TORONTO — Rising grocery costs are expected to cause an increase in menu prices at Canadian restaurants, according to CTV News.
Restaurants Canada’s quarterly figures suggest that 65 per cent of the country’s eateries report their food budgets are higher than they were at the same time last year. Restaurant operators cite soaring prices for beef, pork and produce as the cause of this increase.
As a result, 54 per cent of restaurants say they’re expecting to raise their menu prices within the next six months in order to combat dwindling profit margins.
“It’s an extremely competitive industry and they have very price-resistant customers,” said Joyce Reynolds, EVP Government Affairs at Restaurants Canada. “When they try to increase their prices, they find that customers aren’t willing to pay them.”
