TORONTO, Feb. 2, 2012 /CNW/ - Rising food and labour costs are the top
two challenges facing Canada's restaurant industry, according to the
latest findings from the Canadian Restaurant and Foodservices
Association's (CRFA's) Restaurant Outlook Survey. The survey also
finds a growing number of restaurant operators expect sales to slow
over the next six months. Despite these pressures, restaurant operators
are holding the line on menu prices and staffing levels.
The results from the fourth quarter of 2011, released today, show the
top factors negatively affecting restaurants sales are:
rising food costs, cited by 77% of respondents;
increasing labour costs, cited by 67% of respondents;
a weak economy, cited by 58% of respondents; and
a shortage of skilled labour, cited by 32% of respondents.
In terms of the sales outlook over the next six months:
31% of operators expect their sales to grow at a slower rate over the
next six months - compared to 19% of respondents in the third quarter
22% expect sales to grow at a faster rate - compared to 28% of
respondents in the third quarter.
Despite these pressures, operators are hesitant to pass on rising costs
to customers - 53% of respondents expect to hold menu prices steady
over the next six months compared to 40% in Q2 of 2011. CRFA's survey
also indicates three-quarters of restaurant operators will maintain
employment levels or add new staff over the next six months.
"At our core, we are a service industry that invests in people," says
Whyte. "As the fourth-largest employer in Canada and the number one
source of first jobs in Canada, restaurants play a vital role in job
creation in every community."
Food and labour are the two largest expenses for restaurants, taking
nearly 70 cents of every dollar in sales. Statistics Canada reports an
average pre-tax profit margin for restaurants of just 4.5% of operating
Meeting with Bank of Canada
CRFA met with Bank of Canada Governor Mark Carney yesterday to discuss
these findings, and outline the importance of our $63-billion,
About the survey
CRFA received more than 300 completed surveys for the fourth quarter of
2011, representing nearly 8,000 establishments across Canada. CRFA's
Restaurant Outlook Survey is sponsored by Interac. For more results
from the CRFA Restaurant Outlook Survey, 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 foodservice industry employs
more than one million people in communities across the country.
SOURCE Canadian Restaurant and Foodservices Association
For further information:
Prasanthi Vasanthakumar, Communications Specialist, 416-649-4254 or firstname.lastname@example.org.