fewer, restaurateurs who received help from the federal government under the Canada Emergency Business Account (CEBA) have until December 31 to pay two-thirds of the loan. , if they want a pardon. Beyond this date, they will have two years to repay the full amount, with interest.
“In addition to their operating costs, they will have to repay their loan,” points out Mr. Vézina. That’s a big concern. It is believed that there are some who will not survive. »
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