Restaurants in Regina struggle to keep up with industry inflation
Local restaurants have had to consider cost-cutting measures as the industry continues to feel the financial effects of the pandemic.
As business gets back to normal companies are trying to make up for lost revenue, including food suppliers who have had to increase costs for vendors.
“What we are seeing right now is inflationary trends,” John Hopkins, CEO of the Regina and District Chamber of Commerce, said. “So the suppliers are going to pay more and they are going to pass on there costs and ultimately it gets passed to the consumer.”
Hopkins said for restaurants, who were already struggling in this pandemic, food costs are rising and they have to find ways to make up for it.
“At the end of the day if the business is not making money, it has to make a decision. Are we going to lay off staff, are we going to eat the costs or are we going to increase prices,” Hopkins said.
Tim Rogers, co-owner of the Lancaster, said since restrictions lifted on July 11 he has seen a small customer increase, so increasing the menu prices wasn’t going to help offset the costs.
“We are at 50 per cent capacity so you know raising our prices isn’t really an option and so it’s starting to become challenging to operate,” Rogers said.
He said rising food prices were a concern before the pandemic, but now it’s hard to keep up.
“Pre-pandemic the Canadian national profitability of restaurants was somewhere around four per cent, so that’s four cents on the dollar that restaurants were making and that was before the pandemic,” Rogers said. “It’s at that or worse now so that makes it extremely challenging to do a business.”
Instead of laying off staff or changing too much in the restaurant, he decided to start working with local producers.
“In Saskatchewan we’re in the middle of where all the food is made,” he said. “It has basically forced us go out and go right to the suppliers and stop going to the big suppliers and try and work with the local producers.”
“It keeps all our ones right in the province so it’s a win all around. For us it’s the way of the future and I think a lot more restaurants will be going that way too,” Rogers added.
Rogers is optimistic that by September there will be a small economic boom with people going back to work and school that will help bring back some revenue.
He said many restaurants and those in the industry are also looking to both the provincial and federal governments for help, in terms of more support or tax exemptions, until they can get back on their feet.
CTVNews.ca Top Stories
Doctors ask Liberal government to reconsider capital gains tax change
The Canadian Medical Association is asking the federal government to reconsider its proposed changes to capital gains taxation, arguing it will affect doctors' retirement savings.
Keeping these exotic pets is 'cruel' and 'dangerous,' Canadian animal advocates say
Canadian pet owners are finding companionship beyond dogs and cats. Tigers, alligators, scorpions and tarantulas are among some of the exotic pets they are keeping in private homes, which pose risks to public safety and animal welfare, advocates say.
Prince William and wife Kate thank public for birthday messages for son Louis
Prince William and his wife Kate thanked the public for their messages which had been sent to mark the sixth birthday of their youngest son Louis on Tuesday.
She was the closest she'd ever been to meeting her biological father. Then life dealt her a blow
Anne Marie Cavner was the closest she'd ever been to meeting her biological father, but then life dealt her a blow. From an unexpected loss to a host of new relationships, a DNA test changed her life, and she doesn't regret a thing.
How quietly promised law changes in the 2024 federal budget could impact your day-to-day life
The 2024 federal budget released last week includes numerous big spending promises that have garnered headlines. But, tucked into the 416-page document are also series of smaller items, such as promising to amend the law regarding infant formula and to force banks to label government rebates, that you may have missed.
Which foods have the most plastics? You may be surprised
'How much plastic will you have for dinner, sir? And you, ma'am?' While that may seem like a line from a satirical skit on Saturday Night Live, research is showing it's much too close to reality.
'Catch-and-kill' strategy to be a focus as testimony resumes in Trump hush money case
A veteran tabloid publisher was expected to return to the witness stand Tuesday in Donald Trump's historic hush money trial.
Quebec farmers have been protesting since December. Is anyone listening?
Upset about high interest rates, growing paperwork and heavy regulatory burdens, protesting farmers have become a familiar sight across Quebec since December.
South Korean sentenced to 14 months in jail for killing 76 cats
South Korean man has been sentenced to 14 months in prison for killing 76 cats in one of the country's most gruesome cases of animal cruelty in recent years.