Almost half of Canadian restaurants still operating at a loss

  Рет қаралды 18,300

Financial Post

Financial Post

Күн бұрын

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.

Пікірлер: 154
@aliquraishi3525
@aliquraishi3525 16 күн бұрын
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.
@DPapas
@DPapas 17 күн бұрын
There are so many points I can make on this issue, but the biggest reason is Canadians have less disposable income.
@MeMe-cz6pk
@MeMe-cz6pk 17 күн бұрын
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.
@hrmprofessor
@hrmprofessor 17 күн бұрын
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.
@SquarishLink
@SquarishLink 12 күн бұрын
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.
@hrmprofessor
@hrmprofessor 12 күн бұрын
@@SquarishLink Right... that was the era of cheap and affordable dining... Previous to fast food, dining out was far less common.
@SquarishLink
@SquarishLink 12 күн бұрын
@@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.
@mozar5175
@mozar5175 15 күн бұрын
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.
@Aitch-102
@Aitch-102 17 күн бұрын
I'm not paying a waitress $20 for going to the kitchen & back.
@Slickpete83
@Slickpete83 17 күн бұрын
*yeah plus they make crazy $$ amounts of tips, they make more then the cooks, who had to go to school for that job*
@huskavarnaband
@huskavarnaband 17 күн бұрын
cmon, man
@mikeb5664
@mikeb5664 17 күн бұрын
I'm sure we can find the people that would say the same about you.
@Aitch-102
@Aitch-102 17 күн бұрын
@@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.
@Aitch-102
@Aitch-102 17 күн бұрын
@@mikeb5664 Still waiting...
@goldguilder9554
@goldguilder9554 17 күн бұрын
Uber eats is gouging like a cancer on the restaurants. Delivery drivers earn more than the restaurant on a given order
@Aitch-102
@Aitch-102 17 күн бұрын
Maybe they should deliver their food themselves then.
@trainsbuseshostels
@trainsbuseshostels 16 күн бұрын
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.
@travisbickle1455
@travisbickle1455 16 күн бұрын
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.
@BlagoP
@BlagoP 16 күн бұрын
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.
@StuntDonk
@StuntDonk 17 күн бұрын
Half of those restaurants give you your daily requirment of sodium in one meal
@jackmidst8304
@jackmidst8304 17 күн бұрын
Daily?? Weekly!!!!
@Doug-zl8nb
@Doug-zl8nb 17 күн бұрын
People should either home be a memolist.In so many ways canada is canada is in big trouble
@jackmidst8304
@jackmidst8304 15 күн бұрын
@@Doug-zl8nb A what??????
@keithpalmer4547
@keithpalmer4547 17 күн бұрын
Tip Machines now are 15% 20% and 25% .......
@dznuts3286
@dznuts3286 16 күн бұрын
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.
@Slickpete83
@Slickpete83 17 күн бұрын
*yeah because the rent for restaurants is crazy high*
@parkerbohnn
@parkerbohnn 17 күн бұрын
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.
@4spooky8u
@4spooky8u 17 күн бұрын
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
@paulcrosby6953
@paulcrosby6953 16 күн бұрын
Zero would be better. Don’t tip if you are standing.
@4spooky8u
@4spooky8u 16 күн бұрын
@@paulcrosby6953 they really needed my 6 cents
@ajwolf5977
@ajwolf5977 15 күн бұрын
Pay cash
@4spooky8u
@4spooky8u 15 күн бұрын
@@paulcrosby6953 they really needed my 6 cents
@berry1669
@berry1669 12 күн бұрын
you got sucked in by a machine - I wont go back to this place ever
@nitinprasad3842
@nitinprasad3842 17 күн бұрын
Any ways they were over priced to begin with and i am tired of taking their entitlement and crappy service.
@done536
@done536 17 күн бұрын
Delivery adds more $ to the final outrageous price.
@Bharatnamo
@Bharatnamo 17 күн бұрын
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😅
@jonjone661
@jonjone661 17 күн бұрын
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.
@ameliavv1019
@ameliavv1019 17 күн бұрын
Because Canadians born between 1945 and 1965 don't care about future generations, not even their own kids.
@fycfyc1
@fycfyc1 17 күн бұрын
Time to close shop.
@JohnAnderson-sq8lt
@JohnAnderson-sq8lt 16 күн бұрын
There is a Restaurant in my community that automatically charges 20% tip, I will never go there and hope they go out of business
@davidmarks7787
@davidmarks7787 16 күн бұрын
The easiest way to make a million dollars is to buy a restaurant for 2 million.
@TheTazz2you
@TheTazz2you 15 күн бұрын
THAT STUPID MONEY WILL SEIZE TO EXSISTO OK YOU GOT THE PLAN MY. 😅😅😅😊😊😊😊😊😊😊😊😊😊😊FRIENDS
@kevinn1158
@kevinn1158 17 күн бұрын
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.
@MeMe-cz6pk
@MeMe-cz6pk 17 күн бұрын
Haha. You can buy 12 hotdogs and buns for $18.
@kevinn1158
@kevinn1158 17 күн бұрын
@@MeMe-cz6pk LOL. Yes.
@jadeluu518
@jadeluu518 15 күн бұрын
Shocking unreal indeed .😬😬😬
@ednichol7419
@ednichol7419 17 күн бұрын
I have a small food store and the change happened twenty months ago. No low value product sells. Basic food sells, period.
@jackmidst8304
@jackmidst8304 17 күн бұрын
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.
@paulcrosby6953
@paulcrosby6953 16 күн бұрын
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.
@CreativeBotSam
@CreativeBotSam 14 күн бұрын
Then why don't you just tip the amount you want. Never seen a machine w/o override.
@richardrogers7479
@richardrogers7479 16 күн бұрын
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!
@CreativeBotSam
@CreativeBotSam 14 күн бұрын
I'm sure they do realize that. They are struggling to stay open
@rtothec1234
@rtothec1234 16 күн бұрын
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.
@ikexkim
@ikexkim 17 күн бұрын
I try to pay and tip in cash most of the times
@tonyfulford3175
@tonyfulford3175 17 күн бұрын
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.
@groengm2012
@groengm2012 16 күн бұрын
Same here
@ruis2345
@ruis2345 17 күн бұрын
keep jacking up the fking tip rate.
@mikeb5664
@mikeb5664 17 күн бұрын
Who is forcing you to tip anyone?
@Dragonstar-p5c
@Dragonstar-p5c 17 күн бұрын
you know it's optional right? I stopped tipping a few years back, no one is calling the police if you tip $0.
@ruis2345
@ruis2345 15 күн бұрын
@@Dragonstar-p5c i mean seriously, in majority of the cases, do you really believe 0 tip is an option across US and Canada?
@grindtoothmedia120
@grindtoothmedia120 17 күн бұрын
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.
@fycfyc1
@fycfyc1 17 күн бұрын
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.
@cryptoholica72
@cryptoholica72 17 күн бұрын
It's going to be challenging times across many sectors I fear.
@Ironpumper
@Ironpumper 17 күн бұрын
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.
@robqwertyuipp8750
@robqwertyuipp8750 16 күн бұрын
Almost 18 dollars for a big Mac combo with tax at mc donalds now in Ontario!! Crazy times
@SquarishLink
@SquarishLink 12 күн бұрын
agreed, its insane better and almost 10x cheaper to host at home.
@berry1669
@berry1669 12 күн бұрын
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
@Invictus888
@Invictus888 15 күн бұрын
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
@ShitWrangler
@ShitWrangler 14 күн бұрын
weak men make hard times, your boomer satanic sex cult isn't worth funding further. Pension, pulled.
@miralev7396
@miralev7396 16 күн бұрын
Same with events. 50% down. both social and corporate.
@TheTruthAlways
@TheTruthAlways 17 күн бұрын
Payroll taxes, carbon taxes, rising wages are doing its work
@mikeb5664
@mikeb5664 17 күн бұрын
Carbon taxes add
@LePrimo420
@LePrimo420 16 күн бұрын
@@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
@mikeb5664
@mikeb5664 16 күн бұрын
@@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.
@CreativeBotSam
@CreativeBotSam 14 күн бұрын
Between the high food costs and paying at least $16/HR in wages I am surprised that more restaurants haven't closed.
@ickyteify
@ickyteify 17 күн бұрын
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.
@stevenchow408
@stevenchow408 17 күн бұрын
Setting up for Robo restaurnt
@chris14091975
@chris14091975 17 күн бұрын
great reporting
@dangrather1280
@dangrather1280 16 күн бұрын
Stopped eating in restaurants all together. Only time I go is if someone else is paying.
@andrewmccoll1582
@andrewmccoll1582 12 күн бұрын
Businesses can't make a loss forever. It's been 4 years now - why are there still so many restaurants?
@lppoqql
@lppoqql 17 күн бұрын
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.
@michael2275
@michael2275 17 күн бұрын
This is what Trudeau and WEF want. Immigration invasion and housing bubble part of the plan.
@tonyfulford3175
@tonyfulford3175 17 күн бұрын
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.
@MAQ-SK
@MAQ-SK 17 күн бұрын
Well said. Yes they will collapse the society to save the housing bubble. 😢
@MeMe-cz6pk
@MeMe-cz6pk 17 күн бұрын
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?
@lppoqql
@lppoqql 17 күн бұрын
@@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??
@jeromenewzelande1957
@jeromenewzelande1957 16 күн бұрын
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.
@romeoandjuliet6522
@romeoandjuliet6522 17 күн бұрын
How is ubar business in calgary ubar cab ? Any one knows in day shift
@adrianvisentin534
@adrianvisentin534 15 күн бұрын
Prices are high. Tips are high and the WORST is paying HST on the total!
@madraven07
@madraven07 16 күн бұрын
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.
@tolgao
@tolgao 16 күн бұрын
I enjoy grilling ribeye steak at home, and it costs me about the same as a fast food meal with fillers.
@jasonseymour-rf6zz
@jasonseymour-rf6zz 16 күн бұрын
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
@user-kv4kp4co1r
@user-kv4kp4co1r 16 күн бұрын
Pump more in the housing market.
@mycharles3340
@mycharles3340 15 күн бұрын
I resent having to pay tips. I never go to places I'm expected to tip. The food is expensive enough.
@brl6219
@brl6219 17 күн бұрын
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.
@calm9447
@calm9447 15 күн бұрын
We just need the federal government to do nothing but resign in shame. They have done enough damage.
@Vic-bf4pf
@Vic-bf4pf 17 күн бұрын
I don't tip anymore
@davidpaulmert800
@davidpaulmert800 15 күн бұрын
Trudeau should be proud
@kyungshim6483
@kyungshim6483 17 күн бұрын
gosh! Is there any good news in this Trudeau economy?
@parkerbohnn
@parkerbohnn 17 күн бұрын
Canada isn't technically in a recession just yet.
@cryptoholica72
@cryptoholica72 17 күн бұрын
Lol ok...
@saoussanerifai2946
@saoussanerifai2946 15 күн бұрын
It's inflation my friend! doesn't need much to analyze.
@krystalzhang1073
@krystalzhang1073 7 күн бұрын
How much of this is tax evasion?
@ron.mexico.
@ron.mexico. 16 күн бұрын
2019…the good old days
@Mikefromcanmore107
@Mikefromcanmore107 15 күн бұрын
1950 is the good ole days!!!!!
@rhythmandacoustics
@rhythmandacoustics 17 күн бұрын
Restaurant industry is simply pure competition. Too much competition. If you want to profit avoid this industry.
@jaymar1615
@jaymar1615 17 күн бұрын
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
@seanl548
@seanl548 14 күн бұрын
Larysa Harapyn still hot AF
@TalzBlaze
@TalzBlaze 15 күн бұрын
But Canadian Restaurants are selling Immigrants LMIAs to cover up the losses
@HypocriticYT
@HypocriticYT 10 күн бұрын
Trudeau taxes your meal always taking a large bite. Just an average restaurant is $40 per person 😮.
@remzyy2074
@remzyy2074 17 күн бұрын
If it’s on loss . Just shut and go away
@TheTazz2you
@TheTazz2you 15 күн бұрын
CANADA IS GONE FOREVER. NO ILL FIX IT SOON ENOUGH 😊😊😊😊
@pouetpouet941
@pouetpouet941 17 күн бұрын
No more free money sorry
@michael2275
@michael2275 17 күн бұрын
Trudeau's crappy Canada
@jonjone661
@jonjone661 17 күн бұрын
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.
@shiner8375
@shiner8375 14 күн бұрын
All these comments talk about companies, insurance Etc. Every comment should be why governments caused this!!!!
@parkerbohnn
@parkerbohnn 17 күн бұрын
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.
@jackmidst8304
@jackmidst8304 17 күн бұрын
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…..
@mikeb5664
@mikeb5664 17 күн бұрын
Sure, let's have everyone live in tents so you can eat at a restaurant.
@kikolatulipe
@kikolatulipe 14 күн бұрын
FP= 💩
@haniammache3386
@haniammache3386 17 күн бұрын
restaurant job are not job....this is meant for familles to open and employe themselves
@jptrainor
@jptrainor 17 күн бұрын
Yes well, the vast majority of restaurants serve absolute garbage.
@bknghiem
@bknghiem 17 күн бұрын
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.
@mikeb5664
@mikeb5664 17 күн бұрын
Tipping is not new. And its optional as far as I know.
@bknghiem
@bknghiem 15 күн бұрын
@@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.
@mikeb5664
@mikeb5664 15 күн бұрын
@@bknghiem LOL, ya it's optional. But, cool story about Mom & Dad. I sure hope they've recovered.
@ruckinehround6965
@ruckinehround6965 17 күн бұрын
Businesses are struggling. Trickle down effect will continue. Government bloat on the rise.
@JoeSmith-pu9hi
@JoeSmith-pu9hi 17 күн бұрын
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