Almost half of Canadian restaurants still operating at a loss
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- Опубліковано 22 лип 2024
- Kelly Higginson, President & CEO for Restaurants Canada, talks with Financial Post's Larysa Harapyn about how higher costs and weaker consumer spending are a one-two punch for Canadian restaurants.
Restaurant price are up 50%, the size of meal portions is smaller , the quality of ingredients have declined and the customers are obligated to pay exorbitant tips even for the take-outs.
There are so many points I can make on this issue, but the biggest reason is Canadians have less disposable income.
I wont pay $40 for 2 people to eat a greasy 1/4 lber and fries anymore. The price point is too high. I can buy a sleeve patties, a large bag of fries from Costco for less from which we've had 3 meals and counting.
If we eat out, its at little Mum & Pop operations which offer great food, fabulous service at a great place.
It's been obvious for sometime that the the restaurant industry is due for a major contraction. The era of cheap and affordable dining out is over and it's not coming back. We're reverting back to how it used to be--eating at restaurants is for special occasions and for the rich.
what the fuck are you talking about, restaurants were always cheap especially fast food restaurants. Fast food in the 80s/90s used to cost 1/4th to 1/2th a hours of min wage. Now its slightly over an hour. Meaning the costs have doubled.
@@SquarishLink Right... that was the era of cheap and affordable dining... Previous to fast food, dining out was far less common.
@@hrmprofessor is your brain on backwards, dining out was huge how would you explain the explosion of fast food from the 70s till mid 2000s you're clearly retarded.
I'm not paying a waitress $20 for going to the kitchen & back.
*yeah plus they make crazy $$ amounts of tips, they make more then the cooks, who had to go to school for that job*
cmon, man
I'm sure we can find the people that would say the same about you.
@@mikeb5664 Go for it...LMAO We came to canada as 'federal skilled workers', with skills YOU ASKED FOR. As far as I can make out now there's no more easy money you're crying like babies. You're being pushed out by Indians because they work harder and bitch less.
@@mikeb5664 Still waiting...
For wife and I, 2 pizzas at $24 each, 2 drinks at $12 each, total is $72, plus 30% for tax and tips, grand total of $93. I can buy a lot of food at Costco for that same money. Dining out is absolutely crazy.
Uber eats is gouging like a cancer on the restaurants. Delivery drivers earn more than the restaurant on a given order
Maybe they should deliver their food themselves then.
Half of those restaurants give you your daily requirment of sodium in one meal
Daily?? Weekly!!!!
People should either home be a memolist.In so many ways canada is canada is in big trouble
@@Doug-zl8nb A what??????
You know it's bad when getting a Big Mac meal from McDonald's almost costs as much as an prepandemic entree at a traditional restaurant.
I don’t believe in any more government bailouts to any restaurants, or corporations of any kind. Expenses might be up but when are the owners or shareholders going to reduce their expected profit margins. We see with the grocery chains, landlords, investors of every kind. They want to push employees more, increase cost, and get government help because they aren’t willing to reduce profit expectations. I’m not talking about Mom & Pop stands, so much is driven by corporate stores and corporate restaurants.
Let them all go under, they are the problem. Support small local food establishments, pay cash, don’t use credit because that costs every business, and tip with cash to a personal server. You don’t know how many tips on machines are being taken by owners. We the consumer need to change our ways and restaurants will be forced to change or go out of business.
Canada, one of the most household indebted countries on the planet. People don't have disposable money to go to restaurants since they need it to pay their debts. No party in power will change this situation. People need to start living within their means.
It isn't just restaurants. Everyone is struggling. Its a good lesson though for business and the economy in general.
When the government tries to shut down the economy and lock up your customers, you need to sack up.
Tip Machines now are 15% 20% and 25% .......
*yeah because the rent for restaurants is crazy high*
It usually always comes down to wages as people can only produce so much at a time. Wages are coming in much higher than the said inflation rate.
I was at a restaurant and when I selected 0% for the tip (I only bought a $6 coffee) the machine responded with “please leave a tip 😢” so I left a 1% tip
Zero would be better. Don’t tip if you are standing.
@@paulcrosby6953 they really needed my 6 cents
Pay cash
@@paulcrosby6953 they really needed my 6 cents
you got sucked in by a machine - I wont go back to this place ever
Delivery adds more $ to the final outrageous price.
Time to close shop.
Why do I think rents are completely out of control? My family and I went out to a new food court downtown and each take out item I bought was around 20 bucks. I saw 18 dollar fancy hotdogs FFS.
Haha. You can buy 12 hotdogs and buns for $18.
@@MeMe-cz6pk LOL. Yes.
Shocking unreal indeed .😬😬😬
I have a small food store and the change happened twenty months ago. No low value product sells. Basic food sells, period.
Any ways they were over priced to begin with and i am tired of taking their entitlement and crappy service.
The easiest way to make a million dollars is to buy a restaurant for 2 million.
THAT STUPID MONEY WILL SEIZE TO EXSISTO
OK YOU GOT THE PLAN MY. 😅😅😅😊😊😊😊😊😊😊😊😊😊😊FRIENDS
There is a Restaurant in my community that automatically charges 20% tip, I will never go there and hope they go out of business
Why in Canada restaurants and real estate such a huge business??no country has such focus in such sector....
No renovations no engineering no tech no manufacturing no growth in others😅
That’s a poor take, restaurants are inconsequential, travel is somewhat important but the focus objectively is the financial sector and energy. Industrials is also an under appreciated sector.
Because Canadians born between 1945 and 1965 don't care about future generations, not even their own kids.
Enough with the 18, 20 and 25% tip rate already. It’s hugely embarrassing, particularly with the waiter standing there. People would rather stay home.
Yep, insane. Getting old. 10% was a good tip most of my life. This is now nonsensr. Tips on top of services charges as well. Time to fire up the grill.
Then why don't you just tip the amount you want. Never seen a machine w/o override.
I try to pay and tip in cash most of the times
You don't need to tip anymore as we have a $20 minimum wage, something that is supposed to be "Livable". That's why they increased the minimum wages to begin with.
Same here
People assume that being able to regularly go to a restaurant was always a thing but it was only really a thing since the 50s.
We’ll definitely learn to cook just make ends meet.
6-7 years ago we used to eat out twice a week. Now we go out once every two months. 26 dollars for a hamburger with fries, plus 7-9 dollars for one beer? We’ll bbq a burger at home and save. The gross tip expectations after the pandemic seem to be a big barrier too. It will take a few years for the industry to correct itself. It may look different, but until then…we are eating at home.
Almost 18 dollars for a big Mac combo with tax at mc donalds now in Ontario!!
Crazy times
agreed, its insane better and almost 10x cheaper to host at home.
Restaurants need to realize, people don't need them, its a luxury to go out for a meal, most can not afford it any longer, especially the tips! I seldom go out now, just too expensive!
I'm sure they do realize that. They are struggling to stay open
keep jacking up the fking tip rate.
Who is forcing you to tip anyone?
you know it's optional right? I stopped tipping a few years back, no one is calling the police if you tip $0.
@@Dragonstar-p5c i mean seriously, in majority of the cases, do you really believe 0 tip is an option across US and Canada?
I am a Chef, and I've been working in food service for about 35 years. Restaurants are usually first hit when the economy takes a downturn, and the last to recover. In a fairly healthy economy, there will be plenty of jobs available, and the work is generally open to skilled, and less skilled workers. Right now, the job openings are tight, and the positions available mostly require skilled cooks. The skill requirements are higher because employers need people to do more because they want to keep labor cost low. People in the industry are burning out, and the pay isn't high enough to keep lower skilled workers from fleeing the stressful demands.
The elimination of carbon is going to put the industry through a gauntlet in the next few years. The pressure to move away from natural gas to electric will break the industry. This is the calm before the storm for food service professionals and restaurateurs.
It's not just the staffing cost that's killing these business, it's the fix overhead, mostly rent and physical location related costs. Unfortunately since these are fixed overhead costs, the owners cannot do anything to lower them, then they turn to the variable costs which is usually labour and inventory. Once the shops close down the landlords will have trouble finding tenants again in the current economy and they will either have to sell or lower the rent just like what's happening in commercial office towers right now.
It's going to be challenging times across many sectors I fear.
I am retired. For years I saw the writing on the wall, so I moved.
I now live in a country where tipping is voluntarily, if at all. It is not expected.
Large bottle of beer is 65 cents.
Rent is $300.00 for an apartment to $500.00 for a large house.
My place is 5 minutes walking to a 5km long fantastic beach.
Breakfast omelette (3 Eggs) 75cents. a large foot long Sandwich $1,10
All prices are in Canadian Dollars, and are made on the outside
etc.....etc
Best move I ever made.
Cheers
weak men make hard times, your boomer satanic sex cult isn't worth funding further. Pension, pulled.
Same with events. 50% down. both social and corporate.
Payroll taxes, carbon taxes, rising wages are doing its work
Carbon taxes add
@@mikeb5664the average Canadian gets way more money from the rebate than they pay in carbon tax all year round. Only stupid people think it’s an issue
@@LePrimo420 The ignorant are gullible and will believe anything PP tells them. He will scream "Axe the Tax" to get them outraged, but won't tell them our trading partners will slap carbon tariffs on us the minute we eliminate the carbon tax.
How is ubar business in calgary ubar cab ? Any one knows in day shift
as long as I am required to leave 10 - 30% Tip on lousy food and service I wont go to a Restaurant anymore
only Northamerica has this crazy tip culture, a Tip is a personal decision on the experience of service and food and is generally a small amount to show the
apriciation of the service $1 - $2
Between the high food costs and paying at least $16/HR in wages I am surprised that more restaurants haven't closed.
Setting up for Robo restaurnt
Wages of your Customers must be increased and the over all expenses must be decreased, which is more than taxes.
The question is how long must I work to meet the cost of going to the restaurant? If I have to work longer then I will go out fewer times and only for the discount hours, if it is shorter amount of time to pay for the experience then the more frequent I will go out. If you pass the cost on to me as the consumer I will pass on your restaurant and will make dinner my self at home.
No cutting corners on Food and the quality of the preparation and presentation.
Stopped eating in restaurants all together. Only time I go is if someone else is paying.
great reporting
Prices are high. Tips are high and the WORST is paying HST on the total!
Businesses can't make a loss forever. It's been 4 years now - why are there still so many restaurants?
It is not possible to go to the resturant anymore unless you are a tourist with euros or dollars. So A good question would be : For who the restaurant are existing for ? 50$ for a medium thing, it is a no go. Even in the grocery stores, the prices are too expensives, and I am now chasing discount only to feed myself.
I enjoy grilling ribeye steak at home, and it costs me about the same as a fast food meal with fillers.
how about lower housing cost so young people can afford to go out? Don't give me the economy will crash crap, with a housing bubble like this society will collapse.
This is what Trudeau and WEF want. Immigration invasion and housing bubble part of the plan.
How about young people STOP voting Liberal and NDP ! They are the cause of all this inflation. Policies have consequences, vote for fiscal control, vote Conservative. Life is ALWAYS better under a Conservative government, because they have common sense. Something the Liberals and NDP lack.
Well said. Yes they will collapse the society to save the housing bubble. 😢
Who do you want to subsidize this young people eating out? Other working taxpayers? Not a chance.
Get on a budget and get a room mate. How about that?
@@MeMe-cz6pk You make no sense. How is lower housing cost a subsidy? If anything, high housing cost is a terrible tax on people who dont own home (mostly young people). Which is subsiding those home owners. Which is transferring wealth from the have nots to the haves. Thats like draining blood of poor people and feeding it to fat cats. Do you have a functioning logic center??
It’s not only restaurants it’s barber shops, gyms, attractions/live ent etc. peoples habits have changed as well as disposable income. The restaurant lobby is powerful however there not the only ones
I resent having to pay tips. I never go to places I'm expected to tip. The food is expensive enough.
Pump more in the housing market.
2019…the good old days
1950 is the good ole days!!!!!
Higher rent costs, higher minimum wage, higher tips (why they expect you to tip on tax is beyond me) has resulted in restaurants charging prices most people can’t afford, so they stay home. Interesting that restaurants will get a major boost when Taylor Swift comes in, and people spend thousands on tickets that they can’t afford.
Should have factored in how many people improved their home cooking and nutrition during Covid while restaurants were all but shuttered. Why eat third-rate cooking with questionable ingredients when you can cook an excellent and nutritious meal at home and save money? Tipping expectations are insane too.
I don't tip anymore
gosh! Is there any good news in this Trudeau economy?
Canada isn't technically in a recession just yet.
Lol ok...
We just need the federal government to do nothing but resign in shame. They have done enough damage.
Trudeau should be proud
How much of this is tax evasion?
It's inflation my friend! doesn't need much to analyze.
Restaurant industry is simply pure competition. Too much competition. If you want to profit avoid this industry.
Larysa Harapyn still hot AF
I think its more the absolute poor quality and poor service ever since the pandemic atleast 50% of the reason i dont want to go eat out anymore
But Canadian Restaurants are selling Immigrants LMIAs to cover up the losses
Trudeau taxes your meal always taking a large bite. Just an average restaurant is $40 per person 😮.
Trudeau's crappy Canada
Says the man with no background in finance and a room temperature IQ. Inflationary pressures was a global issue but, people forget that. Pierre is no better than Trudeau.
CANADA IS GONE FOREVER. NO ILL FIX IT
SOON ENOUGH 😊😊😊😊
If it’s on loss . Just shut and go away
FP= 💩
No more free money sorry
No doubt because of the huge wage hikes year over year and the ever increasing minimum wage. The increasing minimum wage is forcing small businesses into receivership or forcing them to relocate out of province or out of the country.
In Montreal, it’s all of the taxes and fees that are killing the restaurants, including municipal taxes. Now, the mayor wants to to eliminate charcoal as well as gas…..
Sure, let's have everyone live in tents so you can eat at a restaurant.
All these comments talk about companies, insurance Etc. Every comment should be why governments caused this!!!!
Yes well, the vast majority of restaurants serve absolute garbage.
Get rid of the stupid tipping culture.. Then maybe people will dine out, or fire these servers and let me serve myself. Waiters don't offer me anything of value to me to get a 20% tips.
Tipping is not new. And its optional as far as I know.
@@mikeb5664 Yeah, optional.. I had a server call out about my parents tipping less then expected. And then tell me its optional. Tipping culture make these servers act like they own the place and customers owe them money. For the easiest work. Coming from Canada. Where people are paid minimum wage for being server. Not like US where people are paid 10-20% of minimum wage.
@@bknghiem LOL, ya it's optional. But, cool story about Mom & Dad. I sure hope they've recovered.
restaurant job are not job....this is meant for familles to open and employe themselves
Businesses are struggling. Trickle down effect will continue. Government bloat on the rise.
Due to convid mandates