With so much talk in the media about inflation and rising food costs, many restaurants have increased their menu prices to try and offset their costs. Just how much have prices gone up for consumers as operators have raised rates to try and recoup some of the losses felt over the last few years?
According to Technomic’s latest report, here are the price increases that consumers are seeing year-over-year when they order off most restaurant menus:
- Dessert (+ 10.7 per cent)
- Non-alcoholic beverages (+ 10 per cent)
- Add-on items (+ 8.6 per cent)
- Kids’ menu items (+ 8.4 per cent)
- Senior menu items (+ 7.7 per cent)
- Appetizers (+ 7.2 per cent)
- Entrées (+ six per cent )
- Proteins: chicken dishes (+ 8.2 per cent) and beef dishes (+ 9.8 per cent)
- Side dishes (+ 5.9 per cent)
Studies show that over 80 per cent of consumers have made adjustments to their dining habits as a result of higher food costs. More and more consumers are hunting for lower prices and better value when visiting their favourite businesses, so restaurants need to get creative in attracting and retaining those customers. Loyalty and engagement have become more important than ever in holding on to diners and encouraging repeat restaurant visits.
To that end, in addition to increasing prices, many restaurants are seeking to add profit by getting creative with their revenue streams, adding ventures like retail, corporate events, and more to their rosters.
RELATED: Restaurants are branching out, developing new revenue streams
With experts predicting that higher food costs could be here to stay in Canada, restaurants will need to lean on technology to streamline operations, lower costs, and save on staffing as they try to balance customer satisfaction with their bottom lines.
