Achi news desk-
Anyone who has been to Shediac, NB has probably noticed the giant chicken at Lenny’s.
Customers of the popular store will notice slightly higher prices starting next week.
Owner Jamie Dionne posted a message on Facebook saying prices will increase due to inflation.
“There are a lot of families out there who don’t have a lot of money and they budget. So when they come into the restaurant, the reason why I made the post, was to let customers know when they come into the building that it will cost them more money. That way, it’s not a surprise when they come in,” says Dionne.
The business decision is a result of the rising cost of food, power, propane, wages and new taxes.
Dionne said the response to the post has been generally positive.
“Everyone has been, to be honest, standing behind us. We have a few people, but I can’t make everyone happy. We’re doing what we can to keep our doors open as a business,” Dionne said.
The giant chicken at Lenny’s in Shediac, NB (Source: Derek Haggett/CTV News Atlantic)Jordi Morgan, vice-president of Atlantic, Restaurants Canada, sympathizes.
“I think the example of the guy in Shediac who is dealing with some of these rising costs and having to increase menu prices, it’s very difficult for them. Increasing menu prices is something a restaurant owner doesn’t want to do,” says Morgan.
Business is good at Cheers Beverage Room in Moncton, but that doesn’t mean they aren’t feeling the pinch of inflation and taxes too.
On Monday, the federal alcohol excise tax increased by nearly five percent on beer, wine and spirits.
“So we have to pay a different price on every bottle we buy,” says co-owner Jennifer Somers. “So that has to come into consideration when we cost our menu.”
Somers said the price of some supplies is still very high even after COVID.
“One example I tell people all the time is frying oil. Pre-pandemic, frying oil was twenty-five bucks. Now, it’s $56. So costs are still high and every day we shop around to try and find the best product and price we can,” said Somers.
Morgan said that a business can only absorb so much over a short period of time.
“We have seen some massive increases in labor costs through minimum wages. We have seen costs rise in terms of energy, obviously, and it is coming to an end. People have to make some decisions about either staying in business or they’re going to have to change their business model a little bit.”
Morgan said Restaurants Canada has been talking to Ottawa and the provincial governments about inflation, labor costs and tax issues.
“Inflation is really a big one, so we’re looking at creative ways to see if the government can help. Either through direct spending on programs or if they can do it by not adding additional costs,” said Morgan.
Customers at Cheers said they haven’t been cutting back on eating out because of cost inflation, but that could change.
“We’ll see,” said Lawren Campbell. “It’s going to catch up to the wallet, to the finances eventually, and we know it’s getting a bit more expensive so it changes the grocery order so ultimately it’s n we have to make a decision about, do we go out as much, or do. do we have more in the pantry?”
Aaron Kinden eats out about once a week and inflation doesn’t really stop him.
“Not too much, I’d say,” Kinden said. “It’s only a couple of bucks, really.”
In the Facebook post, Dionne said the portions, quality and customer service at Lenny’s will not change despite the menu increase and she does not regret being honest with customers about the changes.
“I’m definitely happy, because as a father, I have a family of my own, I would much rather know before walking into an institution how much it’s going to cost me,” said Dionne.
