The past three years have been difficult for eateries in the Okanagan.
While many people are still healing from the COVID-19 pandemic, there is a serious labour shortage.
“If you see a restaurant closed, it’s likely because they don’t have any labour,” said Ian Tostenson, president and CEO of the BC Restaurant & Foodservices Association.
However, inflation has dealt restaurants a new setback.
The general manager of DunnEnzies Pizza, which has three locations in Kelowna, Meagan Keelaghan, claimed that inflation had a significant negative impact on her company.
Similar to other eateries, DunnEnzies is grappling with rising food prices, which significantly affects its bottom line.
“We compared prices on our top ten purchases from January of this year to the present,” claimed Keelaghan.
“A 20-kilogram bag of the flour we need to make pizza used to cost us $19, but it now costs us $42 for the same bag. We used to pay $20 for the (jug in a box) of oil we use for our fryers, but they now cost $50.
Many restaurant owners are being forced to raise their menu pricing as a result of rising food prices. Tostenson claims that they are currently minimal.
“We’ve probably seen 8 to 10 per cent price increases across the board on most menus,” Tostenson said. However, it’s not that horrible.
For example, if you order a $15 hamburger, it can cost $16.
Restaurants are in a difficult situation because, although being forced to pass on the increased costs, they must be careful not to raise prices to an unaffordable level for customers.
Tostenson stated, “We’re trying to find that sweet spot to make sure that folks can go out without too much sticker shock.”
But in addition to the rising food costs, they’re also noticing a trend among diners who are reducing spending amidst the rising costs of living.
We’ve seen that visitors are arriving less frequently, and their average bill is lower than it used to be, Keeghalan added.
“People may not order the second drink, choose a glass of wine rather than a bottle, or omit the appetisers or the dessert altogether.
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A recent survey, according to Canadian researcher Maru Group, showed that 60% of Canadians are cutting back on their expenditures.
Of those, 68% stated that they were limiting their restaurant eating and/or takeout orders.
When asked what they were cutting back on, folks interviewed by Global News on the streets of Kelowna on Thursday echoed the survey.
Ali Angus announced, “We’re going to eat out.
Peter Thompson mentioned going out to restaurants and other similar activities.
The B. C.
The Restaurant Association is hoping that the pent-up demand for eating out that has resulted from COVID lockdowns would continue into the upcoming Christmas season.
It’s only been the past month or two, Tostenson remarked. “We’ll see what the issue is,” said the speaker, “the interest rates are sort of taking impact.” On the other hand, the holiday season is approaching. People tend to spend a bit more, so we may just be lucky.
”
When individuals decide to eat out, the owners of DunnEnzies Pizza say they should be deliberate about the restaurants they pick.
To support local companies and patronise establishments in their neighbourhood, Keeglaghan said.
Tostenson continued by saying that the restaurant business has proven it can endure adversity.
“The industry is still resilient, as it demonstrated during the pandemic,” he said.
And it’s challenging.
“Those are our visitors, and since we work in hospitality, it’s our responsibility to ensure that they always have value in front of them.”
Restaurants in the Okanagan are experiencing widespread inflation.
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