Canada’s foodservice industry roars back after two years of pandemic pain - but soaring inflation blunts the joy

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Pandemic restrictions are lifted and customers are dining out again, but now restaurant owners are grappling with soaring inflation

As the creative director of SK Cookks, a Nigerian restaurant in northwest Toronto, Sasilka Shallangwa was about to make her big move downtown when the pandemic erupted in early 2020.

Statistics Canada recently released data showing that April sales at restaurants and bars rebounded above prepandemic levels for the first time in two years. Labour is also a major issue. During the pandemic, a lot of restaurant workers moved on to other jobs, and the industry is currently reporting a staff shortage. Ontario alone has about 20,000 vacancies in the foodservice industry, according to industry lobby group Restaurants Canada.

There are reasons to be optimistic. Spending by Toronto-Dominion Bank clients using debit and credit cards climbed 15 per cent in May from the same month a year ago, even after adjusting for inflation, with much of that growth coming from spending on services such as dining. Commercial foodservice sales in Canada are expected to reach $74.6-billion in 2022, according to Restaurants Canada, up 21 per cent over 2021.

Harry Ahn, who runs Seoulicious, a Korean restaurant in downtown Toronto, is torn by it all. “Things are becoming much better now than before,” he said. “This is the first summer that everywhere is beginning to open up to people and we are seeing our customers coming back to dine in.”But Mr. Ahn has also raised the price of some items on his menu by $1 to account for the rising cost of food. His prices now range from $6 for an appetizer to $34 for a bowl of bibimbap, a special Korean rice dish.

 

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I switched to cooking everything at home. We have too many restaurants and need more specialty food stores with ingredients as opposed to final products. My city doesn't even have a bakery that sells decent bread.

Just returned from a week in Toronto (first visit since Covid as our last was in 2019) & it’s my “home in my heart”, but it will be years now before we return as it’s now simply far too expensive. $60 for breakfast (for 2), $30 for a light lunch & $250 for dinner (all inc tip)!

So it didn’t actually “roar” back is what you’re saying?

Fall lockdowns will hurt too.

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