Skyrocketing costs push takeout restaurant to raise menu prices
Rising food, supplies and utility costs drive Lenny's Take Out to increase menu prices
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The owner of a well-known Shediac takeout restaurant is blaming rising costs – including NB Power rates, the carbon tax and minimum wage – as he raises menu prices, warning that other eateries will also have to follow suit.
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Lenny’s Take Out, known for its iconic chicken statue and which also has a location in Moncton, made the announcement on its official social media page, stating the prices will be going up as of April 9, but informed customers that portion sizes will be staying the same.
Lenny’s is known for its seafood, fried chicken and poutine.
Jamie Dionne, owner of Lenny’s, said costs have been rising steadily over the past few months, and April 1 brought another major hit with a 13.2 per cent increase in NB Power rates, a hike in the federal carbon tax, and the minimum wage going up to $15.30 per hour.
Dionne estimates the NB Power rate hike alone will cost his business several hundred dollars a month.
He has also seen the rising cost of propane, packaging, poultry, seafood, spices and oil for the fryers, which he predicts will all spike again with the ballooning fuel costs.
“Things are going up everywhere,” he said. “It adds up.”
The pinch on the business’s profit margin led Dionne and his team to make the hard decision to raise menu prices for the first time in two years. Dionne said some items may see a 50-cent increase while others may go up by a dollar.
“We have to make money. If we don’t make money and we go backwards, we have to close our doors,” he said.
Dionne said other restaurants will most likely follow suit and increase their prices if they haven’t already. He made the announcement on his restaurant’s social media page to give customers a heads-up, so they are not surprised when they step up to the counter to place their order.
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So far, Dionne said he has received encouraging feedback from understanding customers, though some have said they may need to cut back on their visits to the restaurant.
“It’s a struggle for people to go out and eat, let alone buy groceries,” he said. “I feel bad for families because I have a family. I know it feels.”
Nadine Fullarton, CEO of the Chamber of Commerce for Greater Moncton, said the group has been hearing from its members, including restaurant owners, who have been feeling the pressure from rising costs. The pinch is being felt across all industries within the business community.
“If you look at utilities that is going to go across every sector. Anybody that owns an office building or a space that’s going to affect them,” she said.
Fullarton said she understands why restaurant owners are increasing their menu prices.
“I’m sure a lot of them don’t want to have to do that, but it’s a matter of being able to stay open. It puts them in a place where they have no choice,” she said.
During difficult economic circumstances, the restaurant community in Metro Moncton has been working together put on events like Flip Burger Fest and Moncton Taco Week, said Fullarton.
“That kind of drives businesses particularly during a time of the year where it is particularly dead
these are really creative ways to get people out,” she said, noting it could be good for restaurant owners to work on new festivals to generate a buzz in the restaurant scene.
During the post-pandemic period the Chamber has been advocating for business owners, such as pushing for businesses to have more time to pay back their Canada Emergency Business Account loan.
Fullarton said the Chamber wants to continue to work with government, and would like to see more efforts, incentives, and initiatives to support or provide relief to business owners feeling the strain from rising costs.
Inflation, high food prices and high fuel prices are global issues and are unfortunately not confined to New Brunswick, said Greg Turner, minister responsible for economic development and small business in a statement.
“The Province is monitoring these economic factors and will continue to respond proactively to the needs of business and employers as appropriate,” he said.
Turner said that while Economic Development and Small Business does not provide any funding for restaurants, Opportunities New Brunswick does offer a business navigator service to help business owners and entrepreneurs navigate various challenges associated with starting, owning, and operating a business.
The business navigators are available by email at nav@navnb.ca or by phone 1 (833) 799-7966 to provide one-on-one support.
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