The summer of 2022, which is drawing to a close, took place entirely without health measures or even without the obligation to present a vaccination passport. We can therefore say that this was the first “normal” summer in three years. And restaurateurs have felt positively this effect that we could call post-pandemic… while facing other challenges like labor shortages and rising costs. With all these ingredients, how are our restaurants faring now?
First, you should know that customers have taken over the restaurants over the past summer. For example, the results of a survey conducted by the collective La Table ronde suggest that the major gastronomic tables in Quebec welcomed 22% more customers compared to 2019, i.e. before the pandemic.
This strong increase could suggest a promising future, but some dark clouds hang over the heads of restaurant managers.
First, despite this marked increase in traffic, we should note an 18% decrease in attendance at establishments located in downtown Montreal, the economic lung of Quebec.
Second, it is impossible to ignore the labor shortage. Also according to The Round Table, restaurant payrolls have increased by 26% in recent months. Qualified employees are scarce, the best having chosen to redirect their careers as the pandemic hit the province hard.
According to Restaurants Canada, in Quebec, there are more than 38,000 vacant positions in the restaurant sector.
Finally, a huge bouquet of factors can explain the increase in food costs: inflation, interest rates, pandemic, war in Ukraine, etc. Whatever the reason, restaurants have seen their costs jump by more than 20%. The profit margin is shrinking.
Although the increase in attendance is doing our restaurateurs immense good, other major challenges are placing additional pressure on them.
Restaurants Canada also argues that there have been twice as many closings as openings in the past year in the country.
Will consumers be able to keep up the pace and continue their visit to the restaurant? Of course, this would replenish the coffers of our businesses.
On the other hand, let's not forget that consumers are also suffering the consequences of rising prices and interest rates.
