A new report finds that 75% of Canadians are dining out less often due to the rising cost of living. Erica Natividad with how restaurants are adapting amid an already difficult environment.
thoughts on this haha any foodie
@Northern Light @AlbertC
Lots.
1) Affordability is by far the biggest issue here. That is driver by low/stagnating incomes and by the high cost of housing. Restaurant spend is generally discretionary, its what you can spend after the basics are covered. For many people that's an increasingly small number.
2) Habit is a factor, post-Covid, and hybrid work, many people got out of the habit of eating out.
3) Lower consumption of alcohol is a social trend and restos that are overly reliant on people indulging and frankly overpaying for a glass or a bottle are being squeezed.
The solutions aren't complicated.
1) Minimum wage must rise faster than inflation, to at least ~$22 per hour, and there must be a reduction in low-wage temporary workers at all wage levels to stimulate wage growth.
As part of this, hospitality businesses will be inordinately hit by the wage costs, though they also benefit through more customers and higher spend, but government should partially offset the cost, in general,
though lower payroll taxes and for hospitality businesses with a larger wholesale discount on booze.
2) The habit issues will be partially corrected by Return to Office. I expect downtown restos in particular to see a significant increase in volumes, particularly at lunch from now through January, then level off a bit.
Restos can contribute to getting people back in the habit, by giving away samples outside their restos during high traffic periods. Its a low cost thing to do, relatively, but even a low percent conversion to business can yield a lot in return.
Give away 200 samples, if even 10% convert to a paid visit, you got 20 households as paid guests (which will more than cover the samples with just one visit) and then if you make a good impression, they'll be back, and they'll hype you. Best free advertising is someone else's recommendation.
3) The relative cost of some foods needs to rise a bit, and restos need to do a bit better on turning tables and on right-sizing their establishments (many places carry excess seating/tables for Fri/Sat at considerable rent, that sit empty the other 5 days). Do all that, price the booze a bit more attractively. Passing through the gov't discounts and price cuts, and you'll see more uptake. Make sure to have 'special' drinks that are booze free, high quality mocktails or other offerings as well.
