TORONTO, July 16, 2012 /CNW/ - Guarded optimism prevails as 40% of
restaurant operators expect sales to gather speed in the next six
months - up slightly from 38% in the first quarter and a subdued 22% in
Q4 of 2011. The Canadian Restaurant and Foodservices Association's
(CRFA's) Restaurant Outlook Survey for Q2 of 2012 also finds many
operators are planning to add to their staff roster to keep up with
Although operators were more upbeat in Q2, optimism steadily dropped
from April to June - reflecting seasonal trends as well as concerns
with the global economy. Additionally, labour costs and a labour
shortage continue to hurt restaurateurs. However, a moderation in food
costs and the waning impact of rising gas prices have brought some
relief to the industry.
"Optimism is tempered in the industry, and with good reason," says Garth
Whyte, CRFA President and CEO. "In addition to dealing with ongoing
issues like rising food, liquor and labour costs, restaurants now have
to contend with global economic uncertainty."
"The good news is that the majority of restaurants are planning to hold
menu prices steady," continues Whyte. "And true to form, restaurateurs
will be hiring more people - 87% expect to maintain or increase
employment levels, creating a ripple effect of social and economic
benefits across the country."
The results from Q2 of 2012 reveal a mixture of factors feeding into the
industry's guarded optimism:
35% of restaurateurs posted higher same-store sales growth in Q2
compared to last year;
64% reported higher food costs in Q2, down from 72% in Q2 of 2011;
43% were impacted by rising gas prices in April, but by June this share
fell to 27%;
58% struggled with rising labour costs, with table-service restaurateurs
noting a significant shortage in skilled and unskilled labour; and
28% experienced weak consumer spending, up from 20% in Q2 of 2011.
About the survey
CRFA's Restaurant Outlooks Survey tracks business conditions for nearly
8,500 foodservice establishments across Canada. For more results, click here.
CRFA is one of Canada's largest business associations, with more than
30,000 members representing restaurants, bars, caterers, institutions
and other foodservice providers. Canada's restaurant industry employs
more than one million people in communities across the country.
SOURCE Canadian Restaurant and Foodservices Association
For further information:
Mary Gazze, 1-800-387-5649, ext. 4226 or firstname.lastname@example.org.