Soaring inflation, minimum wage hike force restaurants to adjust menus

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Embattled restaurant owners facing mounting costs — as they digest the provincial minimum wage hike — say they have had to decide whether or not to pass some of their skyrocketing costs onto their customers.

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“I raised the price of everything actually at the beginning of this year,” said George Markakos, owner of Factory Girl on Danforth Ave. “And I still don’t have the margin I would’ve if minimum wage had been left at $14 and food costs hadn’t gone bananas.”

The minimum wage increased Jan. 1.

“It’s killer,” Markakos said of the wage hike. “It’s unbelievable what we are paying for everything.”

“I’m just kind of doing the ‘keep afloat’ thing and hoping for better days,” he added.

But prices are rising each day for just about everything.

“Right now, every single thing I buy has gone up,” said Markakos, who has operated for 12 years.

“Every beer I buy, every wine I buy, everybody has sent me a notice that ‘We are raising price by 5% or 6%.’”

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A box of romaine lettuce that previously cost Markakos $42 is now $131.

“Extremely expensive. Like, crazy expensive,” he said.

An eight pack of steaks cost $64 a year ago. Now it costs $99.

Staff at Bar Neon have been trying to get creative with what they select for their menu and in choosing suppliers to try to minimize the impact on customers.

“Obviously price increases are going to happen. We did increase our prices about 10%,” said Marnie Brandejs, event and marketing co-ordinator with Bar Neon.

She added the minimum wage hike has been less of a factor because “we offer very competitive wages anyway. Our chefs are not $15 an hour.”

The rise in other costs has been felt more keenly.

“We are trying to take the brunt of it because we know this is a period that is going to get better and is going to pass at some point,” Brandejs said.

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There has been a 31% increase in the price of wheat in the past month — mainly due to the war in Ukraine, a major global supplier.

That rise could affect Bar Neon’s bakery, which also supplies other businesses.

“Our bread orders have definitely taken a little bit of a hit, but at the end of the day it’s just something you have to go forward with. You can’t increase your bread prices by 44%,” Brandejs said.

About 13,000 restaurants closed across the country since March 2020, according to Restaurants Canada.

Both Bar Neon and Factory Girl say they are encouraged customers are returning.

“Everybody has been unbelievably understanding and supportive,” Markakos said. “People who come in couldn’t be kinder.”

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